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 PNFP Reports Diluted Earnings Per Share of $0.65 for 4Q 2015
   Tuesday, January 19, 2016 5:30:02 PM ET

Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $0.65 for the quarter ended Dec. 31, 2015, compared to net income per diluted common share of $0.53 for the quarter ended Dec. 31, 2014, an increase of 22.6 percent. Net income per diluted common share was $2.52 for the year ended Dec. 31, 2015, compared to net income per diluted common share of $2.01 for the year ended Dec. 31, 2014, an increase of 25.4 percent.

Excluding pre-tax merger-related charges of $2.5 million and $4.8 million for the three months and year ended Dec. 31, 2015, respectively, net income per diluted common share was $0.69 for the three months ended Dec. 31, 2015, or a 30.2 percent increase over the same period last year, and $2.61 for the year ended Dec. 31, 2015, or a 29.9 percent increase over the year ended Dec. 31, 2014.



Pinnacle completed the acquisitions of CapitalMark Bank & Trust (CapitalMark) on July 31, 2015 and Magna Bank (Magna) on Sept. 1, 2015. The financial statements accompanying this press release and the financial condition and results of operations described herein reflect the impact of the acquisitions beginning on the respective acquisition dates and are subject to future refinements in the firm’s purchase accounting adjustments.

"I could not be more proud of our associates as I look back on a very successful 2015," said M. Terry Turner, Pinnacle’s president and chief executive officer. "At the beginning of the year, we outlined several longer-term initiatives, including expansion into Memphis and Chattanooga, investing in fee businesses that we believe will drive shareholder value and continuing our focus on improved bottom-line results. With the acquisitions of CapitalMark and Magna, we now are in a great position to grow our brand in both Chattanooga and Memphis. Earlier in 2015, we also acquired a 30 percent interest in Bankers Healthcare Group (BHG). We believe our partnership with BHG has produced outstanding results for our firm and today we are separately announcing that we have entered into an agreement to increase our investment in BHG. Lastly, excluding merger charges, we are reporting earnings growth of 29.9 percent in 2015. At the beginning of the year, street expectations for earnings growth for our firm approximated 15 percent for 2015, so for our associates to produce these outsized results is a tremendous accomplishment."

GROWING THE CORE EARNINGS CAPACITY OF THE FIRM:

-- Revenues (excluding securities gains and losses) for the quarter ended Dec. 31, 2015 were a record $98.1 million, an increase of $14.6 million from the third quarter of 2015. Revenues (excluding securities gains and losses) increased 51.6 percent over the same quarter last year.

-- Loans at Dec. 31, 2015 were a record $6.543 billion, an increase of $207.2 million from Sept. 30, 2015 and $1.953 billion from Dec. 31, 2014, reflecting year-over-year growth of 42.6 percent. Annualized linked-quarter fourth quarter loan growth approximated 13.1 percent when comparing balances as of Dec. 31, 2015 to balances as of Sept. 30, 2015.

-- Average balances of noninterest-bearing deposit accounts were $1.949 billion in the fourth quarter of 2015 and represented approximately 28.7 percent of total average deposit balances for the quarter. Fourth quarter 2015 average noninterest-bearing deposits increased 41.9 percent over the same quarter last year.

"We continue to believe that banking firms like ours that are capable of significant core deposit growth will be those most highly valued by investors," Turner said. "The rapid rate of organic growth in loans and core deposits across our franchise indicates not only that we operate in great banking markets, but also that our core strategies of hiring the best bankers in our markets, focusing on the commercial and affluent consumer segments and competing aggressively with the large regional banking firms continue to produce value for our shareholders. In 2015, exclusive of our acquisitions, our ongoing recruitment efforts added 36 revenue-producing associates as we continue to invest in future growth. This level of recruitment is significantly higher than that of the past few years. As we enter 2016, our recruiting pipelines give me increased optimism that our firm remains the preferred employer for the best bankers in our markets. In general, despite the incremental personnel and related expenses, the quality and success of our new hires has enabled us to drive our efficiency and noninterest expense to average asset ratios, excluding merger-related expenses, to their best levels ever."

FOCUSING ON PROFITABILITY:

-- The firm’s net interest margin was 3.73 percent for the quarter ended Dec. 31, 2015, compared to 3.66 percent last quarter and 3.76 percent for the quarter ended Dec. 31, 2014.

-- Return on average assets was 1.24 percent for the fourth quarter of 2015, compared to 1.27 percent for the third quarter of 2015 and for the same quarter last year. Excluding merger-related charges, return on average assets was 1.31 percent for the fourth quarter of 2015.

-- Fourth quarter 2015 return on average tangible equity amounted to 14.97 percent, compared to 14.49 percent for the third quarter of 2015 and 13.52 percent for the same quarter last year. Excluding merger-related charges, return on average tangible equity amounted to 15.81 percent for the fourth quarter of 2015.

"Even with significant investments in new markets and new associates in 2015, we experienced improvement in substantially all of our profitability metrics after excluding merger-related charges," said Harold R. Carpenter, Pinnacle’s chief financial officer. "We will continue to monitor our planned and actual performance against all of our long-term profitability targets, as we believe those targets have helped guide us to be one of the most profitable banking firms in the country. That said, even though profitability metrics are important, the consistent growth of the core earnings capacity of our franchise will remain our primary focus."

OTHER FOURTH QUARTER 2015 HIGHLIGHTS:

-- Revenue growth -- Net interest income for the quarter ended Dec. 31, 2015 increased to a record $71.5 million, compared to $62.1 million for the third quarter of 2015 and $50.3 million for the fourth quarter of 2014. Net interest income for the year ended Dec. 31, 2015 increased 22.6 percent as compared to the same period in 2014.

-- Noninterest income for the quarter ended Dec. 31, 2015 increased to a record $26.6 million, compared to $21.4 million for the third quarter of 2015 and $14.4 million for the same quarter last year. Noninterest income for the year ended Dec. 31, 2015 increased 64.5 percent as compared to the same period in 2014. -- Wealth management revenues, which include investment, trust and insurance services, were $5.4 million for the quarter ended Dec. 31, 2015, compared to $5.1 million for the quarter ended Sept. 30, 2015, resulting in a year-over-year growth rate of 6.2 percent.

-- Income from the firm’s investment in BHG was $7.8 million for the quarter ended Dec. 31, 2015, compared to $5.3 million for the quarter ended Sept. 30, 2015. The firm’s investment in BHG contributed slightly less than $0.12 in diluted earnings per share in the fourth quarter of 2015, compared to $0.07 in each of the second and third quarters of 2015.

"Given our relatively recent transition to asset sensitivity, we were pleased to see the mid-December Fed funds rate increase," Carpenter said. "Since that date and through mid-January, approximately $2.16 billion in loans have repriced, while our funding costs have increased only modestly. We also remain pleased with our BHG investment and the results it has provided to our firm. We are announcing separately today that we have committed to increase our investment in BHG. We continue to believe future opportunities are available to both firms as a result of our partnership."

-- Noninterest expense -- Noninterest expense for the quarter ended Dec. 31, 2015 was $52.2 million, compared to $45.1 million in the third quarter of 2015 and $34.4 million in the same quarter last year. -- Salaries and employee benefits were $30.9 million in the fourth quarter of 2015, compared to $27.7 million in the third quarter of 2015 and $23.0 million in the same quarter last year. Incentive costs associated with the firm’s annual cash incentive plan amounted to $3.9 million in the fourth quarter of 2015, compared to $3.6 million in the third quarter of 2015.

-- Merger-related expenses were approximately $4.8 million during the year ended Dec. 31, 2015. The firm will continue to incur additional merger-related expenses for CapitalMark and Magna in future periods primarily due to increased training costs and the conversions of technology systems.

-- The efficiency ratio for the fourth quarter of 2015 decreased to 53.2 percent from 54.0 percent in the third quarter of 2015, and the ratio of noninterest expenses, including merger-related charges, to average assets increased to 2.42 percent from 2.38 in the third quarter of 2015. Excluding merger-related charges, ORE expense and FHLB prepayment charges, the efficiency ratio for the fourth quarter of 2015 decreased to 50.6 percent, and the ratio of noninterest expenses to average assets decreased to 2.30 percent.

-- The firm’s headcount increased to 1,058.5 FTE’s at Dec. 31, 2015, including 213 FTE’s from the entities acquired in 2015.

"As we look at our quarterly expense run rates going into 2016, we do expect expense increases but don’t expect our efficiency or noninterest expense to average asset ratios to increase," Carpenter said. "We are very pleased with the operating leverage that has been created over the last few years and will continue to work to improve our operating metrics. Our belief continues to be that investors will reward those franchises that can demonstrate the ability to operate a growing franchise profitably and efficiently."

-- Asset quality -- Nonperforming assets increased to $36.3 million at Dec. 31, 2015, compared to $35.8 million at Sept. 30, 2015 and $28.6 million at Dec. 31, 2014. Nonperforming assets decreased to 0.55 percent of total loans and ORE at Dec. 31, 2015, compared to 0.57 percent at Sept. 30, 2015 and 0.62 percent at Dec. 31, 2014.

