PNFP Reports 1Q24 Diluted EPS of $1.57

Total revenues increased 32.1 percent linked-quarter annualized and 6.6 percent year-over-year

Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $1.57 for the quarter ended March 31, 2024, compared to net income per diluted common share of $1.76 for the quarter ended March 31, 2023, a decrease of 10.8 percent.

Several meaningful items impacted first quarter 2024 results. The firm’s allowance for credit losses increased to 1.12 percent of total loans at March 31, 2024, compared to 1.08 percent at Dec. 31, 2023. Although, key loan quality metrics like the potential problem loans to total loans ratio and the classified asset ratio remain better than many of the firm's peers and lower than where the firm has historically operated over the longer term, the firm determined additional reserves were needed to account for incremental weakness of one previously disclosed problem borrower and to better position the firm to navigate the credit implications of a higher-for-longer interest rate environment. Additionally, the firm recognized a mortgage servicing asset associated with its Freddie Mac Small Business Lending (SBL) platform of approximately $11.8 million, which has been reflected in other noninterest income. Lastly, in response to information provided by the FDIC during the quarter, the firm increased its other noninterest expense by $7.3 million for a FDIC special assessment. This is in addition to the $29.0 million that the company recognized in the fourth quarter of 2023.

"Inflation appears to be more difficult to tame than the Fed had predicted," said M. Terry Turner, Pinnacle's President and Chief Executive Officer. "Regardless of the economic landscape, our focus continues to be on strengthening our balance sheet and growing our earnings and tangible book value, while continuing to take steps that we believe will position our firm for long-term growth.

"We continued to execute our unique business model during the first quarter. We are reporting strong core earnings inclusive of a meaningful provision for credit losses. We recruited 37 new revenue producers during the quarter, including 14 in our newer markets of Atlanta, Washington D.C., Birmingham and Jacksonville. And as another demonstration of why we are so successful in hiring the best bankers in our markets, FORTUNE and Great Place to Work® recognized our firm as No. 11 on their list of the 100 Best Companies to Work For in the United States. We have been on FORTUNE ’s top 100 list for the last eight years, but this is our highest ranking, further demonstrating the staying power of our culture, even as we have become a larger, high-growth bank.

"Our firm is uniquely positioned in what we believe are many of the best banking markets in the Southeast. As a result, combined with our distinctive operating model, we remain confident in our ability to generate long-term sustainable growth in loans, deposits and earnings in spite of the current economic volatility."

BALANCE SHEET GROWTH AND LIQUIDITY:

Total assets at March 31, 2024, were $48.9 billion, an increase of approximately $934.3 million from Dec. 31, 2023, and $3.8 billion from March 31, 2023, reflecting a year-over-year increase of 8.4 percent and a linked-quarter annualized increase of 7.8 percent, respectively. A further analysis of select balance sheet trends follows:

	Balances at				Linked- Quarter Annualized % Change		Balances at		Year-over-Year % Change
(dollars in thousands)	March 31, 2024		December 31, 2023		Linked- Quarter Annualized % Change		March 31, 2023		Year-over-Year % Change
Loans	$	33,162,873	$	32,676,091	6.0	%	$	30,297,871	9.5	%
Securities		7,371,847		7,323,887	2.6	%		6,878,831	7.2	%
Other interest-earning assets		3,195,211		2,673,235	78.1	%		3,201,938	(0.2	)%
Total interest-earning assets	$	43,729,931	$	42,673,213	9.9	%	$	40,378,640	8.3	%

Core deposits:
Noninterest-bearing deposits	$	7,958,739	$	7,906,502	2.6	%	$	9,018,439	(11.8	)%
Interest-bearing core deposits ⁽¹⁾		26,679,871		25,832,415	13.1	%		23,035,672	15.8	%
Noncore deposits and other funding ⁽²⁾		7,506,409		7,573,489	(3.5	)%		6,865,003	9.3	%
Total funding	$	42,145,019	$	41,312,406	8.1	%	$	38,919,114	8.3	%

	⁽¹⁾ :	Interest-bearing core deposits are interest-bearing deposits, money market accounts and time deposits less than $250,000 including reciprocating time and money market deposits.
	⁽²⁾ :	Noncore deposits and other funding consists of time deposits greater than $250,000, securities sold under agreements to repurchase, public funds, brokered deposits, FHLB advances and subordinated debt.

	Three months ended
	March 31, 2024		December 31, 2023		March 31, 2023
Average loan to deposit ratio	84.73	%	84.05	%	83.97	%
Uninsured/uncollateralized deposits to total deposits ⁽¹⁾	30.48	%	31.32	%	33.23	%

⁽¹⁾ :

Includes the effect of placement of deposits through the IntraFi network.

Approximately 46.5 percent of first quarter 2024 loan growth was related to commercial and industrial and owner-occupied commercial real estate categories, two segments the firm intends to continue to emphasize throughout the remainder of 2024.
On-balance sheet liquidity, defined as cash and cash equivalents plus unpledged securities, remained strong, totaling $7.6 billion as of March 31, 2024, representing a $646.7 million increase from the on-balance sheet liquidity level of $6.9 billion as of Dec. 31, 2023. Increased deposit inflows during the quarter contributed to the increase in other interest earning assets and are expected to be used to fund future loan growth of the firm.
Noninterest bearing deposits increased 2.6 percent on a linked-quarter annualized basis as of March 31, 2024, when compared to Dec. 31, 2023. In comparison to March 31, 2023, noninterest bearing deposits decreased by 11.8 percent. The average balance of the firm’s noninterest bearing accounts was $31,353 at March 31, 2024, compared to $31,603 at Dec. 31, 2023.

"We are particularly pleased with our strong deposit growth during the first quarter, which grew $862.2 million in the quarter, a 9.0 percent linked-quarter annualized growth rate," Turner said. "Importantly, our end-of-period noninterest-bearing demand deposit accounts grew 2.6 percent linked-quarter annualized after having experienced declining demand deposit volumes for several quarters. During the first quarter, our loans grew at an annualized rate of 6.0 percent, which is slightly below what we expect for all of 2024. While we are benefited by operating in several of the best banking markets in the Southeast, our loan and deposit growth is primarily a result of the market share movement associated with our ongoing hiring in those markets over the last several years."

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

Pre-tax, pre-provision net revenues (PPNR) for the three months ended March 31, 2024, were $185.8 million, a decrease of 2.2 percent from the $190.0 million recognized in the three months ended March 31, 2023.

	Three months ended
	March 31,
(dollars in thousands)	2024			2023		% change
Revenues:
Net interest income	$	318,034		$	312,231	1.9	%
Noninterest income		110,103			89,529	23.0	%
Total revenues		428,137			401,760	6.6	%
Noninterest expense		242,365			211,727	14.5	%
Pre-tax, pre-provision net revenue (PPNR)		185,772			190,033	(2.2	)%
Adjustments:
ORE expense (benefit)		84			99	(15.2	)%
FDIC special assessment		7,250			—	NM
Recognition of mortgage servicing asset		(11,812	)		—	NM
Adjusted PPNR	$	181,294		$	190,132	(4.6	)%

	Three months ended
	March 31, 2024		December 31, 2023		March 31, 2023
Net interest margin	3.04	%	3.06	%	3.40	%
Efficiency ratio	56.61	%	63.37	%	52.70	%
Return on average assets	1.00	%	0.76	%	1.26	%
Return on average tangible common equity (TCE)	12.11	%	9.53	%	15.43	%
Average loan to deposit ratio	84.73	%	84.05	%	83.97	%

