Investor Call...Jul 01, 2020 · M. TERRY TURNER, PRESIDENT AND CEO HAROLD R. CARPENTER, EVP AND...

Investor CallSECOND QUARTER 2020

M. TERRY TURNER, PRESIDENT AND CEOHAROLD R. CARPENTER, EVP AND CFOTIM HUESTIS, EVP AND CHIEF CREDIT OFFICER

July 22, 2020 Time: 8:30 AM CDTWebcast: www.pnfp.com (investor relations)Audio only: 877-602-7944

http://www.pnfp.com/

Safe Harbor Statements

Forward Looking Statements All statements, other than statements of historical fact, included in this presentation, 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) further deterioration in the financial condition of borrowers of Pinnacle Bank and its subsidiaries or BHG resulting in significant increases in loan losses and provisions for those losses and, in the case of BHG, substitutions; (ii) the further effects of the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic and its impact on general economic and financial market conditions and on Pinnacle Financial's and its customers' business, results of operations, asset quality and financial condition; (iii) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, including during times when Pinnacle Bank is seeking to lower rates it pays on deposits; (iv) the inability of Pinnacle Financial, or entities in which it has significant investments, like BHG, to maintain the historical growth rate of its, or such entities', loan portfolio; (v) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (vi) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (vii) 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 compression to net interest margin; (viii) adverse conditions in the national or local economies including in Pinnacle Financial's markets throughout Tennessee, North Carolina, South Carolina, Georgia and Virginia, particularly in commercial and residential real estate markets; (ix) 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; (x) the results of regulatory examinations; (xi) Pinnacle Financial's ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions; (xii) difficulties and delays in integrating acquired businesses or fully realizing costs savings and other benefits from acquisitions; (xiii) BHG's ability to profitably grow its business and successfully execute on its business plans; (xiv) risks of expansion into new geographic or product markets including the recent expansion into the Atlanta, Georgia metro market; (xv) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or other intangible assets; (xvi) 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; (xvii) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xviii) 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; (xix) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xx) 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; (xxi) 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; (xxii) the risks associated with Pinnacle Financial and Pinnacle Bank being a minority investor in BHG, including the risk that the owners of a majority of the equity interests in BHG decide to sell the company; (xxiii) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxiv) the availability of and access to capital; (xxv) 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, including as a result of Pinnacle Bank's participation in and execution of government programs related to the COVID-19 pandemic; and (xxvi) 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, 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 presentation, which speak only as of the date hereof, whether as a result of new information, future events or otherwise.

2

Safe Harbor Statements

Non-GAAP Financial MattersThis presentation contains certain non-GAAP financial measures, including, without limitation, earnings per diluted common share, efficiency ratio 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, the charges associated with Pinnacle Financial's branch rationalization project, FHLB restructuring expenses, the sale of the remaining portion of Pinnacle Bank's non-prime automobile portfolio and other matters for the accounting periods presented. This presentation also includes non-GAAP financial measures which exclude the impact of loans originated under the PPP. This presentation 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 presentation are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies.

Pinnacle Financial believes that these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of its operating performance. In addition, because intangible assets such as goodwill and the core deposit intangible, and the other items excluded each vary extensively from company to company, Pinnacle Financial believes that the presentation of this information allows investors to more easily compare Pinnacle Financial's results to the results of other companies. Pinnacle Financial's management utilizes this non-GAAP financial information to compare Pinnacle Financial's operating performance for 2020 versus certain periods in 2019 and to internally prepared projections.

3

Increased liquidity

Increased allowance

Increased capital

Reduce the noninterest expense build by limiting hiring

Q1 Guidance: Focus on Defense During This PandemicWe have and will continue to build liquidity, reserves and capital during the crisis

2Q20 Financial InformationDespite the difficult operating environment, our key success measures such as asset quality, loan and core deposit growth, deposit betas, fee growth, pre-provision net revenue growth and tangible book value accretion were all very strong this quarter.

2Q20 Summary Results of Key GAAP Measures

6

Total Revenues

Total Deposits(millions)

FD EPS

Book Value per Common Share

Net Income

NPA/ Loans & OREOClassified Asset Ratio NCOs

Total Loans(millions)

0.35%

0.17%

0.10% 0.09% 0.10%

NCOs

$19.58 $22.58

$25.28 $30.26

$34.43

Tangible Book Value per Common Share**

$ 53,251 $ 73,233

$ 122,992 $ 143,628 $ 147,892

Adjusted Pre-Tax Pre-Provision Net Income*

(millions)

19.3%

14.2%12.6%

13.9%

11.2%

Classified Asset Ratio

0.55% 0.44% 0.53% 0.55%

0.38%

NPA/ Loans & OREO

$6,591

$13,529 $15,400

$16,504

$21,392 Total Core Deposits

(millions)

$0.75 $0.84

$1.15

$1.42

$0.89

FD EPS*

$7,091

$14,759 $17,042

$18,814 $22,520

Total Loans(millions)

$107,757

$141,684

$230,175 $264,066 $273,739

Total RevenuesCAGR 20.5%

2Q20 Summary Results of Key Non-GAAP Measures

7

*: excluding merger-related charges, gains and losses on sales of investment securities, ORE expense (income), loss on sale of non-prime automobile portfolio, branch rationalization charges, FHLB restructuring charges and revaluation of deferred tax assets **: excluding goodwill, core deposit and other intangible assetsNote: For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slides 66-67.