-- The allowance for loan losses represented 1.00 percent of total loans at Dec. 31, 2015, compared to 1.01 percent at Sept. 30, 2015 and 1.47 percent at Dec. 31, 2014. The ratio decrease is partially attributable to increasing total loans as a result of our two bank acquisitions. Those loans were recorded at their fair value upon acquisition date. The ratio decrease is also attributable to improvements in overall loan quality for the legacy Pinnacle portfolio. The ratio of the allowance for loan losses to nonperforming loans was 222.9 percent at Dec. 31, 2015, compared to 212.2 percent at Sept. 30, 2015 and 403.2 percent at Dec. 31, 2014. -- Net charge-offs were $3.8 million for the quarter ended Dec. 31, 2015, compared to $4.0 million for the third quarter of 2015 and $842,000 for the quarter ended Dec. 31, 2014. Annualized net charge-offs as a percentage of average loans for the quarter ended Dec. 31, 2015 were 0.21 percent, compared to 0.10 percent for the quarter ended Dec. 31, 2014.

-- Provision for loan losses increased to $5.5 million in the fourth quarter of 2015 from $2.2 million in the third quarter of 2015 and $2.0 million in the fourth quarter of 2014.

BOARD OF DIRECTORS DECLARES DIVIDEND

On Jan. 19, 2016, Pinnacle’s Board of Directors increased the quarterly cash dividend to $0.14 per common share to be paid on Feb. 26, 2016 to common shareholders of record as of the close of business on Feb. 5, 2016. The amount and timing of any future dividend payments to common shareholders will be subject to the discretion of Pinnacle’s Board of Directors.

WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. (CST) on Jan. 20, 2016 to discuss fourth quarter 2015 results and other matters. To access the call for audio only, please call 1-877-602-7944. 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. Pinnacle’s focus begins in recruiting top financial professionals. The American Banker recognized Pinnacle as the third best bank to work for in the country in 2015.

The firm began operations in a single downtown Nashville location in October 2000 and has since grown to more than $8.7 billion in assets at Dec. 31, 2015. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in the state’s four largest markets, Nashville, Memphis, Knoxville and Chattanooga, as well as several surrounding counties.

Additional information concerning Pinnacle, which is included in the NASDAQ Financial-100 Index, can be accessed at www.pnfp.com.

FORWARD-LOOKING STATEMENTS

Certain of the statements in this press release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," "anticipate," "goal," "objective," "intend," "plan," "believe," "should," "hope," "pursue," "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. All forward-looking statements are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Pinnacle Financial to differ materially from any results expressed or implied by such forward-looking statements. Such risks include, without limitation, (i) failure of the closing conditions to Pinnacle Financial’s additional investment in BHG to be satisfied; (ii) Pinnacle Bank’s inability to issue debt financing in connection with its investment in BHG in amounts and on terms acceptable to it; (iii) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (iv) continuation of the historically low short-term interest rate environment; (v) 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 subsidiaries’, loan portfolio; (vi) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (vii) effectiveness of Pinnacle Financial’s asset management activities in improving, resolving or liquidating lower-quality assets; (viii) increased competition with other financial institutions; (ix) 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; (x) rapid fluctuations or unanticipated changes in interest rates on loans or deposits; (xi) the results of regulatory examinations; (xii) the ability to retain large, uninsured deposits; (xiii) the development of any new market other than the Nashville, Knoxville, Chattanooga or Memphis MSAs; (xiv) a merger or acquisition; (xv) risks of expansion into new geographic or product markets, like the expansion into the Chattanooga and Memphis MSAs; (xvi) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including intangible assets; (xvii) reduced ability to attract additional financial advisors (or failure of such advisors to cause their clients to switch to Pinnacle Financial), to retain financial advisors (including those at CapitalMark Bank & Trust and Magna Bank) or otherwise to attract customers from other financial institutions; (xviii) further deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xix) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital maintenance levels; (xx) risks associated with litigation, including the applicability of insurance coverage; (xxi) the risk that the cost savings and any revenue synergies from the mergers with CapitalMark and Magna may not be realized or take longer than anticipated to be realized; (xxii) disruption from the CapitalMark and Magna mergers with customers, suppliers or employee relationships; (xxiii) the risk of successful integration of CapitalMark’s and Magna’s business with ours; (xxiv) the amount of the costs, fees, expenses and charges related to the CapitalMark and Magna mergers; (xxv) reputational risk and the reaction of Pinnacle Financial’s, CapitalMark’s and Magna’s customers to the CapitalMark and Magna mergers; (xxvi) the risk that the integration of CapitalMark’s and Magna’s operations with Pinnacle Financial’s will be materially delayed or will be more costly or difficult than expected; (xxvii) approval of the declaration of any dividend by Pinnacle Financial’s board of directors; (xxviii) the vulnerability of our network and online banking portals to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xxix) the possibility of increased compliance costs as a result of increased regulatory oversight, including oversight of companies in which Pinnacle Financial has significant investments, and the development of additional banking products for our corporate and consumer clients; (xxx) the risks associated with our being a minority investor in Bankers Healthcare Group, LLC, including the risk that the owners of a majority of the equity interests in Bankers Healthcare Group decide to sell the company if not prohibited from doing so by the terms of our agreement with them; and (xxxi) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy, including implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. A more detailed description of these and other risks is contained herein and in Pinnacle Financial’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission on February 25, 2015 and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission on May 8, 2015, August 7, 2015 and November 9, 2015. Many of such factors are beyond Pinnacle Financial’s ability to control or predict, and readers are cautioned not to put undue reliance on such forward-looking statements. Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this report, whether as a result of new information, future events or otherwise.

 
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
====================================================================================================================================================================================================================================
                                                                                                                                                                                                 
                                                                           December 31, 2015                                          September 30, 2015                                           December 31, 2014
--------------------------------------------------------------------- -------------------- -------------------- ---------------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------------- -------------------- --------------------------------------------------------
ASSETS
---------------------------------------------------------------------
Cash and noninterest-bearing due from banks                                                                                        $    75,078,807                                                                                   $    68,595,726                                                                                   $    48,741,692
Interest-bearing due from banks                                                                                                        219,202,464                                                                                       245,289,355                                                                                       134,176,054
Federal funds sold and other                                                                                         26,670,062            13,153,196             4,989,764  
                                                                                                                -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ------------- --------------------
    Cash and cash equivalents                                                                                                          320,951,333                                                                                       327,038,277                                                                                       187,907,510
                                                                                                                                                                                                                                                                                                                     
Securities available-for-sale, at fair value                                                                                           935,064,745                                                                                       972,295,754                                                                                       732,054,785
Securities held-to-maturity (fair value of $31,585,303,                                                                                 31,376,840                                                                                        31,698,000                                                                                        38,675,527
$31,850,119, and $38,788,870 at December 31, 2015, September 30,
2015 and December 31, 2014, respectively)
Residential mortgage loans held-for-sale                                                                                                47,930,253                                                                                        47,671,890                                                                                        14,038,914
Commercial loans held-for-sale                                                                                                                   -                                                                                        20,236,426                                                                                                 -
                                                                                                                                                                                                                                                                                                                     
Loans                                                                                                                                6,543,235,381                                                                                     6,335,988,628                                                                                     4,590,026,505
Less allowance for loan losses                                                                                      (65,432,354 )                            (63,758,390 )                            (67,358,639 )
                                                                                                                -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ------------- --------------------
    Loans, net                                                                                                                       6,477,803,027                                                                                     6,272,230,238                                                                                     4,522,667,866
                                                                                                                                                                                                                                                                                                                     
Premises and equipment, net                                                                                                             77,923,607                                                                                        81,527,013                                                                                        71,576,016
Equity method investment                                                                                                                88,880,014                                                                                        81,763,986                                                                                                 -
Accrued interest receivables                                                                                                            21,574,096                                                                                        21,510,180                                                                                        16,988,407
Goodwill                                                                                                                               430,687,015                                                                                       429,415,765                                                                                       243,529,010
Core deposit and other intangible assets                                                                                                10,540,497                                                                                        11,640,802                                                                                         2,893,072
Other real estate owned                                                                                                                  5,083,218                                                                                         4,772,567                                                                                        11,186,414
Other assets                                                                                                        261,140,952           247,262,954           176,730,276  
                                                                                                                -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ------------- --------------------
    Total assets                                                                                                                   $ 8,708,955,597                          $ 8,549,063,852                          $ 6,018,247,797  
                                                                                                                ==================== ============= ==================== ==================== ==================== ==================== ============= ==================== ==================== ==================== ==================== ============= ====================
                                                                                                                                                                                                                                                                                                                     