Revenue per fully diluted common share was $5.60 for the first quarter of 2024, compared to $5.16 for the fourth quarter of 2023 and $5.28 for the first quarter of 2023, an increase of 6.1 percent year-over-year.
Net interest income for the first quarter of 2024, was $318.0 million, compared to $317.3 million for the fourth quarter of 2023 and $312.2 million for the first quarter of 2023, a year-over-year growth rate of 1.9 percent. Net interest margin was 3.04 percent for the first quarter of 2024, compared to 3.06 percent for the fourth quarter of 2023 and 3.40 percent for the first quarter of 2023.
Noninterest income for the first quarter of 2024, was $110.1 million, compared to $79.1 million for the fourth quarter of 2023 and $89.5 million for the first quarter of 2023, a year-over-year increase of 23.0 percent.
- Wealth management revenues, which include investment, trust and insurance services, were $26.0 million for the first quarter of 2024, compared to $23.5 million for the fourth quarter of 2023 and $22.5 million for the first quarter of 2023, a year-over-year increase of 15.7 percent. The increase in wealth management revenues was attributable to several factors, but primarily is the result of an increase in capacity with more revenue producers and the placement of those producers in Pinnacle’s newer markets like Washington D.C., Birmingham and others.
- During the first quarter of 2024, net gains from mortgage loans sold were $2.9 million, compared to $879,000 in the fourth quarter of 2023 and $2.1 million in the first quarter of 2023. Similar to wealth management, the increase in mortgage fee income was primarily attributable to increases in capacity with more originators in Pinnacle's newer markets.
- Income from the firm's investment in Banker's Healthcare Group (BHG) was $16.0 million for the first quarter of 2024, compared to $14.4 million for the fourth quarter of 2023 and $19.1 million for the first quarter of 2023, a year-over-year decline of 16.0 percent.
  - BHG's loan originations decreased to $692 million in the first quarter of 2024, compared to $786 million in the fourth quarter of 2023 and $1.0 billion in the first quarter of 2023.
  - Loans sold to BHG's community bank partners were approximately $533 million in the first quarter of 2024, compared to approximately $446 million in the fourth quarter of 2023 and $704 million in the first quarter of 2023.
  - BHG increased its reserves for on-balance sheet loan losses to $306 million, or 10.3 percent of loans held for investment at March 31, 2024, compared to 9.3 percent at Dec. 31, 2023 and 5.2 percent at March 31, 2023. The year-over-year increase in reserves as a percentage of loans held for investment was impacted by BHG's adoption for lifetime credit losses associated with its implementation of the current expected credit loss (CECL) methodology on Oct. 1, 2023.
  - BHG increased its accrual for estimated losses attributable to loan substitutions and prepayments to $391 million, or 5.7 percent of the unpaid loan balances that were previously purchased by BHG's community bank network, at March 31, 2024, compared to 5.4 percent, or $357 million, at Dec. 31, 2023 and 5.81 percent, or $350 million, at March 31, 2023.
- Other noninterest income increased $24.1 million between the first quarter of 2024 and the fourth quarter of 2023 and $17.6 million from the first quarter of 2023. Impacting other noninterest income was approximately $11.8 million associated with the aforementioned recognition of the SBL mortgage servicing asset, as well as increased income from the firm’s Bank Owned Life Insurance (BOLI) policies compared to the first quarter of 2023. In the fourth quarter of 2023, the firm incurred approximately $7.2 million in policy surrender charges and $9.1 million in tax penalties attributable to restructuring BOLI policies. The firm believes the reimbursement ("payback") period from the date of the restructuring should approximate 18 months.
Noninterest expense for the quarter ended March 31, 2024, was $242.4 million, compared to $251.2 million in the fourth quarter of 2023 and $211.7 million in the first quarter of 2023, reflecting a year-over-year increase of 14.5 percent.
- Salaries and employee benefits were $146.0 million in the first quarter of 2024, compared to $133.3 million in the fourth quarter of 2023 and $135.7 million in the first quarter of 2023, reflecting a year-over-year increase of 7.6 percent.
  - Full-time equivalent associates increased to 3,386.5 at March 31, 2024 from 3,357.0 at Dec. 31, 2023 and 3,281.5 at March 31, 2023, a year-over-year increase of 3.2 percent.
  - Incentive costs in the first quarter of 2024 were approximately $1.7 million higher than the fourth quarter of 2023 and $1.1 million higher than the amounts recorded in the first quarter of 2023.
  - Employee benefits costs reflect the seasonality of payroll taxes, medical deductibles, and other benefits costs. Benefit costs in the first quarter of 2024 were approximately $5.5 million higher than the fourth quarter of 2023 and $898,000 higher than the amounts recorded in the first quarter of 2023.
- Equipment and occupancy costs were $39.6 million in the first quarter of 2024, compared to $38.0 million in the fourth quarter of 2023 and $30.4 million in the first quarter of 2023, reflecting a year-over-year increase of 30.6 percent. Impacting the quarterly changes in equipment and occupancy expense between the first quarter of 2024 compared to the fourth quarter of 2023 was the impact of new equipment and facilities annual rent escalators on various properties and equipment that have been placed into service. Compared to the first quarter of 2023, several factors contributed to the increase of equipment and occupancy costs, including new equipment and facilities, rent escalators on various properties and the previously disclosed sale-leaseback transaction executed in the second quarter of 2023.
- Noninterest expense categories, other than those specifically noted above, were $56.7 million in the first quarter of 2024, compared to $79.8 million in the fourth quarter of 2023 and $45.7 million in the first quarter of 2023, reflecting a year-over-year increase of 24.2 percent. Primarily impacting the quarterly changes in other noninterest expense between the fourth quarter of 2023 and first quarter of 2024 was the impact of a reduction in the amount of FDIC special assessment charges in the first quarter of 2024 compared to the fourth quarter of 2023. The special assessment also impacted the comparison of other noninterest expense to the first quarter of 2023, given there was no special assessment last year.

"With the most recent CPI release, we have adjusted our forecast for Fed funds rate decreases from four to two with the first of those starting late in the third quarter of this year,” said Harold R. Carpenter, Pinnacle's Chief Financial Officer. "Therefore, we are modifying our net interest income outlook slightly for the year. Our belief is that we will experience 8 to 10 percent growth in net interest income for this year. As to fee income, we believe the strong start in the first quarter means our core fee revenues should be higher than originally anticipated for 2024. Accordingly, excluding the impact of BHG, the recognition of the $11.8 million of mortgage servicing rights in the first quarter of this year and, in the case of 2023, the $85.7 million gain on the sale of fixed assets as a result of the sale-leaseback transaction, $19.7 million in losses on sale of investments securities and $7.2 million in BOLI restructuring charges, we believe our growth in fee revenues should approximate 10 to 14 percent in 2024 over 2023.

"We continue to estimate that BHG fee income should approximate a mid-single digit percentage increase in 2024 over the $85.4 million in 2023. BHG's first quarter was impacted by the successful completion of their ninth securitization issuance of approximately $300 million. This securitization was comprised completely of consumer loans with a yield difference between the borrower's coupon rate and the securitization borrowing rate of approximately 10.1 percent, one of the highest spreads for a securitization by BHG in its history, reflective of the significant amount of interest BHG received for the transaction. BHG's ability to access the capital markets to secure incremental funding through securitizations of its held-for-investment loan portfolio has contributed to additional flexibility for BHG to fund its operations.

"Excluding the additional FDIC special assessment in the first quarter of 2024, our operating expense was in line with our expectations. We did reduce our anticipated incentive costs for the first quarter primarily as a result of increased provision expense triggered largely by the increase in our allowance for credit losses. We currently are accruing for payout on our annual cash incentive plan at approximately 80 percent of target, less than we had originally planned. Even through all of these matters, we are maintaining our expense outlook at $950 million to $975 million for the year, exclusive of the impact of the FDIC special assessments we incurred in the first quarter and any additional assessments the FDIC may decide to impose this year."