CAGR 26.0%CAGR 26.5%

CAGR 12.0%

CAGR 22.7%

Balance Sheet Growth was Strong Owing In Part to PPPCore loan growth in 2Q20 was above expectations before impact of net line draws/ paydowns

$4

,13

0

$4

,25

1

$4

,35

8

$4

,43

6

$4

,62

5

$4

,73

7

$5

,69

0

$6

,45

8

$6

,74

2

$6

,99

8

$8

,23

3

$8

,35

7

$8

,55

8 $9

,81

7

$1

5,0

17

$1

5,5

20

$1

5,9

57

$1

6,7

30

$1

7,2

59

$1

7,6

30

$1

7,9

38

$1

8,6

11

$1

9,2

17

$1

9,6

00

$2

0,0

09

$2

2,2

57

4.30%4.16%

3.40%

3.60%

3.80%

4.00%

4.20%

4.40%

4.60%

4.80%

5.00%

5.20%

5.40%

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

$22,000

$24,000

Loan

Yie

lds

Ave

rage

Lo

ans

(mill

ion

s)

BN

CN

8

14

.2%

14

.6%

18

.7%

13

.3%

11

.7%

9.9

%1

7.2

%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%

28.0%

32.0%

Annual Organic Loan Growth (excludes Day 1 merger impact)

Impact of PPP Organic Growth

*: Annualized growth for the first half of 2020

Average Loan Growth

9

16

.3%

11

.8%

16

.9%

14

.6%

7.1

%

30

.2%

16

.90

%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Annual Organic Deposit Growth (excludes Day 1 merger impact)

Est. Impact of PPP Organic Growth

Balance Sheet Growth was Strong Owing In Part to PPPDeposit growth was unseasonably strong in Q2 even after eliminating the estimated impact of PPP

$4

,51

0

$4

,51

9

$4

,65

5

$4

,75

8

$4

,79

2

$4

,88

5

$5

,89

8

$6

,78

7

$7

,03

7

$7

,09

3

$8

,45

4

$8

,79

1

$9

,09

9

$1

0,3

94

$1

5,8

28

$1

6,0

92

$1

6,2

81

$1

6,9

49

$1

8,1

13

$1

8,3

68

$1

8,3

58

$1

8,8

65

$1

9,7

78

$2

0,0

79

$2

0,6

80

$2

4,8

07

0.23%

0.55%

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

1.75%

2.00%

2.25%

2.50%

2.75%

3.00%

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

$22,000

$24,000

$26,000

Avg. Deposits EOP FFS Target Cost of Deposits

Avg

. De

po

sits

De

po

sit

Rat

es

*: Annualized growth for the first half of 2020

Average Deposit Growth

Margin Contracted as Balance Sheet Repositioned for Potential Impacts of COVID-19 Loan yields contracted along with major indices

Note: Weighted Average EOP Coupon Trends – excluding PPP loans, leases and credit cards and the impact of purchase accounting adjustments and impact from early payoffs which result in immediate recognition of deferred fees and prepayment penalties and increase actual yields.

10

At

Jun

e 3

0, 2

02

0 (

*)

37.7%

15.8%

4.0%

4.6%

38.0%

All LoansLIBOR

Prime

T-Bill

Fixed Rate <1Y

Fixed Rate >1Y

46.0%

17.3%0.8%

35.6%

C&I

38.8%

3.5%

4.3%

53.1%

CRE

49.6%27.5%

1.5%

21.2%

Construction

Rate Index

End-of-Period Weighted Average Coupon New Loans Weighted Average Coupon for the Quarter Origination Mix

Jun. 30, 2019 Mar. 31, 2020 Jun. 30, 2020 YOY Change 3Q19 4Q19 1Q20 2Q20 2Q20

LIBOR 4.79% 3.80% 2.85% (1.94)% 4.49% 4.13% 3.51% 3.15% 39.3%

1-MO LIBOR 2.37% 0.99% 0.16% (2.21)% 2.18% 1.79% 1.43% 0.35%

Prime 5.75% 3.99% 3.99% (1.76)% 5.36% 4.98% 4.00% 3.94% 24.5%

FFS target 2.50% 0.25% 0.25% (2.25)% 2.00% 1.75% 1.40% 0.25 %

Fixed rate 4.60% 4.45% 4.35% (0.25)% 4.65% 4.28% 4.16% 3.99% 31.7%

5-YR UST 1.76% 0.37% 0.29% (1.47)% 1.63% 1.61% 1.14% 0.36%

Margin Contracted as Balance Sheet Repositioned for Potential Impacts of COVID-19 PNFP lowered COF and has achieved a 45% deposit beta since 6/30/2019 – more deposit rate reductions expected

11

• Recognized 54% beta on negotiated deposits and 94% on indexed deposits since 6/30/2019• In the aggregate, interest-bearing transaction accounts at 47% beta• EOP weighted average rate on interest bearing transaction accounts – 0.34% at 6/30/2020

• More deposit rate reductions expected, particularly in the lagging CD portfolio as well as negotiated accounts

Deposit Rate Tranches

Jun. 30, 2019EOP Rates

Mar. 31, 2020

EOP Rates

Jun. 30, 2020EOP Rates

Jun. 19-Jun. 20

Change in EOP rates

Deposit Beta 2.25% at

6/19 -0% at 6/20

June 30, 2020

% of Totals

Noninterest bearing --- --- --- --- --- 27.0%

Interest-bearing:

Rate sheet 0.20% 0.10% 0.10% (0.10)% 4.4% 12.6%

Negotiated 1.66% 0.48% 0.44% (1.22)% 54.2% 33.1%

Indexed 2.43% 0.70% 0.32% (2.11)% 93.8% 9.8%

CDs 2.32% 2.00% 1.59% (0.73)% 32.4% 17.5%

Total interest-bearing 1.66% 0.82% 0.64% (1.02)% 45.3% 73.0%

Total 1.28% 0.63% 0.47% (0.81)% 36.0% 100.0%

Liquidity Sources ($mm) At 6.30.20 At 3.31.20

Cash and FFS $ 2,224.3 $ 843.3

Unpledged investments 3,012.4 2,819.9

Total on-balance sheet 5,236.7 3,663.2

Other available sources:

FHLB capacity 2,357.9 1,777.7

Fed programs (1) 3,264.4 3,415.6

Totals $ 10,859.0 $ 8,856.5

3.5

5%

3.1

7%

2.9

3% 3.2

5%

3.5

5%

3.7

7%

3.7

7%

3.7

5%

3.7

2%

3.7

0%

3.7

6%

3.3

5%

3.4

6%

2.8

7%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

Fed Funds Target (Upper Range) GAAP NIM

Margin Contracted as Balance Sheet Repositioned for Potential Impacts of COVID-19 COF reductions partially offset declining loan yields, increasing liquidity and purchase accounting impacts

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Average q

uarterly yield

Ave

rage

bal

ance

s ($

in m

illio

ns)

Quarterly Avg. FFS and IB Cash

Avg FFS and IB Cash Yield on FFS and IB Cash

Annualized Net Interest Income Impact of Loan Floors ($mm)

At 6.30.20(Libor ~ 0.16%)

At 3.31.20(Libor ~ 0.99%)