LIABILITIES AND STOCKHOLDERS’ EQUITY
---------------------------------------------------------------------
Deposits:
    Noninterest-bearing                                                                                                            $ 1,889,865,113                                                                                   $ 1,876,910,141                                                                                   $ 1,321,053,083
    Interest-bearing                                                                                                                 1,389,548,175                                                                                     1,293,247,497                                                                                     1,005,450,690
    Savings and money market accounts                                                                                                3,001,950,725                                                                                     2,691,218,826                                                                                     2,024,957,383
    Time                                                                                                            690,049,795           739,302,052           431,143,756  
                                                                                                                -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ------------- --------------------
         Total deposits                                                                                                              6,971,413,808                                                                                     6,600,678,516                                                                                     4,782,604,912
Securities sold under agreements to repurchase                                                                                          79,084,298                                                                                        68,077,412                                                                                        93,994,730
Federal Home Loan Bank advances                                                                                                        300,305,226                                                                                       545,329,689                                                                                       195,476,384
Subordinated debt and other borrowings                                                                                                 142,476,000                                                                                       142,476,000                                                                                        96,158,292
Accrued interest payable                                                                                                                 2,593,209                                                                                         1,703,146                                                                                           631,682
Other liabilities                                                                                                    57,471,756            56,573,535            46,688,416  
                                                                                                                -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ------------- --------------------
    Total liabilities                                                                                                                7,553,344,297                                                                                     7,414,838,298                                                                                     5,215,554,416
                                                                                                                                                                                                                                                                                                                     
Stockholders’ equity:
Preferred stock, no par value; 10,000,000 shares authorized; no                                                                                  -                                                                                                 -                                                                                                 -
shares issued and outstanding
Common stock, par value $1.00; 90,000,000 shares authorized;                                                                            40,906,064                                                                                        40,802,904                                                                                        35,732,483
40,906,064 shares, 40,802,904 shares, and 35,732,483 shares issued
and outstanding at December 31, 2015, September 30, 2015, and
December 31, 2014, respectively
Additional paid-in capital                                                                                                             839,617,050                                                                                       835,279,986                                                                                       561,431,449
Retained earnings                                                                                                                      278,573,408                                                                                       256,648,129                                                                                       201,371,081
Accumulated other comprehensive (loss) income, net of taxes                                                          (3,485,222 )                              1,494,535             4,158,368  
                                                                                                                -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ------------- --------------------
    Stockholders’ equity                                                               1,155,611,300         1,134,225,554           802,693,381  
                                                                                                                -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ------------- --------------------
Total liabilities and stockholders’ equity                                                              $ 8,708,955,597                          $ 8,549,063,852                          $ 6,018,247,797  
                                                                                                                ==================== ============= ==================== ==================== ==================== ==================== ============= ==================== ==================== ==================== ==================== ============= ====================
                                                                                                                                                                                                                                                                                                                     
This information is preliminary and based on company data available
at the time of the presentation.
                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                  
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
====================================================================================================================================================================================================================================
                                                        
                                                                                                                                                                                                               Three Months Ended                                                                                                                                                                                                                      Year Ended
                                                                                                                   December 31,                                             September 30,                                            December 31,                                                                                                                         December 31,
                                                              2015                                                     2015                                                     2014                                                      2015                                           2014
---------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------------------- -------------------- ------------------------------------------------------------------------- -------------------- ------------------------------------------------------------------------- -------------------- -------------------------------------------------------------------------- -------------------- ---------------------------------
Interest income:
Loans, including fees                                                                                             $ 71,601,444                                                                                   $ 61,453,541                                                                                   $ 48,352,675                                                                                   $ 232,847,334                                                                                   $ 184,648,800
Securities
    Taxable                                                                                                          4,201,602                                                                                      3,953,948                                                                                      3,409,318                                                                                      15,060,392                                                                                      14,227,172
    Tax-exempt                                                                                                       1,482,703                                                                                      1,416,954                                                                                      1,472,826                                                                                       5,783,443                                                                                       6,167,264
Federal funds sold and other                                                                        510,776            367,671            298,391           1,478,711           1,126,726
                                                                                               -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- -------------------- -----------
    Total interest income                                                                        77,796,525         67,192,114         53,533,210         255,169,880         206,169,962
                                                                                               -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- -------------------- -----------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Interest expense:
Deposits                                                                                                             4,599,159                                                                                      3,587,048                                                                                      2,441,502                                                                                      13,209,425                                                                                       9,953,930
Securities sold under agreements to repurchase                                                                          38,622                                                                                         39,437                                                                                         40,077                                                                                         138,347                                                                                         140,623
Federal Home Loan Bank advances and other borrowings                                              1,683,994          1,506,528            738,359           5,189,193           3,090,860
                                                                                               -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- -------------------- -----------
    Total interest expense                                                                        6,321,775          5,133,013          3,219,938          18,536,965          13,185,413
                                                                                               -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- -------------------- -----------
    Net interest income                                                                                             71,474,750                                                                                     62,059,101                                                                                     50,313,272                                                                                     236,632,915                                                                                     192,984,549
Provision for loan losses                                                                         5,459,353          2,227,937          2,041,480           9,188,497           3,634,660
                                                                                               -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- -------------------- -----------
Net interest income after provision for loan losses                                                                 66,015,397                                                                                     59,831,164                                                                                     48,271,792                                                                                     227,444,418                                                                                     189,349,889
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Noninterest income:
    Service charges on deposit accounts                                                                              3,499,480                                                                                      3,258,058                                                                                      3,038,045                                                                                      12,745,742                                                                                      11,707,274
    Investment services                                                                                              2,786,839                                                                                      2,525,980                                                                                      2,737,308                                                                                       9,971,313                                                                                       9,382,670
    Insurance sales commissions                                                                                      1,102,747                                                                                      1,102,859                                                                                      1,045,748                                                                                       4,824,007                                                                                       4,612,583
    Gains on mortgage loans sold, net                                                                                2,180,864                                                                                      1,894,731                                                                                      1,373,920                                                                                       7,668,960                                                                                       5,630,371
    Investment gains on sales, net                                                                                      (9,954 )                                                                                            -                                                                                              -                                                                                         552,063                                                                                          29,221
    Trust fees                                                                                                       1,481,818                                                                                      1,437,039                                                                                      1,274,159                                                                                       5,461,257                                                                                       4,601,036
                                                                                                                     7,839,028                                                                                      5,285,000                                                                                              -                                                                                      20,591,484                                                                                               -
    Income from equity method investment
    Other noninterest income                                                                      7,726,952          5,906,747          4,915,039          24,715,442          16,639,323
                                                                                               -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- -------------------- -----------
         Total noninterest income                                                                26,607,774         21,410,414         14,384,219          86,530,268          52,602,478
                                                                                               -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- -------------------- -----------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Noninterest expense:
    Salaries and employee benefits                                                                                  30,877,853                                                                                     27,745,643                                                                                     23,075,475                                                                                     105,928,914                                                                                      88,319,567
    Equipment and occupancy                                                                                          8,384,525                                                                                      6,932,758                                                                                      5,983,877                                                                                      27,241,477                                                                                      24,087,335
    Other real estate, net                                                                                              99,394                                                                                       (686,071 )                                                                                     (630,066 )                                                                                      (305,956 )                                                                                       664,289
    Marketing and other business development                                                                         1,465,122                                                                                      1,252,270                                                                                      1,208,253                                                                                       4,863,307                                                                                       4,127,949
    Postage and supplies                                                                                             1,052,427                                                                                        795,403                                                                                        717,323                                                                                       3,228,300                                                                                       2,391,838
    Amortization of intangibles                                                                                        916,581                                                                                        602,545                                                                                        236,164                                                                                       1,973,953                                                                                         947,678
    Merger related expenses                                                                                          2,489,396                                                                                      2,248,569                                                                                              -                                                                                       4,797,018                                                                                               -
    Other noninterest expense                                                                     6,906,131          6,215,863          3,801,319          23,149,743          15,761,027
                                                                                               -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- -------------------- -----------
         Total noninterest expense                                                               52,191,429         45,106,980         34,392,345         170,876,756         136,299,683
                                                                                               -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- -------------------- -----------
Income before income taxes                                                                                          40,431,742                                                                                     36,134,598                                                                                     28,263,666                                                                                     143,097,930                                                                                     105,652,684
    Income tax expense                                                                           13,577,634         11,985,846          9,526,428          47,588,528          35,181,517
                                                                                               -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- -------------------- -----------
Net income                                                                                                        $ 26,854,108                          $ 24,148,752                          $ 18,737,238                          $  95,509,402                          $  70,471,167
                                                                                               ==================== ========== ==================== ==================== ==================== ==================== ========== ==================== ==================== ==================== ==================== ========== ==================== ==================== ==================== ==================== =========== ==================== ==================== ==================== ==================== ===========
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Per share information:
    Basic net income per common share                                                                             $       0.67                          $       0.64                          $       0.54                          $        2.58                          $        2.03
                                                                                               ==================== ========== ==================== ==================== ==================== ==================== ========== ==================== ==================== ==================== ==================== ========== ==================== ==================== ==================== ==================== =========== ==================== ==================== ==================== ==================== ===========
    Diluted net income per common share                                                                           $       0.65                          $       0.62                          $       0.53                          $        2.52                          $        2.01
                                                                                               ==================== ========== ==================== ==================== ==================== ==================== ========== ==================== ==================== ==================== ==================== ========== ==================== ==================== ==================== ==================== =========== ==================== ==================== ==================== ==================== ===========
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
    Weighted average shares outstanding:
         Basic                                                                                                      40,000,102                                                                                     37,828,329                                                                                     34,827,999                                                                                      37,015,468                                                                                      34,723,335
         Diluted                                                                                                    41,015,154                                                                                     38,792,787                                                                                     35,292,319                                                                                      37,973,788                                                                                      35,126,890
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
This information is preliminary and based on company data available
at the time of the presentation.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED
====================================================================================================================================================================================================================================
                                                                                                                                                                                                                                                                                 