CAPITAL AND SOUNDNESS:

	As of
	March 31, 2024			December 31, 2023			March 31, 2023
Shareholders' equity to total assets		12.5	%		12.6	%		12.6	%
Tangible common equity to tangible assets		8.5	%		8.6	%		8.3	%
Book value per common share	$	76.23		$	75.80		$	71.24
Tangible book value per common share	$	51.98		$	51.38		$	46.75
Annualized net loan charge-offs to avg. loans ⁽¹⁾		0.20	%		0.17	%		0.10	%
Nonperforming assets to total loans, ORE and other nonperforming assets (NPAs)		0.33	%		0.27	%		0.15	%
Classified asset ratio (Pinnacle Bank) ⁽²⁾		4.94	%		5.22	%		2.71	%
Construction and land development loans as a percentage of total capital ⁽³⁾		77.50	%		84.20	%		88.50	%
Construction and land development, non-owner occupied commercial real estate and multi-family loans as a percentage of total capital ⁽³⁾		258.00	%		259.00	%		261.10	%
Allowance for credit losses (ACL) to total loans		1.12	%		1.08	%		1.04	%

	⁽¹⁾ :	Annualized net loan charge-offs to average loans ratios are computed by annualizing quarterly net loan charge-offs and dividing the result by average loans for the quarter.
	⁽²⁾ :	Classified assets as a percentage of Tier 1 capital plus allowance for credit losses.
	⁽³⁾ :	Calculated using the same guidelines as are used in the Federal Financial Institutions Examination Council's Uniform Bank Performance Report.

The allowance and provision for credit losses both increased at March 31, 2024, over Dec. 31, 2023, and March 31, 2023, to account for incremental weakness of a certain borrower as well as better position the firm to navigate the credit implications of a higher-for-longer interest rate environment.
Nonperforming assets increased at March 31, 2024, over Dec. 31, 2023, and March 31, 2023, primarily as a result of downgrading of two loans, one in the Company's construction portfolio and another in its C&I portfolio, each experiencing cash flow challenges at this time.
Both of the firm’s ratios associated with construction and land development and CRE loans in comparison to total capital decreased from the prior quarter. Importantly, and consistent with the firm’s target of achieving a threshold of below 70 percent, the firm’s ratio of construction and land development in relation to total capital at March 31, 2024 showed continued progress and decreased to 77.5 percent.

"Net charge-offs to average loans for the first quarter of 2024 increased during the quarter to 0.20 percent from 0.17 percent in the prior quarter," Carpenter said. "We also experienced modest increases in nonperforming loans in relation to total loans and, conversely, we experienced improvement in similar ratios for past dues and potential problem loans. Net charge-offs at 0.20 percent compare favorably to longer-term historical levels, as do our ratios for nonperforming assets, past dues and potential problem loans. That said, we strive to be diligent with respect to monitoring our entire loan portfolio. A higher-for-longer rate environment coupled with stubborn inflation has required banks to maintain a higher level of caution with respect to credit. Accordingly, we now estimate net charge-offs for the firm may range between 0.20 percent and 0.25 percent of average loans for 2024.

"Also, during the quarter, we experienced an increase in book value per common share from $75.80 to $76.23, an annualized linked-quarter increase of 2.3 percent and an increase in tangible book value per common share from $51.38 at Dec. 31, 2023 to $51.98 at March 31, 2024, an annualized linked-quarter increase of 4.7 percent. As we've previously communicated, increasing our tangible book value per common share remains an important priority for our firm’s leadership."

WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. CDT on April 23, 2024, to discuss first quarter 2024 results and other matters. To access the call for audio only, please call 1-877-209-7255. For the presentation and streaming audio, please access the webcast on the investor relations page of Pinnacle's website at www.pnfp.com .

For those unable to participate in the webcast, it will be archived on the investor relations page of Pinnacle's website at www.pnfp.com for 90 days following the presentation.

Pinnacle Financial Partners provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners and individuals interested in a comprehensive relationship with their financial institution. The firm is the No. 1 and fastest growing bank in the Nashville-Murfreesboro-Franklin MSA, according to 2023 deposit data from the FDIC. Pinnacle is No. 11 on the 2024 list of 100 Best Companies to Work For® in the U.S., its eighth consecutive appearance and was recognized by American Banker as one of America's Best Banks to Work For 11 years in a row and No. 1 among banks with more than $10 billion in assets in 2023.

Pinnacle Bank owns a 49 percent interest in Bankers Healthcare Group (BHG), which provides innovative, hassle-free financial solutions to healthcare practitioners and other professionals. Great Place to Work and FORTUNE ranked BHG No. 4 on its 2021 list of Best Workplaces in New York State in the small/medium business category.

The firm began operations in a single location in downtown Nashville, TN in October 2000 and has since grown to approximately $48.9 billion in assets as of March 31, 2024. As the second-largest bank holding company in Tennessee, Pinnacle operates in several primarily urban markets across the Southeast.

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

Forward-Looking Statements

All statements, other than statements of historical fact, included in this press release, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "expect," "anticipate," "intend," "may," "should," "plan," "believe," "seek," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (i) deterioration in the financial condition of borrowers of Pinnacle Bank and its subsidiaries or BHG, including as a result of the negative impact of inflationary pressures and challenging economic conditions on our and BHG's customers and their businesses, resulting in significant increases in loan losses and provisions for those losses and, in the case of BHG, substitutions; (ii) fluctuations or differences in interest rates on loans or deposits from those that Pinnacle Financial is modeling or anticipating, including as a result of Pinnacle Bank's inability to better match deposit rates with the changes in the short-term rate environment, or that affect the yield curve; (iii) the sale of investment securities in a loss position before their value recovers, including as a result of asset liability management strategies or in response to liquidity needs; (iv) adverse conditions in the national or local economies including in Pinnacle Financial's markets throughout the Southeast region of the United States, particularly in commercial and residential real estate markets; (v) the inability of Pinnacle Financial, or entities in which it has significant investments, like BHG, to maintain the long-term historical growth rate of its, or such entities', loan portfolio; (vi) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, including during times when Pinnacle Bank is seeking to limit the rates it pays on deposits or uncertainty exists in the financial services sector; (vii) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (viii) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (ix) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on Pinnacle Financial’s results, including as a result of the negative impact to net interest margin from rising deposit and other funding costs; (x) the results of regulatory examinations of Pinnacle Financial, Pinnacle Bank or BHG, or companies with whom they do business; (xi) BHG's ability to profitably grow its business and successfully execute on its business plans; (xii) risks of expansion into new geographic or product markets; (xiii) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or other intangible assets; (xiv) the ineffectiveness of Pinnacle Bank's hedging strategies, or the unexpected counterparty failure or hedge failure of the underlying hedges; (xv) reduced ability to attract additional financial advisors (or failure of such advisors to cause their clients to switch to Pinnacle Bank), to retain financial advisors (including as a result of the competitive environment for associates) or otherwise to attract customers from other financial institutions; (xvi) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xvii) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies, required capital maintenance levels or regulatory requests or directives, particularly if Pinnacle Bank's level of applicable commercial real estate loans were to exceed percentage levels of total capital in guidelines recommended by its regulators; (xviii) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xix) the vulnerability of Pinnacle Bank's network and online banking portals, and the systems of parties with whom Pinnacle Bank contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xx) the possibility of increased compliance and operational costs as a result of increased regulatory oversight (including by the Consumer Financial Protection Bureau), including oversight of companies in which Pinnacle Financial or Pinnacle Bank have significant investments, like BHG, and the development of additional banking products for Pinnacle Bank's corporate and consumer clients; (xxi) Pinnacle Financial's ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions; (xxii) difficulties and delays in integrating acquired businesses or fully realizing costs savings and other benefits from acquisitions; (xxiii) the risks associated with Pinnacle Bank being a minority investor in BHG, including the risk that the owners of a majority of the equity interests in BHG decide to sell the company or all or a portion of their ownership interests in BHG (triggering a similar sale by Pinnacle Bank); (xxiv) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxv) fluctuations in the valuations of Pinnacle Financial's equity investments and the ultimate success of such investments; (xxvi) the availability of and access to capital; (xxvii) adverse results (including costs, fines, reputational harm, inability to obtain necessary approvals and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions involving Pinnacle Financial, Pinnacle Bank or BHG; and (xxviii) general competitive, economic, political and market conditions. Additional factors which could affect the forward looking statements can be found in Pinnacle Financial's Annual Report on Form 10-K for the year ended December 31, 2023, and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC and available on the SEC's website at http://www.sec.gov . Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this press release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Matters

This release contains certain non-GAAP financial measures, including, without limitation, total revenues, net income to common shareholders, earnings per diluted common share, revenue per diluted common share, PPNR, efficiency ratio, noninterest expense, noninterest income and the ratio of noninterest expense to average assets, excluding in certain instances the impact of expenses related to other real estate owned, gains or losses on sale of investment securities, gains associated with the sale-leaseback transaction completed in the second quarter of 2023, losses on the restructuring of certain BOLI contracts, charges related to the FDIC special assessment, income associated with the recognition of a mortgage servicing asset in the first quarter of 2024 and other matters for the accounting periods presented. This release may also contain certain other non-GAAP capital ratios and performance measures that exclude the impact of goodwill and core deposit intangibles associated with Pinnacle Financial's acquisitions of BNC, Avenue Bank, Magna Bank, CapitalMark Bank & Trust, Mid-America Bancshares, Inc., Cavalry Bancorp, Inc. and other acquisitions which collectively are less material to the non-GAAP measure as well as the impact of Pinnacle Financial's Series B Preferred Stock. The presentation of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Because non-GAAP financial measures presented in this release are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies.