$1.3B Balance Sheet Hedge unwind (~$2.5mm/qtr – 4Q21)

$9.9 $10.2

$1.5B Balance Sheet Hedge still in effect through 12/24

$18.2 $4.6

Client loan floors in note documents

$17.7 $10.5(1): Funding available through PPPLF program not considered

-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

Actual/Anticipated Discount AccretionThrough Dec 2020 (in thousands)

$62 mm$40 mm

$23 mm

**: Excluding gains and losses on sales of investment securities. For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slides 66-67.^: Excluding the impact of PPP loans on average assets

13

PNFP Grew Fees on a Linked-Quarter Basis

Mortgage and BHG provided substantial growth

2Q20 1Q20 2Q19Year-over-Year

Change Rate

Service charges $6,910 $9,032 $8,940 (22.7%)

Investment services 5,971 9,239 5,868 1.8%

Insurance commissions 2,231 3,240 2,147 3.9%

Gain on mortgage loans sold, net 19,619 8,583 6,011 226.4%

Investment gains and losses, net (128) 463 (4,466) 97.1%

Trust fees 3,958 4,170 3,461 14.4%

Income from equity method investment 17,208 15,592 32,261 (46.7%)

Other:

Interchange and other consumer fees 8,323 9,969 9,088 (8.4%)

Bank-owned life insurance 4,726 4,652 4,201 12.5%

Loan swap fees 614 2,187 799 (23.2%)

SBA loans sales 941 1,341 1,171 (19.6%)

Gains (losses) on other equity investments (278) (174) 832 (133.4%)

Other 2,859 2,083 369 674.8%

Total noninterest income $72,954 $70,377 $70,682 3.2%

Noninterest income/Average Assets 0.89% 1.00% 1.09% (18.3%)

Noninterest income** $73,082 $69,914 $75,148 (2.7%)

Noninterest Income**/Total Average Assets 0.90% 1.00% 1.19% (24.4%)

Noninterest Income**/Total Average Assets^ 0.95% 1.00% 1.19% (20.2%)

• Income from equity method investment in BHG grew at a linked-quarter annualized growth rate of greater than 41%.

• Wealth management fees are up 6% year-over-year.• Mortgage originations are up 88.7% year-over-year

due to favorable interest rate environment during the quarter, significant growth in revenue producers and strong housing markets in which we operate translating to substantial increase in gains on mortgage loans sold year-over-year.

• Interchange and other consumer fees are down 8.4% year-over-year.

• Other noninterest income up in 2Q20 due primarily to settlement of insurance claim for $935,000.

*: Excluding the impact of ORE expense, FHLB restructuring charges and branch rationalization charges**: Excluding the impact of ORE expense, securities gains and losses, net, FHLB restructuring charges and branch rationalization charges. For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slide 66-67. 14

2Q20 1Q20 2Q19Year-over-Year

Growth %

Salaries and employee benefits: Salaries $54,645 $52,176 $44,625 22.5%

Commissions 3,611 3,983 3,224 12.0%

Cash and equity incentives 4,824 10,281 16,159 (70.1%)

Employee benefits and other 10,807 14,040 11,612 (6.9%)

Total salaries and benefits $73,887 $80,480 $75,620 (2.3%)

Equipment and occupancy 22,026 20,978 23,844 (7.6%)

Other real estate owned, net 2,888 2,415 2,523 14.5%

Marketing and other business development 2,142 3,251 3,282 (34.7%)

Postage and supplies 2,070 1,990 2,079 (0.4%)

Amortization of intangibles 2,479 2,520 2,271 9.2%

Other noninterest expense:

Deposit related expense 5,677 5,238 4,873 16.5%

Lending related expense 10,476 12,068 5,397 94.1%

Wealth management related expense 499 558 610 (18.2%)

Other noninterest expense 9,461 7,851 7,187 31.6%

Total other noninterest expense $26,113 $25,715 $18,067 44.5%

Total noninterest expense $131,605 $137,349 $127,686 3.1%

Efficiency ratio 48.1% 52.0% 49.2% (2.2%)

Expense/Total Average Assets 1.61% 1.96% 1.98% (18.7%)

Noninterest expense * $125,847 $134,934 $121,974 3.2%

Efficiency ratio ** 46.0% 51.2% 46.0% -

Noninterest Expense*/Total Average Assets 1.54% 1.92% 1.89% (18.5%)

Headcount (FTE) 2,577.5 2,562.0 2,361.0 9.2%

Expenses Shrank During the QuarterGrowth in expenses should be in the low to mid-single digit range for the year

• Salary increase largely attributable to increased personnel. Up 216 FTE’s in 2Q20 compared to 2Q19. Headcount up 15.5 FTE’s at June 30, 2020 from Mar. 31, 2020. 2020 headcount plan includes support for Atlanta buildout but otherwise headcount additions continued to be limited to critical revenue and support unit hires.

• Incentive accruals for annual cash incentive plan tracking at 25% of target payout.

• Lending related costs up in 2020 due to impact of CECL on off-balance sheet reserves, which were $4.5 mm for the quarter and $9.7 mm YTD.

• Other noninterest expense in 2Q20 increase over 1Q20 and 2Q19 due primarily to FHLB prepayment penalties.

• 2020 run rate – should be low to mid-single digit increase over 4Q19 annualized run rates.

• Total Allowance for Credit Losses for loans = $285.4 mm or 1.27% of loans at June 30, 2020, or 1.41% excluding PPP loans

Provision Expense was Outsized as PNFP Built ReservesUnemployment and GDP forecast worsened slightly quarter over quarter

(1) Calculation based on end of period loan balance(2) Net charge-off percentage calculation is annualized and in relation to avg. quarterly loan balances

• CECL modeling items of interest• Eight loan portfolio segments are subject to individual modeling techniques• 3rd party economic forecast model provides significant inputs into ACL calculation

• Unemployment and GDP are primary economic forecast metrics• Weighted average of Baseline (50%), Optimistic (25%) and Pessimistic (25%) scenarios

• P&L impact of off-balance sheet reserves of $4.5 million included in Other Noninterest Expense for three months ended June 30, 2020