                                                                                                                                              
-------------------------------------------------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- --------------------------------
(dollars in thousands)                                                                                                               December                                                                             September                                                                   June                                                                      March                                                                   December                                                                  September
                                                                                               2015                                           2015                                2015                                2015                                2014                                2014
-------------------------------------------------------------------- -------------------- ------------------------------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- --------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Balance sheet data, at quarter end:
  Commercial real estate - mortgage loans                                                                                         $  2,275,483                                                                 2,192,151                                                                 1,671,729                                                                 1,560,683                                                                 1,544,091                                                                 1,478,869
  Consumer real estate - mortgage loans                                                                                              1,046,517                                                                 1,044,276                                                                   740,641                                                                   723,907                                                                   721,158                                                                   706,801
  Construction and land development loans                                                                                              747,697                                                                   674,926                                                                   372,004                                                                   324,462                                                                   322,466                                                                   322,090
  Commercial and industrial loans                                                                                                    2,228,542                                                                 2,178,535                                                                 1,819,600                                                                 1,810,818                                                                 1,784,729                                                                 1,724,086
  Consumer and other                                                                                                                   244,996                                                                   246,101                                                                   226,380                                                                   225,402                                                                   217,583                                                                   189,405
    Total loans                                                                                                                      6,543,235                                                                 6,335,989                                                                 4,830,354                                                                 4,645,272                                                                 4,590,027                                                                 4,421,251
  Allowance for loan losses                                                                                                            (65,432 )                                                                 (63,758 )                                                                 (65,572 )                                                                 (66,242 )                                                                 (67,359 )                                                                 (66,160 )
  Securities                                                                                                                           966,442                                                                 1,003,994                                                                   840,136                                                                   808,294                                                                   770,730                                                                   753,028
  Total assets                                                                                                                       8,708,956                                                                 8,544,799                                                                 6,516,544                                                                 6,314,346                                                                 6,018,248                                                                 5,865,703
  Noninterest-bearing deposits                                                                                                       1,889,865                                                                 1,876,910                                                                 1,473,086                                                                 1,424,971                                                                 1,321,053                                                                 1,357,934
  Total deposits                                                                                                                     6,971,414                                                                 6,600,679                                                                 4,993,611                                                                 4,789,309                                                                 4,782,605                                                                 4,662,331
  Securities sold under agreements to repurchase                                                                                        79,084                                                                    68,077                                                                    61,549                                                                    68,053                                                                    93,995                                                                    64,773
  FHLB advances                                                                                                                        300,305                                                                   545,330                                                                   445,345                                                                   455,444                                                                   195,476                                                                   215,524
  Subordinated debt and other borrowings                                                                                               142,476                                                                   142,476                                                                   133,908                                                                   135,533                                                                    96,158                                                                    96,783
  Total stockholders’ equity                                                                              1,155,611                                                                 1,134,226                                                                   841,390                                                                   824,151                                                                   802,693                                                                   781,934
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Balance sheet data, quarterly averages:
  Total loans                                                                                                                     $  6,457,870                                                                 5,690,246                                                                 4,736,818                                                                 4,624,952                                                                 4,436,411                                                                 4,358,473
  Securities                                                                                                                         1,002,291                                                                   925,506                                                                   836,425                                                                   788,550                                                                   760,328                                                                   767,895
  Total earning assets                                                                                                               7,759,053                                                                 6,844,784                                                                 5,764,514                                                                 5,581,508                                                                 5,382,479                                                                 5,264,591
  Total assets                                                                                                                       8,565,341                                                                 7,514,633                                                                 6,319,712                                                                 6,102,523                                                                 5,855,421                                                                 5,752,776
  Noninterest-bearing deposits                                                                                                       1,948,703                                                                 1,689,599                                                                 1,437,276                                                                 1,342,603                                                                 1,373,745                                                                 1,317,091
  Total deposits                                                                                                                     6,786,931                                                                 5,898,369                                                                 4,884,506                                                                 4,791,944                                                                 4,758,402                                                                 4,655,047
  Securities sold under agreements to repurchase                                                                                        72,854                                                                    71,329                                                                    61,355                                                                    66,505                                                                    82,970                                                                    66,429
  FHLB advances                                                                                                                        376,512                                                                   393,825                                                                   388,963                                                                   290,016                                                                    95,221                                                                   135,920
  Subordinated debt and other borrowings                                                                                               142,660                                                                   147,619                                                                   135,884                                                                   121,033                                                                    96,722                                                                   100,404
  Total stockholders’ equity                                                                              1,153,681                                                                   986,325                                                                   836,791                                                                   815,706                                                                   796,338                                                                   774,032
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Statement of operations data, for the three months ended:
  Interest income                                                                                                                 $     77,797                                                                    67,192                                                                    55,503                                                                    54,679                                                                    53,533                                                                    52,782
  Interest expense                                                                                                    6,322            5,133            3,672            3,410            3,220            3,245  
                                                                                                               -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
    Net interest income                                                                                                                 71,475                                                                    62,059                                                                    51,831                                                                    51,269                                                                    50,313                                                                    49,537
  Provision for loan losses                                                                                           5,459            2,228            1,186              315            2,041              851  
                                                                                                               -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
    Net interest income after provision for loan losses                                                                                 66,016                                                                    59,831                                                                    50,645                                                                    50,954                                                                    48,272                                                                    48,686
  Noninterest income                                                                                                                    26,608                                                                    21,410                                                                    20,019                                                                    18,493                                                                    14,384                                                                    12,888
  Noninterest expense                                                                                                52,191           45,107           36,747           36,830           34,391           34,360  
                                                                                                               -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
    Income before taxes                                                                                                                 40,433                                                                    36,134                                                                    33,917                                                                    32,617                                                                    28,264                                                                    27,215
  Income tax expense                                                                                                 13,578           11,985           11,252           10,774            9,527            9,018  
                                                                                                               -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
      Net income                                                                                                                  $     26,855           24,149           22,665           21,843           18,737           18,197  
                                                                                                               ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Profitability and other ratios:
                                                                                                                                          1.24 %                                                                    1.27 %                                                                    1.44 %                                                                    1.45 %                                                                    1.27 %                                                                    1.25 %
    Return on avg. assets (1)
                                                                                                                                          9.24 %                                                                    9.71 %                                                                   10.86 %                                                                   10.86 %                                                                    9.33 %                                                                    9.33 %
    Return on avg. equity (1)
                                                                                                                                         14.97 %                                                                   14.49 %                                                                   15.39 %                                                                   15.56 %                                                                   13.52 %                                                                   13.69 %
    Return on avg. tangible common equity (1)
                                                                                                                                         18.97 %                                                                   19.92 %                                                                   20.78 %                                                                   22.22 %                                                                   16.67 %                                                                   17.58 %
    Dividend payout ratio (18)
                                                                                                                                          3.73 %                                                                    3.66 %                                                                    3.65 %                                                                    3.78 %                                                                    3.76 %                                                                    3.79 %
    Net interest margin (1) (2)
                                                                                                                                         27.13 %                                                                   25.65 %                                                                   27.86 %                                                                   26.51 %                                                                   22.23 %                                                                   20.65 %
    Noninterest income to total revenue (3)
                                                                                                                                          1.23 %                                                                    1.13 %                                                                    1.27 %                                                                    1.23 %                                                                    0.97 %                                                                    0.89 %
    Noninterest income to avg. assets (1)
                                                                                                                                          2.42 %                                                                    2.38 %                                                                    2.33 %                                                                    2.45 %                                                                    2.33 %                                                                    2.37 %
    Noninterest exp. to avg. assets (1)
                                                                                                                                          2.30 %                                                                    2.30 %                                                                    2.31 %                                                                    2.42 %                                                                    2.37 %                                                                    2.34 %
    Noninterest expense (excluding ORE, FHLB prepayment charges, and
    merger related expense) to avg. assets (1)
                                                                                                                                         53.21 %                                                                   54.04 %                                                                   51.14 %                                                                   52.79 %                                                                   53.16 %                                                                   55.04 %
    Efficiency ratio (4)
    Avg. loans to average deposits                                                                                                       95.15 %                                                                   96.47 %                                                                   96.98 %                                                                   96.52 %                                                                   93.23 %                                                                   93.63 %
    Securities to total assets                                                                                                           11.10 %                                                                   11.75 %                                                                   12.89 %                                                                   12.80 %                                                                   12.81 %                                                                   12.84 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
This information is preliminary and based on company data available
at the time of the presentation.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND
YIELDS-UNAUDITED
====================================================================================================================================================================================================================================
                                                                                                                                                                                                                            