Pinnacle Financial believes that these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of its operating performance. In addition, because intangible assets such as goodwill and the core deposit intangible, and the other items excluded each vary extensively from company to company, Pinnacle Financial believes that the presentation of this information allows investors to more easily compare Pinnacle Financial's results to the results of other companies. Pinnacle Financial's management utilizes this non-GAAP financial information to compare Pinnacle Financial's operating performance for 2024 versus certain periods in 2023 and to internally prepared projections.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS – UNAUDITED

*(dollars in thousands, except for share and per share data)*	March 31, 2024			December 31, 2023			March 31, 2023
*ASSETS*
Cash and noninterest-bearing due from banks	$	175,826		$	228,620		$	209,255
Restricted cash		58,285			86,873			13,049
Interest-bearing due from banks		2,472,250			1,914,856			2,597,172
Cash and cash equivalents		2,706,361			2,230,349			2,819,476
Securities purchased with agreement to resell		554,022			558,009			509,872
Securities available-for-sale, at fair value		4,378,718			4,317,530			3,825,203
Securities held-to-maturity (fair value of $2.7 billion, $2.8 billion, and $2.8 billion, net of allowance for credit losses of $1.7 million, $1.7 million, and $1.9 million at March 31, 2024, Dec. 31, 2023, and March 31, 2023, respectively)		2,993,129			3,006,357			3,053,628
Consumer loans held-for-sale		104,586			104,217			58,758
Commercial loans held-for-sale		6,068			9,280			23,087
Loans		33,162,873			32,676,091			30,297,871
Less allowance for credit losses		(371,337	)		(353,055	)		(313,841	)
Loans, net		32,791,536			32,323,036			29,984,030
Premises and equipment, net		265,579			256,877			354,713
Equity method investment		457,657			445,223			438,303
Accrued interest receivable		219,887			217,491			143,965
Goodwill		1,846,973			1,846,973			1,846,973
Core deposits and other intangible assets		25,881			27,465			32,761
Other real estate owned		2,766			3,937			7,802
Other assets		2,541,033			2,613,139			2,021,016
Total assets	$	48,894,196		$	47,959,883		$	45,119,587
*LIABILITIES AND SHAREHOLDERS' EQUITY*
Deposits:
Noninterest-bearing	$	7,958,739		$	7,906,502		$	9,018,439
Interest-bearing		12,178,471			11,365,349			8,944,353
Savings and money market accounts		14,761,573			14,427,206			14,136,850
Time		4,503,242			4,840,753			4,078,911
Total deposits		39,402,025			38,539,810			36,178,553
Securities sold under agreements to repurchase		201,418			209,489			149,777
Federal Home Loan Bank advances		2,116,417			2,138,169			2,166,508
Subordinated debt and other borrowings		425,159			424,938			424,276
Accrued interest payable		58,069			66,967			31,728
Other liabilities		587,257			544,722			484,617
Total liabilities		42,790,345			41,924,095			39,435,459
Preferred stock, no par value, 10.0 million shares authorized; 225,000 shares non-cumulative perpetual preferred stock, Series B, liquidation preference $225.0 million, issued and outstanding at March 31, 2024, Dec. 31, 2023, and March 31, 2023, respectively		217,126			217,126			217,126
Common stock, par value $1.00; 180.0 million shares authorized; 77.2 million, 76.8 million and 76.7 million shares issued and outstanding at March 31, 2024, Dec. 31, 2023, and March 31, 2023, respectively		77,219			76,767			76,739
Additional paid-in capital		3,100,817			3,109,493			3,079,020
Retained earnings		2,887,804			2,784,927			2,458,006
Accumulated other comprehensive loss, net of taxes		(179,115	)		(152,525	)		(146,763	)
Total shareholders' equity		6,103,851			6,035,788			5,684,128
Total liabilities and shareholders' equity	$	48,894,196		$	47,959,883		$	45,119,587
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
*(dollars in thousands, except for share and per share data)*	Three months ended
	March 31, 2024			December 31, 2023			March 31, 2023
Interest income:
Loans, including fees	$	541,199		$	530,604		$	431,902
Securities
Taxable		44,470			42,458			29,358
Tax-exempt		24,600			25,035			23,802
Federal funds sold and other		40,214			46,699			20,977
Total interest income		650,483			644,796			506,039
Interest expense:
Deposits		300,968			297,556			176,589
Securities sold under agreements to repurchase		1,399			1,295			595
FHLB advances and other borrowings		30,082			28,693			16,624
Total interest expense		332,449			327,544			193,808
Net interest income		318,034			317,252			312,231
Provision for credit losses		34,497			16,314			18,767
Net interest income after provision for credit losses		283,537			300,938			293,464
Noninterest income:
Service charges on deposit accounts		13,439			12,660			11,718
Investment services		14,751			13,410			11,595
Insurance sales commissions		3,852			3,072			4,464
Gains on mortgage loans sold, net		2,879			879			2,053
Investment gains on sales, net		—			14			—
Trust fees		7,415			6,987			6,429
Income from equity method investment		16,035			14,432			19,079
Gain on sale of fixed assets		58			102			135
Other noninterest income		51,674			27,532			34,056
Total noninterest income		110,103			79,088			89,529
Noninterest expense:
Salaries and employee benefits		146,010			133,333			135,708
Equipment and occupancy		39,646			38,021			30,353
Other real estate, net		84			125			99
Marketing and other business development		6,125			6,829			5,942
Postage and supplies		2,771			2,840			2,819
Amortization of intangibles		1,584			1,751			1,794
Other noninterest expense		46,145			68,269			35,012
Total noninterest expense		242,365			251,168			211,727
Income before income taxes		151,275			128,858			171,266
Income tax expense		27,331			33,879			33,995
Net income		123,944			94,979			137,271
Preferred stock dividends		(3,798	)		(3,798	)		(3,798	)
Net income available to common shareholders	$	120,146		$	91,181		$	133,473
*Per share information:*
Basic net income per common share	$	1.58		$	1.20		$	1.76
Diluted net income per common share	$	1.57		$	1.19		$	1.76
Weighted average common shares outstanding:
Basic		76,278,453			76,068,016			75,921,282
Diluted		76,428,885			76,823,991			76,042,328
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 SHAREHOLDERS' EQUITY
*(Unaudited)*