$’s in 000’s ALL % of LoansOff-Balance

SheetTotal ACL

December 31, 2019 $94,777 0.48% (1) $2,364 $97,141

Day One CECL impact $38,103 0.19% (1) $8,774 $46,877

Beginning – January 1, 2020 $132,880 0.67% (1) $11,138 $144,018

Net Charge offs ($10,155) 0.20% (2) ($10,155)

1Q Provision $99,740 $5,156 $104,896

At March 31, 2020 $222,465 1.09% (1) $16,294 $238,759

Net Charge offs ($5,385) 0.10% (2) ($5,385)

2Q Provision $68,292 $4,500 $72,792

At June 30, 2020 $285,372 1.27% (1) $20,794 $306,166

At June 30, 2020 Excluding PPP Loans 1.41% (1)

Forecasted economic metrics(1)

Base Case Outlook at: 2Q20 4Q20 2Q21 4Q21

US Unemployment Rates

1Q20 8.87% 12.71% 10.96% 8.55%

2Q20 13.40% 10.25% 7.76% 6.81%

US Real GDP Rate Change

1Q20 (9.3%) (9.5%) (3.9%) (1.3%)

2Q20 (13.8%) (9.2%) (4.8%) (2.3%)

(1) Weighted metrics used in PNFP CECL assessment. Unemployment rates are quarterly averages. US Real GDP rates are net change from 4Q19

PNFP will Continue to Focus on Soundness More than Growth in 3Q20The length and depth of the pandemic are unknown, but we remain confident in our model

3Q20 Outlook(in relation to

2Q20)Notes Full Year 2020

Average Loan GrowthLow to mid-single

digit growth (annualized)

Anticipate meaningful PPP payoff/forgiveness before y/e with resulting PPP fee recognition

Full Year Guidance Withheld at this time

Average Deposit GrowthLow to mid-single

digit growth (annualized)

Should experience some reduction in wholesale deposit balances in third quarter. Additionally, anticipate reduction in PPP-related deposit balances during 2H20.

Net interest income UpGAAP margin increase likely with recognition of PPP fee income beginning to ramp up in 3Q20

Fee income DownBelieve BHG performance will be somewhat consistent with 2Q20. Mortgage revenues likely to be down after record 2Q20 and based on volumes and rate volatility.

Expenses FlatExpenses should be relatively stable with 2Q20. No anticipated meaningful change in expense base contemplated at this time. Have throttled back hiring plans meaningfully for 2020.

Net Charge offs

WithheldPending more information regarding pandemic’s depth and subsequent recovery prior to offering any prospective outlook

Return on Average Assets

Return on Tangible Common Equity

Tangible Common EquityLonger term

operating range of 8.75% to 9.75%

Anticipate TCE to be within lower end of our longer-term operating range.

Bankers’ Healthcare GroupBHG’s differentiated model has proven very resilient thus far with continued strong originations, loan sales and yield/spread premium. Temporarily reverting to the gain on sale model provided meaningful pre-provision net revenue to BHG and to Pinnacle. Capital and reserve levels exceed “Great Recession” levels.

18

• BHG’s targeted marketing tactics are differentiating themselves from other models as both 1Q20 and 2Q20 loan originations exceed average quarterly originations in 2019.

• BHG’s unique auction platform has proven to be extremely reliable

• BHG continues to grow its loans held on balance sheet which should help support its securitization strategy long term

• 2Q20 was the strongest placement quarter in the history of BHG, business flows remain strong into third quarter

Source: BHG Internal Data

$6

9M

$6

8M

$7

7M

$8

1M $1

01

M

$1

21

M

$1

32

M

$1

29

M

$1

43

M

$1

25

M

$5

9M

$6

0M $7

9M

$6

7M

$6

8M

$1

09

M

$1

09

M

$8

4M

$1

27

M

$1

93

M

$1

49

M

$1

61

M

$1

47

M $1

76

M

$2

51

M

$2

62

M $3

04

M

$4

09

M

$4

26

M

$4

44

M

10.50%

12.13%

13.17%13.55% 13.48%

14.02%14.33%

15.42% 15.45%

13.84%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

$0M

$100M

$200M

$300M

$400M

$500M

$600M

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

Monthly Average Origination Monthly Average Placements Balance sheet WA Portfolio Rate

BHG’s Differentiated Model Continues to OutperformBHG continues to originate and sell loans with limited impact by COVID-19

19

• FICO scores continue to reflect a high caliber borrower base• Average FICO scores of 732 at origination for loans outstanding at

June 30, 2020.

• Historical credit results indicate that 70% of losses occur within first 36 months of origination

• Data is through June 30, 2020, thus 2019 information includes 18 months of history. Steady improvement in credit over past 7-8 years.

BHG Credit Quality Continues to ImpressSophisticated credit scoring models produce impressive results

Historical FICO Scores


BHG’s Differentiated Model Continues to OutperformVintage analysis demonstrates continuous improvement in portfolio performance

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

<650 650-699 700-749 750-799 >800

20

BHG’s Differentiated Model Continues to OutperformOnly 14.8% of BHG’s loans have been granted deferrals and ongoing requests have essentially stopped

• Deferrals at 14.8% of total portfolio thru June 30th –dentists and optometrists are the most common requesters.

Source: BHG Internal Data as of June 30, 2020

21

• Recourse obligation reserves increased to 7.25% of total loans outstanding (loans off-balance sheet) of almost $3.2B

• BHG has been able to build reserves at this time while maintaining its historically strong profitability

BHG Credit Quality Continues to ImpressSophisticated credit scoring models produce impressive results

Historical Charge Offs and Reserves($s in millions)


BHG’s Differentiated Model Continues to OutperformBHG has built reserves beyond those in the Great Recession

4.04%3.31%

3.28%

2.40%

3.66%

4.55%

4.17% 3.64%

4.56%

4.20%

3.79%

3.73%

3.22%

3.74%

4.56%

4.71%

4.62%

7.25%

$-

$400

$800

$1,200

$1,600

$2,000

$2,400

$2,800

$3,200

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

2012 2013 2014 2015 2016 2017 2018 2019 1H20

Total Ending Balance at outside banks only ($millions) Loss as a % of outstanding

Recourse Obligation as a % of Outstanding

22

BHG Continues to Outperform BHG’s business model continues to perform well during pandemic

$7

7,9

53 $

12

1,1

94

$1

82

,46

1

$0

$50,000

$100,000

$150,000

$200,000

2017 2018 2019 Forecast 2020Th

ou

san

ds

BHG Net Earnings

Big Year at BHG• Interest rate environment provided

opportunity to access capital markets and execute on its first securitization• Anticipate closing in Q3 - $160

million in proceeds • Securitization was issued with

investment grade ratings• Provides an additional funding source

as well as provides for diversification of BHG income streams

• 2Q20 was a record quarter for placements signaling its auction network is very liquid in this environment

• Credit scores of new originations continue to improve during pandemic

COVID-19 and our BorrowersThere are likely no borrowers that are unimpacted by COVID-19. It seems apparent that segments like hotels, restaurants, retail and entertainment will be most impacted by the loss of revenue from the national and local attempts to contain its spread. But it appears the CARES Act stimulus has been effective to date as the volume of deferrals shrank meaningfully and portfolio metrics actually improved in 2Q.