(dollars in thousands)                                                                                                                                                   Three months ended                                                                                                                                                                                                     Three months ended
                                                                                                                                  December 31, 2015                                                                                                                                                                December 31, 2014
-------------------------------------------------- -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         Average                          Interest                      Rates/ Yields                       Average                          Interest                        Rates/ Yields
                                                                                                        Balances                                                                                                                                                                                                             Balances
                                                                                             -----------------------------  -------------------- -------------------- --------------------------  -------------------- -------------------- --------------------------  -------------------- -------------------- -----------------------------  -------------------- -------------------- --------------------------  -------------------- -------------------- ------------------------------
Interest-earning assets
  Loans (1)                                                                                                     $ 6,457,870                                                              $ 71,601                                             4.46 %                                                                                 $ 4,436,411                                                              $ 48,353                                                 4.34 %
  Securities
    Taxable                                                                                                         818,780                                                                 4,202                                             2.04 %                                                                                     594,681                                                                 3,409                                                 2.27 %
    Tax-exempt (2)                                                                                                  183,511                                                                 1,483                                             4.29 %                                                                                     165,647                                                                 1,473                                                 4.71 %
  Federal funds sold and other                                                                   298,892          511       0.68 %                            185,740          298           0.75 %
                                                                                             -------------------- --------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---------- --------------------
    Total interest-earning assets                                                                                 7,759,053                                                              $ 77,797       4.01 %                                                                                   5,382,479                                                              $ 53,533           4.00 %
                                                                                                                                                                      -------------------- ------ -------------------- -------------------- ------ --------------------                                                                                                                    -------------------- ------ -------------------- -------------------- ---------- --------------------
Nonearning assets
  Intangible assets                                                                                                 441,835                                                                                                                                                                                                              246,571
  Other nonearning assets                                                                        364,453                                                                                                                                                                                           226,371
                                                                                             -------------------- ---------                                                                                                                                                                                       -------------------- ---------
  Total assets                                                                                                  $ 8,565,341                                                                                                                                                                                                          $ 5,855,421
                                                                                             ==================== =========                                                                                                                                                                                       ==================== =========
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
Interest-bearing liabilities
  Interest-bearing deposits:
    Interest checking                                                                                           $ 1,321,587                                                              $    826                                             0.25 %                                                                                 $   901,774                                                              $    380                                                 0.17 %
    Savings and money market                                                                                      2,809,146                                                                 2,674                                             0.38 %                                                                                   2,037,737                                                                 1,466                                                 0.29 %
    Time                                                                                         707,495        1,099       0.62 %                            445,146          596           0.53 %
                                                                                             -------------------- --------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---------- --------------------
         Total interest-bearing deposits                                                                          4,838,228                                                                 4,599                                             0.38 %                                                                                   3,384,657                                                                 2,442                                                 0.29 %
    Securities sold under agreements to repurchase                                                                   72,854                                                                    39                                             0.21 %                                                                                      82,970                                                                    40                                                 0.19 %
    Federal Home Loan Bank advances                                                                                 376,512                                                                   400                                             0.42 %                                                                                      95,221                                                                   133                                                 0.56 %
    Subordinated debt and other borrowings                                                       142,660        1,284       3.57 %                             96,722          605           2.48 %
                                                                                             -------------------- --------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---------- --------------------
         Total interest-bearing liabilities                                                                       5,430,254                                                                 6,322                                             0.46 %                                                                                   3,659,570                                                                 3,220                                                 0.35 %
Noninterest-bearing deposits                                                                   1,948,703            -          -         1,373,745            -              -  
                                                                                             -------------------- --------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---------- --------------------
  Total deposits and interest-bearing liabilities                                                                 7,378,957                                                              $  6,322       0.34 %                                                                                   5,033,315                                                              $  3,220           0.25 %
                                                                                                                                                                      -------------------- ------ -------------------- -------------------- ------ --------------------                                                                                                                    -------------------- ------ -------------------- -------------------- ---------- --------------------
  Other liabilities                                                                                                  32,703                                                                                                                                                                                                               25,768
Stockholders’ equity                                                                           1,153,681                                                                                                                                                                                           796,338
                                                                                             -------------------- ---------                                                                                                                                                                                       -------------------- ---------
  Total liabilities and stockholders’ equity                                                                    $ 8,565,341                                                                                                                                                                                                          $ 5,855,421
                                                                                             ==================== =========                                                                                                                                                                                       ==================== =========
Net interest income                                                                                                                                                                      $ 71,475                                                                                                                                                                                                             $ 50,313
                                                                                                                                                                      ==================== ======                                                                                                                                                                                          ==================== ======
  Net interest spread (3)                                                                                                                                                                                                                     3.55 %                                                                                                                                                                                                                   3.65 %
  Net interest margin (4)                                                                                                                                                                                                                     3.73 %                                                                                                                                                                                                                   3.76 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 
--------------------------------------------------
(1) Average balances of nonperforming loans are included in the
above amounts.
(2) Yields computed on tax-exempt instruments on a tax equivalent
basis.
(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
quarter ended December 31, 2015 would have been 3.67% compared to a
net interest spread of 3.74% for the quarter ended December 31, 2014.
(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.
                                                                                                                                                                                                                                                                                                                                                                                                                               
 
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND
YIELDS-UNAUDITED
====================================================================================================================================================================================================================================
                                                                                                                                                                                                                              
(dollars in thousands)                                                                                                                                                        Year ended                                                                                                                                                                                                              Year ended
                                                                                                                                   December 31, 2015                                                                                                                                                                 December 31, 2014
-------------------------------------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ -------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         Average                          Interest                       Rates/ Yields                       Average                          Interest                         Rates/ Yields
                                                                                                        Balances                                                                                                                                                                                                              Balances
                                                                                             -----------------------------  -------------------- -------------------- ---------------------------  -------------------- -------------------- --------------------------  -------------------- -------------------- -----------------------------  -------------------- -------------------- ---------------------------  -------------------- -------------------- ------------------------------
Interest-earning assets
  Loans (1)                                                                                                     $ 5,394,775                                                              $ 232,847                                             4.39 %                                                                                 $ 4,295,283                                                              $ 184,649                                                 4.31 %
  Securities
    Taxable                                                                                                         721,829                                                                 15,060                                             2.09 %                                                                                     594,223                                                                 14,227                                                 2.39 %
    Tax-exempt (2)                                                                                                  167,091                                                                  5,783                                             4.63 %                                                                                     170,617                                                                  6,167                                                 4.83 %
  Federal funds sold and other                                                                   223,732         1,479       0.66 %                            155,585         1,127           0.86 %
                                                                                             -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
    Total interest-earning assets                                                                                 6,507,427                                                              $ 255,169       3.96 %                                                                                   5,215,708                                                              $ 206,170           4.01 %
                                                                                                                                                                      -------------------- ------- -------------------- -------------------- ------ --------------------                                                                                                                    -------------------- ------- -------------------- -------------------- ---------- --------------------
Nonearning assets
  Intangible assets                                                                                                 315,366                                                                                                                                                                                                               246,956
  Other nonearning assets                                                                        310,628                                                                                                                                                                                            237,383
                                                                                             -------------------- ---------                                                                                                                                                                                        -------------------- ---------
  Total assets                                                                                                  $ 7,133,421                                                                                                                                                                                                           $ 5,700,047
                                                                                             ==================== =========                                                                                                                                                                                        ==================== =========
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Interest-bearing liabilities
  Interest-bearing deposits:
    Interest checking                                                                                           $ 1,149,772                                                              $   2,487                                             0.22 %                                                                                 $   901,442                                                              $   1,566                                                 0.17 %
    Savings and money market                                                                                      2,298,746                                                                  7,701                                             0.34 %                                                                                   1,975,517                                                                  5,711                                                 0.29 %
    Time                                                                                         541,766         3,021       0.56 %                            477,902         2,677           0.56 %
                                                                                             -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
         Total interest-bearing deposits                                                                          3,990,284                                                                 13,209                                             0.33 %                                                                                   3,354,861                                                                  9,954                                                 0.30 %
    Securities sold under agreements to repurchase                                                                   68,037                                                                    138                                             0.20 %                                                                                      67,999                                                                    141                                                 0.21 %
    Federal Home Loan Bank advances                                                                                 362,668                                                                  1,175                                             0.32 %                                                                                     134,874                                                                    594                                                 0.44 %
    Subordinated debt and other borrowings                                                       136,888         4,015       2.93 %                             98,698         2,496           2.53 %
                                                                                             -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
         Total interest-bearing liabilities                                                                       4,557,877                                                                 18,537                                             0.41 %                                                                                   3,656,432                                                                 13,185                                                 0.36 %
Noninterest-bearing deposits                                                                   1,606,432             -          -         1,256,420             -              -  
                                                                                             -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
  Total deposits and interest-bearing liabilities                                                                 6,164,309                                                              $  18,537       0.30 %                                                                                   4,912,852                                                              $  13,185           0.27 %
                                                                                                                                                                      -------------------- ------- -------------------- -------------------- ------ --------------------                                                                                                                    -------------------- ------- -------------------- -------------------- ---------- --------------------
  Other liabilities                                                                                                  19,905                                                                                                                                                                                                                19,971
Stockholders’ equity                                                                             949,207                                                                                                                                                                                            767,224
                                                                                             -------------------- ---------                                                                                                                                                                                        -------------------- ---------
  Total liabilities and stockholders’ equity                                                                    $ 7,133,421                                                                                                                                                                                                           $ 5,700,047
                                                                                             ==================== =========                                                                                                                                                                                        ==================== =========
Net interest income                                                                                                                                                                      $ 236,632                                                                                                                                                                                                             $ 192,985
                                                                                                                                                                      ==================== =======                                                                                                                                                                                          ==================== =======
  Net interest spread (3)                                                                                                                                                                                                                      3.55 %                                                                                                                                                                                                                    3.65 %
  Net interest margin (4)                                                                                                                                                                                                                      3.72 %                                                                                                                                                                                                                    3.75 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 
--------------------------------------------------
(1) Average balances of nonperforming loans are included in the
above amounts.
(2) Yields computed on tax-exempt instruments on a tax equivalent
basis.
(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
year ended December 31, 2015 would have been 3.66% compared to a net
interest spread of 3.74% for the year ended December 31, 2014.
(4) Net interest margin is the result of 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.
                                                                                                                                                                                                                                                                                                                                                                                                                                