(dollars and shares in thousands)	Preferred Stock Amount		Common Stock					Additional Paid-in Capital			Retained Earnings			Accumulated Other Comp. Income (Loss), net			Total Shareholders' Equity
	Preferred Stock Amount		Shares		Amounts			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comp. Income (Loss), net			Total Shareholders' Equity
Balance at December 31, 2022	$	217,126	76,454		$	76,454		$	3,074,867		$	2,341,706		$	(190,761	)	$	5,519,392
Exercise of employee common stock options & related tax benefits		—	40			40			920			—			—			960
Preferred dividends paid ($16.88 per share)		—	—			—			—			(3,798	)		—			(3,798	)
Common dividends paid ($0.22 per share)		—	—			—			—			(17,173	)					(17,173	)
Issuance of restricted common shares, net of forfeitures		—	193			193			(193	)		—			—			—
Restricted shares withheld for taxes & related tax benefits		—	(41	)		(41	)		(3,035	)		—			—			(3,076	)
Issuance of common stock pursuant to restricted stock unit (RSU) and performance stock unit (PSU) agreements, net of shares withheld for taxes & related tax benefits		—	93			93			(3,738	)		—			—			(3,645	)
Compensation expense for restricted shares & performance stock units		—	—			—			10,199			—			—			10,199
Net income		—	—			—			—			137,271			—			137,271
Other comprehensive gain		—	—			—			—			—			43,998			43,998
Balance at March 31, 2023	$	217,126	76,739		$	76,739		$	3,079,020		$	2,458,006		$	(146,763	)	$	5,684,128

Balance at December 31, 2023	$	217,126	76,767		$	76,767		$	3,109,493		$	2,784,927		$	(152,525	)	$	6,035,788
Exercise of employee common stock options & related tax benefits		—	—			—			—			—			—			—
Preferred dividends paid ($16.88 per share)		—	—			—			—			(3,798	)		—			(3,798	)
Common dividends paid ($0.22 per share)		—	—			—			—			(17,269	)		—			(17,269	)
Issuance of restricted common shares, net of forfeitures		—	190			190			(190	)		—			—			—
Restricted shares withheld for taxes & related tax benefits		—	(49	)		(49	)		(4,088	)		—			—			(4,137	)
Issuance of common stock pursuant to RSU and PSU agreements, net of shares withheld for taxes & related tax benefits		—	311			311			(14,738	)		—			—			(14,427	)
Compensation expense for restricted shares & performance stock units		—	—			—			10,340			—			—			10,340
Net income		—	—			—			—			123,944			—			123,944
Other comprehensive loss		—	—			—			—			—			(26,590	)		(26,590	)
Balance at March 31, 2024	$	217,126	77,219		$	77,219		$	3,100,817		$	2,887,804		$	(179,115	)	$	6,103,851


PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED

*(dollars in thousands)*	March			December		September		June		March		December
*(dollars in thousands)*	2024			2023		2023		2023		2023		2022
Balance sheet data, at quarter end:
Commercial and industrial loans	$	11,893,198		11,666,691		11,307,611		10,983,911		10,723,327		10,241,362
Commercial real estate - owner occupied loans		4,044,973		4,044,896		3,944,616		3,845,359		3,686,796		3,587,257
Commercial real estate - investment loans		6,138,711		5,929,595		5,957,426		5,682,652		5,556,484		5,277,454
Commercial real estate - multifamily and other loans		1,924,931		1,605,899		1,490,184		1,488,236		1,331,249		1,265,165
Consumer real estate - mortgage loans		4,828,416		4,851,531		4,768,780		4,692,673		4,531,285		4,435,046
Construction and land development loans		3,818,334		4,041,081		3,942,143		3,904,774		3,909,024		3,679,498
Consumer and other loans		514,310		536,398		532,524		555,685		559,706		555,823
Total loans		33,162,873		32,676,091		31,943,284		31,153,290		30,297,871		29,041,605
Allowance for credit losses		(371,337	)	(353,055	)	(346,192	)	(337,459	)	(313,841	)	(300,665	)
Securities		7,371,847		7,323,887		6,882,276		6,623,457		6,878,831		6,637,920
Total assets		48,894,196		47,959,883		47,523,790		46,875,982		45,119,587		41,970,021
Noninterest-bearing deposits		7,958,739		7,906,502		8,324,325		8,436,799		9,018,439		9,812,744
Total deposits		39,402,025		38,539,810		38,295,809		37,722,661		36,178,553		34,961,238
Securities sold under agreements to repurchase		201,418		209,489		195,999		163,774		149,777		194,910
FHLB advances		2,116,417		2,138,169		2,110,598		2,200,917		2,166,508		464,436
Subordinated debt and other borrowings		425,159		424,938		424,718		424,497		424,276		424,055
Total shareholders' equity		6,103,851		6,035,788		5,837,641		5,843,759		5,684,128		5,519,392
Balance sheet data, quarterly averages:
Total loans	$	33,041,954		32,371,506		31,529,854		30,882,205		29,633,640		28,402,197
Securities		7,307,201		6,967,488		6,801,285		6,722,247		6,765,126		6,537,262
Federal funds sold and other		3,274,062		3,615,908		4,292,956		3,350,705		2,100,757		1,828,588
Total earning assets		43,623,217		42,954,902		42,624,095		40,955,157		38,499,523		36,768,047
Total assets		48,311,260		47,668,519		47,266,199		45,411,961		42,983,854		41,324,251
Noninterest-bearing deposits		7,962,217		8,342,572		8,515,733		8,599,781		9,332,317		10,486,233
Total deposits		38,995,709		38,515,560		38,078,665		36,355,859		35,291,775		34,177,281
Securities sold under agreements to repurchase		210,888		202,601		184,681		162,429		219,082		199,610
FHLB advances		2,214,489		2,112,809		2,132,638		2,352,045		1,130,356		701,813
Subordinated debt and other borrowings		428,281		426,999		426,855		426,712		426,564		427,503
Total shareholders' equity		6,082,616		5,889,075		5,898,196		5,782,239		5,605,604		5,433,274
Statement of operations data, for the three months ended:
Interest income	$	650,483		644,796		627,294		575,239		506,039		451,178
Interest expense		332,449		327,544		310,052		259,846		193,808		131,718
Net interest income		318,034		317,252		317,242		315,393		312,231		319,460
Provision for credit losses		34,497		16,314		26,826		31,689		18,767		24,805
Net interest income after provision for credit losses		283,537		300,938		290,416		283,704		293,464		294,655
Noninterest income		110,103		79,088		90,797		173,839		89,529		82,321
Noninterest expense		242,365		251,168		213,233		211,641		211,727		202,047
Income before income taxes		151,275		128,858		167,980		245,902		171,266		174,929
Income tax expense		27,331		33,879		35,377		48,603		33,995		37,082
Net income		123,944		94,979		132,603		197,299		137,271		137,847
Preferred stock dividends		(3,798	)	(3,798	)	(3,798	)	(3,798	)	(3,798	)	(3,798	)
Net income available to common shareholders	$	120,146		91,181		128,805		193,501		133,473		134,049
Profitability and other ratios:
Return on avg. assets ⁽¹⁾		1.00	%	0.76	%	1.08	%	1.71	%	1.26	%	1.29	%
Return on avg. equity ⁽¹⁾		7.94	%	6.14	%	8.66	%	13.42	%	9.66	%	9.79	%
Return on avg. common equity ⁽¹⁾		8.24	%	6.38	%	9.00	%	13.95	%	10.05	%	10.20	%
Return on avg. tangible common equity ⁽¹⁾		12.11	%	9.53	%	13.43	%	21.06	%	15.43	%	15.95	%
Common stock dividend payout ratio ⁽¹⁴⁾		12.59	%	12.26	%	11.35	%	11.04	%	12.07	%	12.26	%
Net interest margin ⁽²⁾		3.04	%	3.06	%	3.06	%	3.20	%	3.40	%	3.60	%
Noninterest income to total revenue ⁽³⁾		25.72	%	19.95	%	22.25	%	35.53	%	22.28	%	20.49	%
Noninterest income to avg. assets ⁽¹⁾		0.92	%	0.66	%	0.76	%	1.54	%	0.84	%	0.79	%
Noninterest exp. to avg. assets ⁽¹⁾		2.02	%	2.09	%	1.79	%	1.87	%	2.00	%	1.94	%
Efficiency ratio ⁽⁴⁾		56.61	%	63.37	%	52.26	%	43.26	%	52.70	%	50.29	%
Avg. loans to avg. deposits		84.73	%	84.05	%	82.80	%	84.94	%	83.97	%	83.10	%
Securities to total assets		15.08	%	15.27	%	14.48	%	14.13	%	15.25	%	15.82	%
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*
(dollars in thousands)	*March 31, 2024*						*March 31, 2023*
	Average Balances		*Interest*		Rates/ Yields		Average Balances		*Interest*			Rates/ Yields
*Interest-earning assets*
Loans ^{(1) (2)}	$	33,041,954	$	541,199	6.67	%	$	29,633,640	$	431,902		6.00	%
Securities
Taxable		3,919,534		44,470	4.56	%		3,508,946		29,358		3.39	%
Tax-exempt ⁽²⁾		3,387,667		24,600	3.48	%		3,256,180		23,802		3.54	%
Interest-bearing due from banks		2,476,800		32,753	5.32	%		1,392,492		15,941		4.64	%
Resell agreements		543,788		3,858	2.85	%		512,660		3,329		2.63	%
Federal funds sold		—		—	—	%		—		(9	)	—	%
Other		253,474		3,603	5.72	%		195,605		1,716		3.56	%
Total interest-earning assets		43,623,217	$	650,483	6.11	%		38,499,523	$	506,039		5.45	%
*Nonearning assets*
Intangible assets		1,873,871						1,880,890
Other nonearning assets		2,814,172						2,603,441
Total assets	$	48,311,260					$	42,983,854