Asset Quality

Hotels4.3%

Restaurants3.2%

Entertainment3.2%

Retail11.3%

Segments Disrupted by COVID-19 at June 30, 20202Q20 Loan Portfolio Highlights:

• Well diversified portfolio• Granular portfolio emphasis on smaller ticket sizes.• Meaningful declines in loan accounts that had previously deferred payments• Energy exposure very small and limited primarily to diesel and gasoline distributors – no coal

exposure• Well within 100/300 guidelines• Approximately 22% of portfolio are to segments most directly disrupted by COVID-19 • Deferrals at 7.17.20 are less than 12% of total loan portfolio

0.55%

0.44%

0.53% 0.55%

0.38%

NPA/ Loans & OREO

19.3%

14.2%

12.6%13.9%

11.2%

Classified Asset Ratio

0.87%

0.42% 0.44%0.48%

1.27%

ALL %

Asset QualityThe volume of loans with payment deferrals has declined meaningfully

Loan deferrals as of July 17, 2020

Deferred $ Volume at

Mar. 31, 2020


Apr. 15, 2020


June 30, 2020


July 17, 2020

Hotels $130,129 $680,925 $809,562 $695,564

Retail 167,277 765,830 886,338 450,216

Restaurant 100,829 239,062 260,309 152,157

Entertainment 29,261 117,392 138,680 82,084

All others 352,423 1,478,897 2,121,541 1,270,407

Totals $779,919 $3,282,106 $4,216,430 $2,650,428

25

• Approximately 50% of borrowers on deferral have made a payment• Deferred loans > $1 million were contacted by relationship managers during 2Q20 to determine status of deferral, path forward

and/or changes to risk grades• Loan deferrals are expected to decline further through August 2020

Hotel PortfolioAmounts as of 6.30.20 – Comments as of 7.17.20

26

Hotel Portfolio Highlights:• Hotel exposure represents 4.3% of total loan portfolio at 6.30.20• $42.4mm of PPP loans booked in 2Q20• Greater than 88% of hotel loans within our markets• Approximately 4.4% of exposure guaranteed by SBA; Nonperformers are only $2.8mm (SBA

guaranteed) at 6.30.20• Hotel CRE and Construction LTV’s 55% – all first mortgage exposure• Less than 25% of our portfolio is full service; so little of revenue is based on food service or other

ancillary services impacted by social distancing• No luxury brand properties • All Top 10 borrowers are open other than those under construction – average estimated occupancy

in June of 2020 of 41%• Deferrals at 7.17.20 are 72.2% of total hotel portfolio

Hotel Portfolio by Product ('000s) Construction Term OtherTotals at

June 30, 2020

Total Commitments $ 240,735 $ 831,625 $ 72,928 $ 1,145,287

Balances as of 6.30.20 $ 114,494 $ 795,438 $ 53,312 $ 963,243

Average balances $4,771 $5,405 $ 1,463 $ 2,288

Average LTV at 6.30.20 60% 55% NM 55%

Payment deferred 07.17.20 $ 44,833 $ 647,890 $ 2,841 $ 695,564

Loans > $30mm - 3.4% - 3.4%

Loans between $5 - $30mm 10.3% 63.3% 1.3% 74.8%

Loans < $5mm 1.6% 15.9% 4.2% 21.8%

Hotel Property Types

Limited Service; 59%

Full Service; 23%

Extended Stay ; 10%

Economy; 5%Other; 3%

Hotel PortfolioAmounts as of 6.30.20 – Comments as of 7.17.20

27

Top

10

Ho

tel B

orr

ow

ers

Hotel Flags

10 Largest Hotel Loans Location

('000s)Exposure at

6.30.20 Loan TypeLTV at 6.30.20 Flag

Hotel PropertyType

Deferral at7.17.20

Little Rock, AR $32,894 Term 60% Marriott Full Service Yes

Chattanooga, TN 31,161 Construction 67% Marriott Limited Service No

Nashville, TN 28,500 Term 65% Marriott Full Service No

Atlanta, GA 26,578 Term 46% Marriott Limited Service Yes

Alpharetta, GA 25,263 Construction 63% Hilton Full Service No

Nashville, TN 25,000 Term 57% Intercontinental Full Service Yes

Walland, TN 24,661 Term 67% Independent Other No

Blacksburg, VA 18,602 Term 72% Other Limited Service Yes

Duncan, SC 18,497 Term 79% Hilton Full Service Yes

Chattanooga, TN 17,805 Term 71% Marriott Full Service Yes

$246,053 21.5% of hotel loans

PNFP Hotel Property Type Descriptions are as follows:

Economy – The economy sector often is used to categorize the smaller, older, low-rise buildings. Characteristics include limited to no service and some

may even have exterior room access. An economy hotel is for the budget minded traveler and examples of flags include; Motel 6, Americas Best Value Inn,

La Quinta, Comfort Inn, Baymont Inn, Red Roof Inn, Super 8, Fairfield Inn, or perhaps an independent roadside property.

Limited Service – This sector is also known as select service and may offer limited food & beverage options. These properties often include amenities such

as a business center, fitness room, and pool, and are represented by brands like Hilton Garden Inn, Tru by Hilton, Courtyard by Marriott and Hyatt Place.

Extended Stay - Extended Stay hotels include provisions for cooking within individual rooms or suites, and the average stay is often a week or more.

Full Service - Full service hotels are generally mid-price, upscale or luxury hotels with a restaurant, lounge facilities, and meeting space as well as minimum

service levels often including bell service and room service.