 
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED
====================================================================================================================================================================================================================================
                                                                                                                                                                                                                        
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(dollars in thousands)                                                                                                        December                                                                 September                                                        June                                                           March                                                        December                                                       September
                                                                                        2015                               2015                     2015                     2015                     2014                     2014
------------------------------------------------------------------ -------------------- -------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Asset quality information and ratios:
    Nonperforming assets:
        Nonaccrual loans                                                                                                        $               29,359                                                         30,049                                                         17,550                                                         16,915                                                         16,705                                                         21,652
        Other real estate (ORE) and other NPAs                                                                                6,990                    5,794                    8,239                    9,927                   11,873                   12,742
                                                                                                             -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
    Total nonperforming assets                                                                                                  $               36,349                   35,843                   25,789                   26,842                   28,578                   34,393
                                                                                                             ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ====================
                                                                                                                                $                1,768                                                          3,798                                                            483                                                          1,609                                                            322                                                             83
    Past due loans over 90 days and still accruing interest
                                                                                                                                $                8,088                                                          8,373                                                          8,703                                                          8,726                                                          8,410                                                          7,606
    Troubled debt restructurings (5)
    Net loan charge-offs                                                                                                        $                3,785                                                          4,041                                                          1,856                                                          1,432                                                            842                                                          1,580
    Allowance for loan losses to nonaccrual loans                                                                                               222.9%                                                         212.2%                                                         373.6%                                                         391.6%                                                         403.2%                                                         305.6%
    As a percentage of total loans:
      Past due accruing loans over 30 days                                                                                                       0.31%                                                          0.31%                                                          0.38%                                                          0.34%                                                          0.40%                                                          0.32%
                                                                                                                                                 1.61%                                                          1.44%                                                          1.86%                                                          1.97%                                                          1.81%                                                          1.98%
      Potential problem loans (6)
      Allowance for loan losses                                                                                                                  1.00%                                                          1.01%                                                          1.36%                                                          1.43%                                                          1.47%                                                          1.50%
    Nonperforming assets to total loans, ORE and other NPAs                                                                                      0.55%                                                          0.57%                                                          0.53%                                                          0.58%                                                          0.62%                                                          0.78%
    Nonperforming assets to total assets                                                                                                         0.42%                                                          0.42%                                                          0.37%                                                          0.40%                                                          0.46%                                                          0.58%
                                                                                                                                                 18.7%                                                          17.1%                                                          19.0%                                                          20.3%                                                          18.1%                                                          20.0%
    Classified asset ratio (Pinnacle Bank) (8)
                                                                                                                                                 0.21%                                                          0.20%                                                          0.14%                                                          0.13%                                                          0.10%                                                          0.11%
    Annualized net loan charge-offs year-to-date to avg. loans (7)
                                                                                                                                                   4.5                                                            4.5                                                            4.5                                                            4.5                                                            4.4                                                            4.5
    Wtd. avg. commercial loan internal risk ratings (6)
                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Interest rates and yields:
  Loans                                                                                                                                          4.46%                                                          4.33%                                                          4.27%                                                          4.35%                                                          4.34%                                                          4.34%
  Securities                                                                                                                                     2.45%                                                          2.51%                                                          2.56%                                                          2.79%                                                          2.81%                                                          2.85%
  Total earning assets                                                                                                                           4.01%                                                          3.93%                                                          3.91%                                                          4.02%                                                          4.00%                                                          4.03%
  Total deposits, including non-interest bearing                                                                                                 0.27%                                                          0.24%                                                          0.21%                                                          0.21%                                                          0.20%                                                          0.21%
  Securities sold under agreements to repurchase                                                                                                 0.21%                                                          0.22%                                                          0.19%                                                          0.19%                                                          0.19%                                                          0.23%
  FHLB advances                                                                                                                                  0.42%                                                          0.33%                                                          0.23%                                                          0.31%                                                          0.56%                                                          0.44%
  Subordinated debt and other borrowings                                                                                                         3.57%                                                          3.16%                                                          2.44%                                                          2.44%                                                          2.48%                                                          2.45%
  Total deposits and interest-bearing liabilities                                                                                                0.34%                                                          0.31%                                                          0.27%                                                          0.26%                                                          0.25%                                                          0.26%
                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Pinnacle Financial Partners capital ratios (8):
  Stockholders’ equity to total assets                                                                                13.3%                                                          13.3%                                                          12.9%                                                          13.1%                                                          13.3%                                                          13.3%
  Common equity Tier one capital                                                                                                                  8.6%                                                           8.7%                                                           9.4%                                                           9.4%                                                          10.6%                                                          10.6%
  Tier one risk-based                                                                                                                             9.6%                                                           9.8%                                                          10.8%                                                          10.8%                                                          12.1%                                                          12.2%
  Total risk-based                                                                                                                               11.3%                                                          11.4%                                                          12.0%                                                          12.0%                                                          13.4%                                                          13.4%
  Leverage                                                                                                                                        9.4%                                                          10.0%                                                          10.5%                                                          10.4%                                                          11.3%                                                          11.2%
  Tangible common equity to tangible assets                                                                                                       8.6%                                                           8.6%                                                           9.5%                                                           9.5%                                                           9.6%                                                           9.5%
  Pinnacle Bank ratios:
       Common equity Tier one                                                                                                                     9.0%                                                           9.1%                                                          10.1%                                                          10.0%                                                          11.4%                                                          11.5%
       Tier one risk-based                                                                                                                        9.0%                                                           9.1%                                                          10.1%                                                          10.1%                                                          11.4%                                                          11.5%
       Total risk-based                                                                                                                          10.6%                                                          10.8%                                                          11.2%                                                          11.3%                                                          12.6%                                                          12.8%
       Leverage                                                                                                                                   8.8%                                                           9.4%                                                           9.8%                                                           9.7%                                                          10.6%                                                          10.6%
                                                                                                                                                                                                                                                                                                                                                                                                                                                              
This information is preliminary and based on company data available
at the time of the presentation.
 
                                                                                                                                                                             
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED
====================================================================================================================================================================================================================================
                                                                                                                                                                                                                                                                                                                                                                                                                   
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(dollars in thousands, except per share data)                                                                          December                                                   September                                                  June                                                    March                                                  December                                                    September
                                                                2015                 2015               2015              2015               2014                  2014
------------------------------------------------------------------------ -------------------- -------------------- ------------------------------------- -------------------- ------------------------------------ -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ------------------------------------ -------------------- ---------------------
                                                                                                                                                                                                                                                                                                                                                                                                                   
Per share data:
   Earnings - basic                                                                                    $       0.67                                                    0.64                                                      0.65                                                    0.62                                                    0.54                                                      0.52
   Earnings - diluted                                                                                  $       0.65                                                    0.62                                                      0.64                                                    0.62                                                    0.53                                                      0.52
   Common dividends per share                                                                                       $       0.12                                                    0.12                                                      0.12                                                    0.12                                                    0.08                                                      0.08
                                                                                                                    $      28.25                                                   27.80                                                     23.39                                                   22.98                                                   22.45                                                     21.93
   Book value per common share at quarter end (9)
                                                                                                                                                                                                                                                                                                                                                                                                                   
   Weighted avg. common shares - basic                                                                   40,000,102                                              37,828,324                                                35,128,856                                              35,041,203                                              34,827,999                                                34,762,206
   Weighted avg. common shares - diluted                                                                 41,015,154                                              38,792,783                                                35,554,683                                              35,380,529                                              35,292,319                                                35,155,224
   Common shares outstanding                                                                                          40,906,064                                              40,802,904                                                35,977,987                                              35,864,667                                              35,732,483                                                35,654,541
                                                                                                                                                                                                                                                                                                                                                                                                                   