*Interest-bearing liabilities*
Interest-bearing deposits:
Interest checking		11,567,773		112,728	3.92	%		7,793,823		52,474		2.73	%
Savings and money market		14,608,687		134,752	3.71	%		14,377,996		97,519		2.75	%
Time		4,857,032		53,488	4.43	%		3,787,639		26,596		2.85	%
Total interest-bearing deposits		31,033,492		300,968	3.90	%		25,959,458		176,589		2.76	%
Securities sold under agreements to repurchase		210,888		1,399	2.67	%		219,082		595		1.10	%
Federal Home Loan Bank advances		2,214,489		24,120	4.38	%		1,130,356		10,970		3.94	%
Subordinated debt and other borrowings		428,281		5,962	5.60	%		426,564		5,654		5.38	%
Total interest-bearing liabilities		33,887,150		332,449	3.95	%		27,735,460		193,808		2.83	%
*Noninterest-bearing deposits*		7,962,217		—	—			9,332,317		—		—
Total deposits and interest-bearing liabilities		41,849,367	$	332,449	3.20	%		37,067,777	$	193,808		2.12	%
Other liabilities		379,277						310,473
*Shareholders' equity*		6,082,616						5,605,604
Total liabilities and shareholders' equity	$	48,311,260					$	42,983,854
*Net* *interest* *income*			$	318,034					$	312,231
Net interest spread ⁽³⁾					2.16	%						2.61	%
Net interest margin ⁽⁴⁾					3.04	%						3.40	%

(1) Average balances of nonperforming loans are included in the above amounts.
(2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $11.8 million of taxable equivalent income for the three months ended March 31, 2024 compared to $10.9 million for the three months ended March 31, 2023. The tax-exempt benefit has been reduced by the projected impact of tax-exempt income that will be disallowed pursuant to IRS Regulations as of and for the then current period presented.
(3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the three months ended March 31, 2024 would have been 2.91% compared to a net interest spread of 3.32% for the three months ended March 31, 2023.
(4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.

This information is preliminary and based on company data available at the time of the presentation.


PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED

*(dollars in thousands)*	March			December		September		June		March		December
*(dollars in thousands)*	2024			2023		2023		2023		2023		2022
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans	$	108,325		82,288		42,950		44,289		36,988		38,116
ORE and other nonperforming assets (NPAs)		2,766		4,347		3,019		3,105		7,802		7,952
Total nonperforming assets	$	111,091		86,635		45,969		47,394		44,790		46,068
Past due loans over 90 days and still accruing interest	$	5,273		6,004		4,969		5,257		5,284		4,406
Accruing purchase credit deteriorated loans	$	6,222		6,501		7,010		7,415		7,684		8,060
Net loan charge-offs	$	16,215		13,451		18,093		9,771		7,291		11,729
Allowance for credit losses to nonaccrual loans		342.8	%	429.0	%	806.0	%	762.0	%	848.5	%	788.8	%
As a percentage of total loans:
Past due accruing loans over 30 days		0.17	%	0.23	%	0.16	%	0.14	%	0.14	%	0.15	%
Potential problem loans		0.28	%	0.39	%	0.42	%	0.32	%	0.22	%	0.19	%
Allowance for credit losses		1.12	%	1.08	%	1.08	%	1.08	%	1.04	%	1.04	%
Nonperforming assets to total loans, ORE and other NPAs		0.33	%	0.27	%	0.14	%	0.15	%	0.15	%	0.16	%
Classified asset ratio (Pinnacle Bank) ⁽⁶⁾		4.9	%	5.2	%	4.6	%	3.3	%	2.7	%	2.4	%
Annualized net loan charge-offs to avg. loans ⁽⁵⁾		0.20	%	0.17	%	0.23	%	0.13	%	0.10	%	0.17	%

Interest rates and yields:
Loans		6.67	%	6.62	%	6.50	%	6.30	%	6.00	%	5.54	%
Securities		4.06	%	4.12	%	3.81	%	3.66	%	3.47	%	3.19	%
Total earning assets		6.11	%	6.09	%	5.95	%	5.74	%	5.45	%	5.02	%
Total deposits, including non-interest bearing		3.10	%	3.07	%	2.92	%	2.52	%	2.03	%	1.40	%
Securities sold under agreements to repurchase		2.67	%	2.54	%	2.30	%	1.93	%	1.10	%	0.94	%
FHLB advances		4.38	%	4.26	%	4.22	%	4.20	%	3.94	%	3.04	%
Subordinated debt and other borrowings		5.60	%	5.59	%	5.54	%	5.44	%	5.38	%	4.98	%
Total deposits and interest-bearing liabilities		3.20	%	3.15	%	3.01	%	2.65	%	2.12	%	1.47	%

Capital and other ratios ⁽⁶⁾ :
Pinnacle Financial ratios:
Shareholders' equity to total assets		12.5	%	12.6	%	12.3	%	12.5	%	12.6	%	13.2	%
Common equity Tier one		10.4	%	10.3	%	10.3	%	10.2	%	9.9	%	10.0	%
Tier one risk-based		10.9	%	10.8	%	10.9	%	10.8	%	10.5	%	10.5	%
Total risk-based		12.9	%	12.7	%	12.8	%	12.7	%	12.4	%	12.4	%
Leverage		9.5	%	9.4	%	9.4	%	9.5	%	9.6	%	9.7	%
Tangible common equity to tangible assets		8.5	%	8.6	%	8.2	%	8.3	%	8.3	%	8.5	%
Pinnacle Bank ratios:
Common equity Tier one		11.3	%	11.1	%	11.2	%	11.1	%	10.8	%	10.9	%
Tier one risk-based		11.3	%	11.1	%	11.2	%	11.1	%	10.8	%	10.9	%
Total risk-based		12.2	%	12.0	%	12.0	%	11.9	%	11.6	%	11.6	%
Leverage		9.7	%	9.7	%	9.7	%	9.8	%	9.9	%	10.1	%
Construction and land development loans as a percentage of total capital ⁽¹⁷⁾		77.5	%	84.2	%	83.1	%	84.5	%	88.5	%	85.9	%
Non-owner occupied commercial real estate and multi-family as a percentage of total capital ⁽¹⁷⁾		258.0	%	259.0	%	256.4	%	256.7	%	261.1	%	249.6	%

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)*		March		December		September		June		March		December
*(dollars in thousands, except per share data)*		2024		2023		2023		2023		2023		2022