Other – Property types not included in the above type descriptions including resort/conference center hotels, Airbnb and bed and breakfast hotel types.

Marriott; 32.33%

Hilton; 23.90%Hyatt; 8.27%

InterContinental; 8.10%

Independent; 4.47%

Other; 22.93%

Restaurant PortfolioAmounts as of 6.30.20 – Comments as of 7.17.20

28

Restaurant Portfolio Highlights:• Restaurant exposure represents 3.2% of total loan portfolio at 6.30.20• $179.2mm of PPP loans booked in 2Q20• Includes loans to operators and loans to developers that lease primarily to

franchise restaurants • Approximately 87% of all restaurant exposure within our markets• Approximately 3% of exposure guaranteed by SBA• Nonperformers are only $483k at 6.30.20• Deferrals at 7.17.20 are 21.1% of total restaurant portfolio

Restaurant Portfolio ('000) CRE C&I

Construction & Other

Total6/30/2020

Total Commitments $ 371,202 $378,106 $31,210 $ 780,518

Balances as of 6.30.20 $ 347,953 $350,474 21,136 $ 719,563

Average balances $1,762 $198 $924 $322

Payment deferred at 7.17.20 $ 123,097 $ 23,844 $5,216 $ 152,157

Average LTV at 6.30.20 56% NM 65% 57%

Loans > $5mm 9.6% 8.7% - 18.3%

Loans between $500k-$5mm 33.3% 16.4% 2.0% 51.7%

Loans < $500k 5.9% 23.2% 0.8% 30.0%

C&I; 49%

CRE - Non-owner Occupied; 20%

CRE - Owner Occupied; 28%

Construction & Other; 3%

Outstanding Balance by Product Type

Restaurant PortfolioAmounts as of 6.30.20 – Comments as of 7.17.20

29

LocationExposure at 6.30.20 LTV at 6.30.20 Franchise Name

Deferral at 7.17.20

Nashville, TN $7,625 47% Local/Independent No

Clemmons, NC 4,696 58% Bojangles No

Statesville, NC 4,203 68% Cici’s Pizza No

Columbia, SC 4,013 73% Local/ Independent No

Nashville, TN 3,858 53% Local/ Independent No

Greenville, SC; Huntersville, NC 3,722 60% Bojangles No

Johns Island, SC; Charleston, SC 3,483 64% Bojangles No

Graham, NC; Macon, GA 3,322 61% Bojangles No

Raleigh, NC 3,114 67% Local/Independent No

Erwin, TN 2,958 56% Bojangles No

$40,994 5.3% of Restaurant portfolio

Top 10 Non Owner-Occupied CRE Restaurant Borrowers

LocationExposure at 6.30.20

LTV at6.30.20 Food Service Type Deferral at 7.17.20

Nashville, TN $40,722 37% Fine Dining Yes

Lebanon, TN 35,000 Stock of Subs Casual Dining No

Morristown, TN 23,065 FF&E Quick Service No

Dallas, TX 15,215 44% Fine Dining Yes

Nashville, TN 14,001 78% Quick Service No

Columbia, TN 10,388 71% Quick Service No

$138,391 17.7% of Restaurant portfolio

C&I and Owner-Occupied CRE Restaurant Borrowers with Exposure Greater than $10mm

PNFP Restaurant Property Type Descriptions are as follows:

Casual Dining – Target market could be the traveling public with in-store dining and wait staff. Limited bar service.

Fine Dining – Target market are those customers looking for a complete dining experience. Full bar and wine service.

Quick Service – Most likely a drive through facility with counter ordering. No wait staff and/or very limited alcoholic beverage

service.

CRE Loans – PNFP has provided funding to developer or restaurant owner who leases facility to their restaurant entity which could be

an independent operator or a franchise.

Other – Other properties include bars, caterers, etc.

Casual Dining, 31.4%

CRE loans to developers leasing to restaurants, 26.8%

Quick Service, 24.4%

Other, 9.9%

Fine Dining, 6.1%

Bars/Drinking Establishments, 1.4%

Outstanding by Restaurant Type

Note: Chart excludes PPP loans.

Retail PortfolioAmounts as of 6.30.20 – Comments as of 7.17.20

30

Retail Highlights• Retail exposure represents 11.3% of total loan portfolio at 6.30.20• $187.4mm of PPP loans booked in 2Q20• Includes loans to retail businesses as well as developers renting space to retailers• Extremely granular Nonowner-occupied CRE book – over 700 loans average $1.7mm• No mall exposure• 23% of loans are single-tenant, averaging $1.1mm outstanding• Dollar General, Tractor Supply and 7-Eleven are most prevalent single tenants• Deferrals at 7.17.20 are 17.7% of total retail portfolio

Retail Portfolio by Product ('000)