Investor information:
   Closing sales price                                                                                              $      51.36                                                   49.41                                                     54.37                                                   44.46                                                   39.54                                                     36.10
   High closing sales price during quarter                                                                          $      56.80                                                   55.18                                                     54.88                                                   45.19                                                   39.95                                                     39.75
   Low closing sales price during quarter                                                                           $      47.90                                                   45.03                                                     44.25                                                   35.52                                                   34.65                                                     35.21
                                                                                                                                                                                                                                                                                                                                                                                                                   
Other information:
   Gains on mortgage loans sold:
      Mortgage loan sales:
         Gross loans sold                                                                                           $    164,992                                                 145,751                                                   112,609                                                  95,782                                                  94,816                                                    96,050
                                                                                                                    $      3,612                                                   3,352                                                     2,791                                                   2,839                                                   2,256                                                     2,258
         Gross fees (10)
         Gross fees as a percentage of loans originated                                                                     2.19 %                                                  2.30 %                                                    2.48 %                                                  2.96 %                                                  2.38 %                                                    2.35 %
   Net gain on mortgage loans sold                                                                                  $      2,181                                                   1,895                                                     1,652                                                   1,941                                                   1,374                                                     1,353
                                                                                                                    $        (10 )                                                     -                                                       556                                                       6                                                       -                                                        29
   Investment gains on sales, net (17)
                                                                                                                    $  1,778,566                                               1,731,828                                                 1,783,062                                               1,739,669                                               1,695,238                                                 1,658,237
   Brokerage account assets, at quarter-end (11)
   Trust account managed assets, at quarter-end                                                                     $    862,699                                                 839,518                                                   924,605                                                 889,392                                                 764,802                                                   720,071
                                                                                                                    $  6,332,810                                               4,832,719                                                 4,608,648                                               4,412,635                                               4,381,177                                                 4,260,627
   Core deposits (12)
                                                                                                                            84.5 %                                                  82.8 %                                                    81.8 %                                                  81.0 %                                                  84.8 %                                                    84.6 %
   Core deposits to total funding (12)
   Risk-weighted assets                                                                                             $  7,849,814                                               7,425,629                                                 5,829,846                                               5,591,382                                               5,233,329                                                 5,049,592
   Total assets per full-time equivalent employee                                                                   $      8,228                                                   7,960                                                     8,141                                                   8,153                                                   7,877                                                     7,744
   Annualized revenues per full-time equivalent employee                                                            $      367.6                                                   308.5                                                     360.0                                                   365.3                                                   336.0                                                     327.0
   Annualized expenses per full-time equivalent employee                                                            $      195.6                                                   166.7                                                     184.1                                                   192.9                                                   178.6                                                     180.0
   Number of employees (full-time equivalent)                                                                            1,058.5                                                 1,073.5                                                     800.5                                                   774.5                                                   764.0                                                     757.5
                                                                                                                            92.9 %                                                  96.1 %                                                    94.7 %                                                  94.0 %                                                  93.3 %                                                    93.5 %
   Associate retention rate (13)
                                                                                                                                                                                                                                                                                                                                                                                                                   
Selected economic information (in thousands) (14):
   Nashville MSA nonfarm employment - November 2015                                                                        910.9                                                   908.0                                                     906.6                                                   890.9                                                   886.7                                                     884.7
   Knoxville MSA nonfarm employment -November 2015                                                                         389.4                                                   388.3                                                     387.8                                                   382.7                                                   381.5                                                     378.9
   Chattanooga MSA nonfarm employment - November 2015                                                                      245.0                                                   244.9                                                     245.4                                                   242.5                                                   240.7                                                     240.2
   Memphis MSA nonfarm employment - November 2015                                                                          619.7                                                   624.5                                                     621.8                                                   618.7                                                   617.5                                                     618.1
                                                                                                                                                                                                                                                                                                                                                                                                                   
   Nashville MSA unemployment - November 2015                                                                                4.7 %                                                   4.7 %                                                     4.6 %                                                   4.6 %                                                   5.2 %                                                     5.3 %
   Knoxville MSA unemployment -November 2015                                                                                 5.4 %                                                   5.4 %                                                     5.4 %                                                   5.3 %                                                   6.1 %                                                     6.2 %
   Chattanooga MSA unemployment - November 2015                                                                              5.6 %                                                   5.7 %                                                     5.6 %                                                   5.7 %                                                   6.3 %                                                     6.5 %
   Memphis MSA unemployment - November 2015                                                                                  6.4 %                                                   6.4 %                                                     6.5 %                                                   6.5 %                                                   7.4 %                                                     7.6 %
                                                                                                                                                                                                                                                                                                                                                                                                                   
   Nashville residential median home price - December 2015                                                          $      242.9                                                   236.9                                                     240.0                                                   222.4                                                   213.5                                                     211.4
                                                                                                                             7.1                                                     8.7                                                       9.2                                                     8.2                                                     7.6                                                       9.9
   Nashville inventory of residential homes for sale- December 2015 (16)
                                                                                                                                                                                                                                                                                                                                                                                                                   
This information is preliminary and based on company data available
at the time of the presentation.
                                                                                                                                                                                                                                                                                                                                                                                                                   
 
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA -
UNAUDITED
====================================================================================================================================================================================================================================
                                                                                                                                                                                                                                                                               
(dollars in thousands, except per share data)                                            December                           September                            June                               March                            December                            September
                                                                                                                                                    2015                                                                     2015                                                                     2015                                                                     2015                                                                     2014                                                                      2014
----------------------------------------------------------------------- -------------------- -------------------- -------------------- -----------------------------  -------------------- -------------------- -----------------------------  -------------------- -------------------- -----------------------------  -------------------- -------------------- -----------------------------  -------------------- -------------------- -----------------------------  -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
  Net interest income                                                                                                                $    71,475                                                                   62,059                                                                   51,831                                                                   51,269                                                                   50,313                                                                    49,537
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
  Noninterest income                                                                                                                      26,608                                                                   21,410                                                                   20,019                                                                   18,493                                                                   14,384                                                                    12,888
  Less: Investment gains on sales, net                                                                                     10               -            (556 )                               (6 )                                -              (29 )
                                                                                                                  -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                       26,618          21,410          19,463          18,487          14,384           12,859  
        Noninterest income excluding investment gains on sales, net
                                                                                                                  -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
  Total revenues excluding the impact of investment
     gains on sales, net                                                                                               98,093          83,469          71,294          69,756          64,697           62,396  
                                                                                                                  -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
  Noninterest expense                                                                                                                     52,191                                                                   45,107                                                                   36,747                                                                   36,830                                                                   34,391                                                                    34,360
  Less: Other real estate expense                                                                                                             99                                                                     (686 )                                                                   (115 )                                                                    395                                                                     (630 )                                                                     417
          FHLB prepayment charges                                                                                                              -                                                                        -                                                                      479                                                                        -                                                                        -                                                                         -
          Merger related expenses                                                                                       2,489           2,249              59               -               -                -  
                                                                                                                  -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                       49,603          43,544          36,324          36,435          35,021           33,942  
          Noninterest expense excluding the impact of other real estate
          expense, FHLB prepayment charges and merger related expenses
                                                                                                                  -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
  Adjusted pre-tax pre-provision income (15)                                                                                         $    48,490          39,925          34,970          33,322          29,676           28,454  
                                                                                                                  ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
  Efficiency Ratio (4)                                                                                                                      53.2 %                                                                   54.0 %                                                                   51.1 %                                                                   52.8 %                                                                   53.2 %                                                                    55.0 %
                                                                                                                         -2.6 %                             -1.9 %                             -0.2 %                             -0.6 %                              1.0 %                              -0.6 %
  Adjustment due to investment gains, ORE expense, FHLB prepayment
  charges and merger related expense
                                                                                                                  -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                         50.6 %                             52.2 %                             50.9 %                             52.2 %                             54.1 %                              54.4 %
  Efficiency Ratio (excluding investment gains, ORE expense, FHLB
  prepayment charges and merger related expenses)
                                                                                                                  ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
  Total average assets                                                                                                               $ 8,565,341       7,514,633       6,319,712       6,102,523       5,855,421        5,752,776  
                                                                                                                  ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                            2.30 %                                                                   2.30 %                                                                   2.31 %                                                                   2.42 %                                                                   2.37 %                                                                    2.34 %
  Noninterest expense (excluding ORE expense, FHLB prepayment
  charges and merger related expenses) to avg. assets (1)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
  Earnings per share excluding merger related expenses
  Net income                                                                                                                         $    26,854                                                                   24,149                                                                   22,665                                                                   21,843                                                                   18,737                                                                    18,197
  Merger related expenses                                                                                                                  2,489                                                                    2,249                                                                       59                                                                        -                                                                        -                                                                         -
  Tax effect on merger related expenses (19)                                                                             (977 )                             (882 )                              (23 )                                -               -                -  
                                                                                                                  -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
    Net income less merger related expenses                                                                                          $    28,366          25,516          22,701          21,843          18,737           18,197  
                                                                                                                  ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
  Basic earnings per share                                                                                                           $      0.67                                                                     0.64                                                                     0.65                                                                     0.62                                                                     0.54                                                                      0.52
  Adjustment to basic earnings per share due to merger related expenses                                                  0.04            0.03               -               -               -                -  
                                                                                                                  -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
  Basic earnings per share excluding merger related expenses                                                                         $      0.71            0.67            0.65            0.62            0.54             0.52  
                                                                                                                  ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
  Diluted earnings per share excluding merger related expenses                                                                       $      0.65                                                                     0.62                                                                     0.64                                                                     0.62                                                                     0.53                                                                      0.52
  Adjustment to diluted earnings per share due to merger related                                                         0.04            0.04               -               -               -                -  
  expenses
                                                                                                                  -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
  Diluted earnings per share excluding merger related expenses                                                                       $      0.69            0.66            0.64            0.62            0.53             0.52  
                                                                                                                  ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
This information is preliminary and based on company data available
at the time of the presentation.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA -
UNAUDITED
====================================================================================================================================================================================================================================
                                                                                                                                                                                                                                                                      