Per share data:
Earnings per common share – basic	$	1.58		1.20		1.69		2.55		1.76		1.77
Earnings per common share - basic, excluding non-GAAP adjustments	$	1.54		1.70		1.79		1.80		1.76		1.77
Earnings per common share – diluted	$	1.57		1.19		1.69		2.54		1.76		1.76
Earnings per common share - diluted, excluding non-GAAP adjustments	$	1.53		1.68		1.79		1.79		1.76		1.76
Common dividends per share	$	0.22		0.22		0.22		0.22		0.22		0.22
Book value per common share at quarter end ⁽⁷⁾	$	76.23		75.80		73.23		73.32		71.24		69.35
Tangible book value per common share at quarter end ⁽⁷⁾	$	51.98		51.38		48.78		48.85		46.75		44.74
Revenue per diluted common share	$	5.60		5.16		5.35		6.43		5.28		5.27
Revenue per diluted common share, excluding non-GAAP adjustments	$	5.45		5.25		5.48		5.43		5.28		5.27

Investor information:
Closing sales price of common stock on last trading day of quarter	$	85.88		87.22		67.04		56.65		55.16		73.40
High closing sales price of common stock during quarter	$	91.82		89.34		75.95		57.93		82.79		87.81
Low closing sales price of common stock during quarter	$	79.26		60.77		56.41		46.17		52.51		70.74

Closing sales price of depositary shares on last trading day of quarter	$	23.62		22.60		22.70		23.75		24.15		25.35
High closing sales price of depositary shares during quarter	$	24.44		23.65		23.85		24.90		25.71		25.60
Low closing sales price of depositary shares during quarter	$	22.71		21.00		21.54		19.95		20.77		23.11

Other information:
Residential mortgage loan sales:
Gross loans sold	$	148,576		142,556		198,247		192,948		120,146		134,514
Gross fees ⁽⁸⁾	$	3,540		3,191		4,350		4,133		2,795		3,149
Gross fees as a percentage of loans originated		2.38	%	2.24	%	2.19	%	2.14	%	2.33	%	2.34	%
Net gain (loss) on residential mortgage loans sold	$	2,879		879		2,012		1,567		2,053		(65	)
Investment gains (losses) on sales of securities, net ⁽¹³⁾	$	—		14		(9,727	)	(9,961	)	—		—
Brokerage account assets, at quarter end ⁽⁹⁾	$	10,756,108		9,810,457		9,041,716		9,007,230		8,634,339		8,049,125
Trust account managed assets, at quarter end	$	6,297,887		5,530,495		5,047,128		5,084,592		4,855,951		4,560,752
Core deposits ⁽¹⁰⁾	$	34,638,610		33,738,917		33,606,783		32,780,767		32,054,111		31,301,077
Core deposits to total funding ⁽¹⁰⁾		82.2	%	81.7	%	81.9	%	80.9	%	82.4	%	86.8	%
Risk-weighted assets	$	40,531,311		40,205,295		39,527,086		38,853,588		38,117,659		36,216,901
Number of offices		128		128		128		127		126		123
Total core deposits per office	$	270,614		263,585		262,553		258,116		254,398		254,480
Total assets per full-time equivalent employee	$	14,438		14,287		14,274		14,166		13,750		12,948
Annualized revenues per full-time equivalent employee	$	508.5		468.4		486.2		593.0		496.5		491.8
Annualized expenses per full-time equivalent employee	$	287.8		296.8		254.1		256.5		261.7		247.3
Number of employees (full-time equivalent)		3,386.5		3,357.0		3,329.5		3,309.0		3,281.5		3,241.5
Associate retention rate ⁽¹¹⁾		94.2	%	94.2	%	93.6	%	94.1	%	93.8	%	93.8	%

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
	Three months ended
**(dollars in thousands , except per share data)**	March			December		March
**(dollars in thousands , except per share data)**	2024			2023		2023

Net interest income	$	318,034		317,252		312,231

Noninterest income		110,103		79,088		89,529
Total revenues		428,137		396,340		401,760
Less: Investment losses (gains) on sales of securities, net		—		(14	)	—
Loss on BOLI restructuring		—		7,166		—
Recognition of mortgage servicing asset		(11,812	)	—		—
Total revenues excluding the impact of adjustments noted above	$	416,325		403,492		401,760

Noninterest expense	$	242,365		251,168		211,727
Less: ORE expense (benefit)		84		125		99
FDIC special assessment		7,250		29,000		—
Noninterest expense excluding the impact of adjustments noted above	$	235,031		222,043		211,628

Pre-tax income	$	151,275		128,858		171,266
Provision for credit losses		34,497		16,314		18,767
Pre-tax pre-provision net revenue		185,772		145,172		190,033
Less: Adjustments noted above		(4,478	)	36,277		99
Adjusted pre-tax pre-provision net revenue ⁽¹²⁾	$	181,294		181,449		190,132

Noninterest income	$	110,103		79,088		89,529
Less: Adjustments noted above		(11,812	)	7,152		—
Noninterest income excluding the impact of adjustments noted above	$	98,291		86,240		89,529

Efficiency ratio ⁽⁴⁾		56.61	%	63.37	%	52.70	%
Adjustments noted above		(0.16	)%	(8.34	)%	(0.02	)%
Efficiency ratio excluding adjustments noted above ⁽⁴⁾		56.45	%	55.03	%	52.68	%

Total average assets	$	48,311,260		47,668,519		42,983,854

Noninterest income to average assets ⁽¹⁾		0.92	%	0.66	%	0.84	%
Less: Adjustments noted above		(0.10	)%	0.06	%	—	%
Noninterest income (excluding adjustments noted above) to average assets ⁽¹⁾		0.82	%	0.72	%	0.84	%

Noninterest expense to average assets ⁽¹⁾		2.02	%	2.09	%	2.00	%
Adjustments as noted above		(0.06	)%	(0.24	)%	—	%
Noninterest expense (excluding adjustments noted above) to average assets ⁽¹⁾		1.96	%	1.85	%	2.00	%

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
	Three months ended
(dollars in thousands, except per share data)	March			December		September		June		March		December
(dollars in thousands, except per share data)		2024		2023		2023		2023		2023		2022
Net income available to common shareholders	$	120,146		91,181		128,805		193,501		133,473		134,049
Investment (gains) losses on sales of securities, net		—		(14	)	9,727		9,961		—		—
Gain on sale of fixed assets as a result of sale-leaseback transaction		—		—		—		(85,692	)	—		—
Loss on BOLI restructuring		—		16,252		—		—		—		—
FDIC special assessment		7,250		29,000		—		—		—		—
ORE expense (benefit)		84		125		33		58		99		179
Recognition of mortgage servicing asset		(11,812	)	—		—		—		—		—
Tax effect on above noted adjustments ⁽¹⁶⁾		1,120		(7,278	)	(2,440	)	18,918		(25	)	(47	)
Net income available to common shareholders excluding adjustments noted above	$	116,788		129,266		136,125		136,746		133,547		134,181

Basic earnings per common share	$	1.58		1.20		1.69		2.55		1.76		1.77
Less:
Investment (gains) losses on sales of securities, net		—		—		0.13		0.13		—		—
Gain on sale of fixed assets as a result of sale-leaseback transaction		—		—		—		(1.13	)	—		—
Loss on BOLI restructuring		—		0.21		—		—		—		—
FDIC special assessment		0.10		0.38		—		—		—		—
ORE expense (benefit)		—		—		—		—		—		—
Recognition of mortgage servicing asset		(0.15	)	—		—		—		—		—
Tax effect on above noted adjustments ⁽¹⁶⁾		0.01		(0.10	)	(0.03	)	0.25		—		—
Basic earnings per common share excluding adjustments noted above	$	1.54		1.70		1.79		1.80		1.76		1.77

Diluted earnings per common share	$	1.57		1.19		1.69		2.54		1.76		1.76
Less:
Investment (gains) losses on sales of securities, net		—		—		0.13		0.13		—		—
Gain on sale of fixed assets as a result of sale-leaseback transaction		—		—		—		(1.13	)	—		—
Loss on BOLI restructuring		—		0.21		—		—		—		—
FDIC special assessment		0.10		0.38		—		—		—		—
ORE expense (benefit)		—		—		—		—		—		—
Recognition of mortgage servicing asset		(0.15	)	—		—		—		—		—
Tax effect on above noted adjustments ⁽¹⁶⁾		0.01		(0.09	)	(0.03	)	0.25		—		—
Diluted earnings per common share excluding the adjustments noted above	$	1.53		1.68		1.79		1.80		1.76		1.76