CRE –Non-Owner

Occupied

CRE –Owner

Occupied C&IConstruction

& OtherTotal at 6/30/20

Total Commitments $ 1,245,911 $ 445,545 $ 1,054,867 $ 311,928 $3,058,250

Balances as of 6.30.20 $ 1,211,699 $ 431,025 $ 716,834 $ 183,820 $ 2,543,378

Average balances as of 6.30.20 $ 1,721 $ 590 $ 281 $ 1,422 $ 604

Payment deferred at 7.17.20 $ 340,534 $ 54,277 $ 23,237 $ 32,166 $ 450,214

Loans > $15mm 6.5% 1.0% 3.8% - 11.2%

Loans between $2mm-$15mm 27.2% 5.4% 12.2% 3.9% 48.7%

Loans < $2mm 14.0% 10.5% 12.2% 3.4% 40.1%

Non-owner occupied CRE; 48%

C&I; 28%

Owner occupied CRE; 17%

Construction & Other; 7%

Outstanding Balance by Product Type

Non-Anchored Multi Tenant Shopping

Center; 36%

Single Tenant; 23%

Grocery Anchored Shopping

Center; 16%

Other Retail Anchored Shopping Center; 10%

Other; 8%

Retail Power Center or Lifestyle

Center; 7%

Regional Mall; 0%

31

CRE – Nonowner Occupied by Tenant Types 10 Largest Retail Relationships

Exposure at 6.30.20 Loan Type

LTV at 6.30.20 Tenant Type

Deferral at 7.17.20

Delray Beach, FL $28,000 Term 69% Grocery Anchored Shopping Center No

New Bern, NC 26,392 Term 70% Retail Power Center or Lifestyle Center Yes

Multiple 25,000 Construction 80% Grocery Anchored Shopping Center No

Greensboro, NC 24,552 Term 70% Single Tenant Yes

Multiple 22,314 Term 60% Single Tenant No

Oxford, MS 22,035 Term 90% Other Retail Anchored Shopping Center No

Olar, SC 21,846 Term 58% Retail Power Center or Lifestyle Center No

Nashville, TN 19,421 Term 43% Non-Anchored Multi-Tenant Shopping Center No

Troy, AL 19,115 Construction 74% Other Retail Anchored Shopping Center No

Fort Mill, SC 16,266 Term 55% Non-Anchored Multi-Tenant Shopping Center Yes

$224,941 7.4% of Retail Portfolio

Top

10

Ret

ail

Bo

rro

wer

s

Retail PortfolioAmounts as of 6.30.20 – Comments as of 7.17.20

Tenant Type Descriptions are as follows:

Grocery Anchored Shopping Center is otherwise known as the “Neighborhood Center”, this is a convenience oriented center and

usually services a 3-mile radius. The grocery anchored encompasses 30-50% of the GLA, and the typical number of tenants range from

5-20 stores.

Other Retail Anchored Shopping Center this is a larger center that services the local area, however offers a wider range of apparel,

merchandise, more soft goods and convenience-service oriented stores than neighbor centers. Several tenants maybe considered

anchors and the typical number of stores range from 15-40.

Non-Anchored, Multi-Tenant Shopping Center also considered a convenience center, is among the smallest of centers, whose tenants

provide a narrow mix of goods and personal services to a very limited trade area.

Regional Mall consists of general merchandise or fashion-oriented offerings. Typically, enclosed with inward-facing stores and

parking surrounds the outside perimeter.

Retail Power Center or Lifestyle Center – A power center is comprised of category-dominant anchors over 60% of the GLA. There are

usually 3-5+ anchor tenants, and services a wider trade area. A Lifestyle center is an upscale dining, shopping, and entertainment

venue in an outdoor setting.

Single Tenant property is fully occupied by a single user and often feature a NNN lease structure.

Entertainment PortfolioAmounts as of 6.30.20 – Comments as of 7.17.20

32

Entertainment Highlights:• Entertainment portfolio is approximately 3.2% of total loans• $53.1mm of PPP loans booked in 2Q20• Over 50% of entertainment book is recording industry which is heavily weighted

towards music publishing and royalty catalogs• Revenues fairly stable due to digital music business • All low LTVs with significant access to capital

• Our recording and publishing industry clients maintain a low overhead model• Film/TV studio exposure has strong guarantor support

• More than 82% of the CRE is owner occupied• Deferrals at 7.17.20 are 11.4% of total entertainment portfolio

Entertainment Portfolio by Product ('000) CRE C&I Other Total at 6.30.20

Total Commitments $ 198,803 $ 710,864 $ 12,781 $ 922,448

Balances as of 6.30.20 $ 194,562 $ 514,396 $ 8,850 $ 717,809

Average balances as of 6.30.20 $ 4,108 $ 398 $ 937 $ 494

Payment deferred at 7.17.20 $ 69,316 $ 11,452 $ 1,316 $82,084

Loans > $20mm 7.0% 8.2% - 15.2%

Loans between $10mm-$20mm 5.2% 9.4% - 14.6%

Loans between $5mm-$10mm 14.9% 21.2% 1.2% 37.3%

Loans < $5mm - 32.9% - 32.9%

10 LargestEntertainment Relationships

('000)Exposure at

6.30.20Loan Type

EntertainmentType

Deferral at 7.17.20

NEEDHAM HEIGHTS, MA $47,014 C&I Recording Industry No

NEW YORK, NY 39,244 C&I Recording Industry No


MEMPHIS, TN 35,623 CRE Tourist Attraction Yes

ONTARIO, CAN 34,568 C&I Recording Industry No

BEVERLY HILLS, CA 34,110 C&I Recording Industry No


LONDON, UK 25,000 C&I Recording Industry No

BEVERLY HILLS, CA 25,000 C&I Recording Industry No

SANTA MONICA, CA 25,000 C&I Recording Industry No

$334,744 36.3% of Entertainment Portfolio

Recording Industry; 54%

Tourist Attractions, Athletics, and Other

Recreation; 33%

Performers & Spectator Sports; 10%

Motion Picture Industry; 3%

Entertainment by Type

Moving Forward in this PandemicAll the impacts of the COVID-19 pandemic are unknown as yet. Duration and severity are likely a function of the length of time before a vaccine is readily available and the amount of government stimulus that is injected – both unknowns. But there can be little doubt that its impacts will be far reaching on our nation in general, and banks in particular. At this juncture, we intend to continue our aggressive focus on protecting our associates, clients, communities and shareholders. Nevertheless, we believe our long-standing differentiated model for attracting talent and competing based on client intimacy should yield best-in-class growth during the pandemic and, more importantly, better position us for the inevitable share grab that will be available following this period that is already stressing client loyalty for our competitors.

• Maintain elevated levels of liquidity, but begin reductions in Q3 and Q4

• Build capital cushions through retained earnings though we aim to continue paying the common stock dividend

• Contain noninterest expense growth

Q3 Guidance: Focus on Defense During this PandemicWe have built liquidity and capital during this crisis

Moving Forward in this PandemicMany client relationships will be built or destroyed

21%

31%

32%

65%

67%

79%

26%

31%

31%

19%

16%

12%

RM advice

Insights and solutions to reduce risks

Insights and solutions to optimize working capital

Digital channels

Willingness to lend

Bank values long term relationship

Most Important Qualities During Crisis

5 - Extremely Important 4 - Important

According to Greenwich Associates and based on current research

Pinnacle Financial Partners is recognized as a

Standout Commercial Bank Amid Crisis

*: 1 of 8 banks in the country that were recognized by Greenwich for responses during the COVID-19 crisis based on client feedback

Source: Greenwich Associates

Moving Forward in this PandemicGreenwich: “Record levels of Expected Bank Switching”

• Angst over PPP has eroded bank loyalty among businesses and owners

• Opportune time for building relationships

• 3 in 10 companies cite intent to switch banks (2-3 times normal level)

Source: Greenwich Associates

37

Q&ASECOND QUARTER 2020

Supplemental Information

Chart• Balance Sheet 39 • Asset Quality 56• Income Statement 57• Peer Group 68

38

Balance Sheet – Loan Portfolio

($ in millions) Amts.