(dollars in thousands, except per share data)                                   December                           September                            June                               March                            December                            September
                                                                                                                                           2015                                                                     2015                                                                     2015                                                                     2015                                                                     2014                                                                      2014
-------------------------------------------------------------- -------------------- -------------------- -------------------- -----------------------------  -------------------- -------------------- -----------------------------  -------------------- -------------------- -----------------------------  -------------------- -------------------- -----------------------------  -------------------- -------------------- -----------------------------  -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
  Net income                                                                                                                $    26,854                                                                   24,149                                                                   22,665                                                                   21,843                                                                   18,737                                                                    18,197
  Merger related expenses                                                                                                         2,489                                                                    2,249                                                                       59                                                                        -                                                                        -                                                                         -
  Tax effect on merger related expenses                                                                         (977 )                             (882 )                              (23 )                                -               -                -  
                                                                                                         -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
    Net income less merger related expenses                                                                                 $    28,366          25,516          22,701          21,843          18,737           18,197  
                                                                                                         ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
  Return on average assets                                                                                                         1.24 %                                                                   1.27 %                                                                   1.44 %                                                                   1.45 %                                                                   1.27 %                                                                    1.25 %
  Adjustment due to merger related expenses                                                                     0.07 %                             0.07 %                             0.00 %                             0.00 %                             0.00 %                              0.00 %
                                                                                                         -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
  Return on average assets (excluding merger related expenses)                                                  1.31 %                             1.35 %                             1.44 %                             1.45 %                             1.27 %                              1.25 %
                                                                                                         ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
  Tangible assets:
    Total assets                                                                                                            $ 8,708,956                                                                8,549,064                                                                6,516,544                                                                6,314,346                                                                6,018,248                                                                 5,865,703
    Less: Goodwill                                                                                                             (430,687 )                                                               (429,416 )                                                               (243,291 )                                                               (243,443 )                                                               (243,529 )                                                                (243,533 )
          Core deposit and other intangible assets                                                           (10,540 )                          (11,641 )                           (2,438 )                           (2,666 )                           (2,893 )                            (3,129 )
                                                                                                         -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
    Net tangible assets                                                                                                     $ 8,267,729       8,108,007       6,270,815       6,068,237       5,771,826        5,619,041  
                                                                                                         ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
  Tangible equity:
    Total stockholders’ equity                                                                                              $ 1,155,611                                                                1,134,226                                                                  841,390                                                                  824,151                                                                  802,693                                                                   781,934
    Less: Goodwill                                                                                                             (430,687 )                                                               (425,151 )                                                               (243,291 )                                                               (243,443 )                                                               (243,529 )                                                                (243,533 )
          Core deposit and other intangible assets                                                           (10,540 )                          (11,641 )                           (2,438 )                           (2,666 )                           (2,893 )                            (3,129 )
                                                                                                         -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
    Net tangible common equity                                                                                              $   714,384         697,434         595,661         578,042         556,271          535,272  
                                                                                                         ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
  Ratio of tangible common equity to tangible assets                                                            8.64 %                             8.60 %                             9.50 %                             9.53 %                             9.64 %                              9.53 %
                                                                                                         ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
  Average tangible equity:
  Average stockholders’ equity                                                                                              $ 1,153,681                                                                  986,325                                                                  836,791                                                                  815,706                                                                  796,338                                                                   774,032
  Less: Average goodwill                                                                                                       (430,574 )                                                               (317,461 )                                                               (243,383 )                                                               (243,505 )                                                               (243,531 )                                                                (243,544 )
        Core deposit and other intangible assets                                                             (11,261 )                           (7,634 )                           (2,581 )                           (2,809 )                           (3,040 )                            (3,278 )
                                                                                                         -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
        Net average tangible common equity                                                                                  $   711,847         661,230         590,827         569,392         549,767          527,210  
                                                                                                         ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========= ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                  14.97 %                                                                  14.49 %                                                                  15.39 %                                                                  15.56 %                                                                  13.52 %                                                                   13.69 %
  Return on average tangible common equity (1)
  Adjustment due to merger related expenses                                                                     0.84 %                             0.82 %                             0.06 %                             0.00 %                             0.00 %                              0.00 %
                                                                                                         -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
  Return on average tangible common equity
  (excluding merger related expenses)                                                                          15.81 %                            15.31 %                            15.44 %                            15.56 %                            13.52 %                             13.69 %
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  Total average assets                                                                                                      $ 8,565,341       7,514,633       6,319,712       6,102,523       5,855,421        5,752,776  
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This information is preliminary and based on company data available
at the time of the presentation.
 
 
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. Troubled debt restructurings include loans where the company, as
a result of the borrower’s financial difficulties, has granted a
credit concession to the borrower (i.e., interest only payments for
a significant period of time, extending the maturity of the loan,
etc.). All of these loans continue to accrue interest at the
contractual rate.
6. Average risk ratings are based on an internal loan review system
which assigns a numeric value of 1 to 10 to all loans to commercial
entities based on their underlying risk characteristics as of the
end of each quarter. A "1" risk rating is assigned to credits that
exhibit Excellent risk characteristics, "2" exhibit Very Good risk
characteristics, "3" Good, "4" Satisfactory, "5" Acceptable or
Average, "6" Watch List, "7" Criticized, "8" Classified or
Substandard, "9" Doubtful and "10" Loss (which are charged-off
immediately). Additionally, loans rated "8" or worse that are not
nonperforming or restructured loans are considered potential problem
loans. Generally, consumer loans are not subjected to internal risk
ratings. This average is for PNFP legacy loans only.
7. Annualized net loan charge-offs to average loans ratios are
computed by annualizing year-to-date net loan charge-offs and
dividing the result by average loans for the year-to-date period.
8. 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 stockholders’ equity as
       a percentage of end of period assets.
       Tangible common equity to total assets - End of period total
       stockholders’ equity less end of period goodwill, core deposit and
       other intangibles as a percentage of end of period assets.
       Leverage - Tier one capital (pursuant to risk-based capital
       guidelines) as a percentage of adjusted average assets.
       Tier one risk-based - Tier one 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 loan losses.
       Tier one 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.
9. Book value per share computed by dividing total stockholders’
equity less preferred stock and common stock warrants by common
shares outstanding.
10. Amounts are included in the statement of operations in "Gains on
mortgage loans sold, net", net of commissions paid on such amounts.
11. At fair value, based on information obtained from Pinnacle’s
third party broker/dealer for non-FDIC insured financial products
and services.
12. 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.
13. 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.
14. Employment and unemployment data is from BERC- MTSU & Bureau of
Labor Statistics. Labor force data is seasonally adjusted. The most
recent quarter data presented is as of the most recent month that
data is available as of the release date. Historical data is subject
to update by the BERC- MTSU & Bureau of Labor Statistics. Historical
data is presented based on the most recently reported data available
by the BERC- MTSU & Bureau of Labor Statistics. The Nashville home
data is from the Greater Nashville Association of Realtors.
15. Adjusted pre-tax, pre-provision income excludes the impact of
investment gains and losses on sales and impairments, net as well as
other real estate owned expenses and FHLB restructuring charges.
16. Represents one month’s supply of homes currently listed with MLS
based on current sales activity in the Nashville MSA.
17. Represents investment gains (losses) on sales and impairments,
net occurring as a result of both credit losses and 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.
18. The dividend payout ratio is calculated as the sum of the
annualized dividend rate divided by the trailing 12-months fully
diluted earnings per share as of the dividend declaration date.
19. Tax effect calculated using the statutory rate of 39.23% at
December 31, 2015.
 

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160119006908r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160119006908/en/

SOURCE: Pinnacle Financial Partners, Inc.

Pinnacle Financial Partners, Inc. 
Media Contact: 
Nikki Klemmer, 615-743-6132 
or 
Financial Contact: 
Harold Carpenter, 615-744-3742 
www.pnfp.com


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