Revenue per diluted common share	$	5.60		5.16		5.35		6.43		5.28		5.27
Adjustments due to revenue-impacting items as noted above		(0.15	)	0.09		0.13		(1.00	)	—		—
Revenue per diluted common share excluding adjustments due to revenue-impacting items as noted above	$	5.45		5.25		5.48		5.43		5.28		5.27

Book value per common share at quarter end ⁽⁷⁾	$	76.23		75.80		73.23		73.32		71.24		69.35
Adjustment due to goodwill, core deposit and other intangible assets		(24.25	)	(24.42	)	(24.45	)	(24.47	)	(24.49	)	(24.61	)
Tangible book value per common share at quarter end ⁽⁷⁾	$	51.98		51.38		48.78		48.85		46.75		44.74

Equity method investment ⁽¹⁵⁾
Fee income from BHG, net of amortization	$	16,035		14,432		24,967		26,924		19,079		21,005
Funding cost to support investment		5,974		5,803		6,546		6,005		5,768		5,438
Pre-tax impact of BHG		10,061		8,629		18,421		20,919		13,311		15,567
Income tax expense at statutory rates ⁽¹⁶⁾		2,515		2,157		4,605		5,230		3,328		4,069
Earnings attributable to BHG	$	7,546		6,472		13,816		15,689		9,983		11,498

Basic earnings per common share attributable to BHG	$	0.10		0.09		0.18		0.21		0.13		0.15
Diluted earnings per common share attributable to BHG	$	0.10		0.08		0.18		0.21		0.13		0.15

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
	Three months ended
**(dollars in thousands , except per share data)**	March			December		March
**(dollars in thousands , except per share data)**	2024			2023		2023

Return on average assets ⁽¹⁾		1.00	%	0.76	%	1.26	%
Adjustments as noted above		(0.03	)%	0.32	%	—	%
Return on average assets excluding adjustments noted above ⁽¹⁾		0.97	%	1.08	%	1.26	%

Tangible assets:
Total assets	$	48,894,196		47,959,883		45,119,587
Less: Goodwill		(1,846,973	)	(1,846,973	)	(1,846,973	)
Core deposit and other intangible assets		(25,881	)	(27,465	)	(32,761	)
Net tangible assets	$	47,021,342		46,085,445		43,239,853

Tangible common equity:
Total shareholders' equity	$	6,103,851		6,035,788		5,684,128
Less: Preferred shareholders' equity		(217,126	)	(217,126	)	(217,126	)
Total common shareholders' equity		5,886,725		5,818,662		5,467,002
Less: Goodwill		(1,846,973	)	(1,846,973	)	(1,846,973	)
Core deposit and other intangible assets		(25,881	)	(27,465	)	(32,761	)
Net tangible common equity	$	4,013,871		3,944,224		3,587,268

Ratio of tangible common equity to tangible assets		8.54	%	8.56	%	8.30	%

Average tangible assets:
Average assets	$	48,311,260		47,668,519		42,983,854
Less: Average goodwill		(1,846,973	)	(1,846,973	)	(1,846,973	)
Average core deposit and other intangible assets		(26,898	)	(28,573	)	(33,917	)
Net average tangible assets	$	46,437,389		45,792,973		41,102,964

Return on average assets ⁽¹⁾		1.00	%	0.76	%	1.26	%
Adjustment due to goodwill, core deposit and other intangible assets		0.04	%	0.03	%	0.06	%
Return on average tangible assets ⁽¹⁾		1.04	%	0.79	%	1.32	%
Adjustments as noted above		(0.03	)%	0.33	%	—	%
Return on average tangible assets excluding adjustments noted above ⁽¹⁾		1.01	%	1.12	%	1.32	%

Average tangible common equity:
Average shareholders' equity	$	6,082,616		5,889,075		5,605,604
Less: Average preferred equity		(217,126	)	(217,126	)	(217,126	)
Average common equity		5,865,490		5,671,949		5,388,478
Less: Average goodwill		(1,846,973	)	(1,846,973	)	(1,846,973	)
Average core deposit and other intangible assets		(26,898	)	(28,573	)	(33,917	)
Net average tangible common equity	$	3,991,619		3,796,403		3,507,588

Return on average equity ⁽¹⁾		7.94	%	6.14	%	9.66	%
Adjustment due to average preferred shareholders' equity		0.30	%	0.24	%	0.39	%
Return on average common equity ⁽¹⁾		8.24	%	6.38	%	10.05	%
Adjustment due to goodwill, core deposit and other intangible assets		3.87	%	3.15	%	5.38	%
Return on average tangible common equity ⁽¹⁾		12.11	%	9.53	%	15.43	%
Adjustments as noted above		(0.34	)%	3.98	%	0.01	%
Return on average tangible common equity excluding adjustments noted above ⁽¹⁾		11.77	%	13.51	%	15.44	%

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. Annualized net loan charge-offs to average loans ratios are computed by annualizing quarter-to-date net loan charge-offs and dividing the result by average loans for the quarter-to-date period.

6. Capital ratios are calculated using regulatory reporting regulations enacted for such period and are defined as follows:

Equity to total assets – End of period total shareholders' equity as a percentage of end of period assets.

Tangible common equity to tangible assets - End of period total shareholders' equity less end of period preferred stock, goodwill, core deposit and other intangibles as a percentage of end of period assets less end of period goodwill, core deposit and other intangibles.

Leverage – Tier I capital (pursuant to risk-based capital guidelines) as a percentage of adjusted average assets.

Tier I risk-based – Tier I capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets.

Total risk-based – Total capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets.

Classified asset - Classified assets as a percentage of Tier 1 capital plus allowance for credit losses.

Tier I common equity to risk weighted assets - Tier 1 capital (pursuant to risk-based capital guidelines) less the amount of any preferred stock or subordinated indebtedness that is considered as a component of Tier 1 capital as a percentage of total risk-weighted assets.

7. Book value per common share computed by dividing total common shareholders' equity by common shares outstanding. Tangible book value per common share computed by dividing total common shareholders' equity, less goodwill, core deposit and other intangibles by common shares outstanding.

8. Amounts are included in the statement of income in "Gains on mortgage loans sold, net", net of commissions paid on such amounts.

9. At fair value, based on information obtained from Pinnacle's third party broker/dealer for non-FDIC insured financial products and services.

10. Core deposits include all transaction deposit accounts, money market and savings accounts and all certificates of deposit issued in a denomination of less than $250,000. The ratio noted above represents total core deposits divided by total funding, which includes total deposits, FHLB advances, securities sold under agreements to repurchase, subordinated indebtedness and all other interest-bearing liabilities.

11. Associate retention rate is computed by dividing the number of associates employed at quarter end less the number of associates that have resigned in the last 12 months by the number of associates employed at quarter end.

12. Adjusted pre-tax, pre-provision net revenue excludes the impact of ORE expenses and income, investment gains and losses on sales of securities, the impact of BOLI restructuring, the impact of the FDIC special assessment and the recognition of the mortgage servicing asset.

13. Represents investment gains (losses) on sales and impairments, net occurring as a result of gains or losses incurred as the result of a change in management's intention to sell a bond prior to the recovery of its amortized cost basis.

14. The dividend payout ratio is calculated as the sum of the annualized dividend rate for dividends paid on common shares divided by the trailing 12-months fully diluted earnings per common share as of the dividend declaration date.

15. Earnings from equity method investment includes the impact of the funding costs of the overall franchise calculated using the firm's subordinated and other borrowing rates. Income tax expense is calculated using statutory tax rates.

16. Tax effect calculated using the blended statutory rate of 25.00 percent for all periods in 2024 and 2023. For periods prior to 2023, tax effect calculated using the blended statutory rate of 26.14 percent.

17. Calculated using the same guidelines as are used in the Federal Financial Institutions Examination Council's Uniform Bank Performance Report.

pnfp-earnings