2Q20

%

2Q20

Amts.

1Q20

%

1Q20

Amts.

2Q19

%s

2Q19

Amts.

2Q18

%s

2Q18

C&I $6,293.7 27.9% $6,752.3 33.1% $5,795.1 30.8% $4,821.3 28.3%

C&I – Paycheck Protection Program 2,222.6 9.9% - - - - - -

CRE – Owner Occ. 2,708.3 12.0% 2,650.2 13.0% 2,624.2 13.9% 2,504.9 14.7%

Total C&I & O/O CRE $11,224.6 49.8% $9,402.5 46.1% $8,419.3 44.7% $7,326.2 43.0%

CRE – Investment 4,822.5 21.4% 4,520.2 22.2% 4,252.1 22.6% 3,822.2 22.4%

CRE – Multifamily and other 561.5 2.5% 550.3 2.7% 709.1 3.8% 697.6 4.1%

C&D and Land 2,574.5 11.5% 2,521.0 12.3% 2,118.0 11.3% 2,133.6 12.5%

Total CRE & Construction $7,958.5 35.4% $7,591.5 37.2% $7,079.2 37.6% $6,653.4 39.0%

Consumer RE 3,042.6 13.5% 3,106.5 15.2% 2,949.8 15.8% 2,699.4 15.9%

Consumer and other 294.5 1.3% 296.4 1.5% 366.0 1.9% 363.9 2.1%

Total Other $3,337.1 14.8% $3,402.9 16.7% $3,315.8 17.7% $3,063.3 18.0%

Total loans $22,520.2 100.0% $20,396.9 100.0% $18,814.3 100.0% $17,042.9 100.0%

39


($ in millions) TOTAL PINNACLE TENNESSEE LOANS CAROLINAS/ VA LOANS ATLANTA OTHER UNIT LOANS*

Amts.

2Q20

Amts.

2Q19

Amts.

2Q20

Amts.

2Q19

Amts.

2Q20

Amts.

2Q19

Amts.

2Q20

Amts.

2Q19

Amts.

2Q20

Amts.

2Q19

C&I $6,293.7 $5,795.1 $4,594.5 $4,407.8 $895.5 $881.6 $19.1 - $784.6 $505.7

C&I – Paycheck Protection Program 2,222.6 - - - - - - - 2,222.6 -

CRE – Owner Occ. 2,708.3 2,624.2 1,585.0 1,517.8 950.8 988.4 7.9 - 164.6 118.0

Total C&I & O/O CRE $11,224.6 $8,419.3 $6,179.5 $5,925.6 $1,846.3 $1,870.0 $27.0 - $3,171.8 $623.7

CRE – Investment 4,822.5 4,252.1 2,108.3 1,752.0 2,648.3 2,448.9 14.5 - 51.4 51.2

CRE – Multifamily and other 561.5 709.1 474.1 496.3 86.0 191.8 - - 1.4 21.0

C&D and Land 2,574.5 2,118.0 1,374.6 1,222.1 1,178.6 865.0 0.5 - 20.8 30.9

Total CRE & Construction $7,958.5 $7,079.2 $3,957.0 $3,470.4 $3,912.9 $3,505.7 $15.0 - $73.6 $103.1

Consumer RE 3,042.6 2,949.8 1,742.2 1,414.1 1,186.9 1,199.0 1.0 - 112.5 336.7

Consumer and other 294.5 366.0 174.6 180.5 42.9 89.2 - - 77.0 96.3

Total Other $3,337.1 $3,315.8 $1,916.8 $1,594.6 $1,229.8 $1,288.2 $1.0 - $189.5 $433.0

Total Loans $22,520.2 $18,814.3 $12,053.3 $10,990.6 $6,989.0 $6,663.9 $43.0 - $3,434.9 $1,159.8

Average Ticket Size (in ‘000s) $272.6 $269.8 $405.2 $389.3 $213.7 $201.4 $1,076.1 - $172.0 $138.1

40Note: Percentages noted in red text represent year-over-year growth rates.*: Represents mortgage, associate banking, automobile finance and various other business lines.


($ in millions) TOTAL PINNACLE C&I & O/O CRE CRE & CONSTRUCTION OTHER LOANS*

Amts.

2Q20

Amts.

2Q19

Amts.

2Q20

Amts.

2Q19

Amts.

2Q20

Amts.

2Q19

Amts.

2Q20

Amts.

2Q19

Nashville $6,681.3 $6,130.0 $2,991.1 $3,062.6 $2,603.2 $2,139.4 $1,087.0 $928.0

Knoxville 1,776.9 1,641.6 1,066.5 996.2 $491.3 473.3 $219.1 172.1

Music and Entertainment 559.6 374.6 431.8 258.7 $20.8 18.5 $107.0 97.4

Chattanooga 1,430.2 1,329.4 836.6 786.8 $321.9 312.0 $271.7 230.6

Memphis 1,605.3 1,515.1 853.5 821.2 $519.8 527.3 $232.0 166.6

Total Tennessee $12,053.3 $10,990.7 $6,179.5 $5,925.5 $3,957.0 $3,470.5 $1,916.8 $1,594.7

Greensboro/Highpoint 1,712.8 1,695.9 583.3 621.2 $884.9 787.7 $244.6 287.0

Charlotte 2,093.3 1,913.1 508.7 484.5 $1,192.7 1,039.2 $391.9 389.4

Raleigh 1,214.4 1,083.8 198.1 200.7 $867.1 740.9 $149.2 142.2

Charleston 822.6 891.8 160.5 173.4 $392.5 433.8 $269.6 284.6

Greenville 427.0 464.3 116.3 149.2 $261.3 266.9 $49.4 48.2

Roanoke 601.1 503.8 177.6 142.1 $299.1 225.1 $124.4 136.6

SBA 117.8 111.2 101.8 99.0 $15.3 12.0 $0.7 0.2

Total Carolina/VA $6,989.0 $6,663.9 $1,846.3 $1,870.1 $3,912.9 $3,505.6 $1,229.8 $1,288.2

Atlanta 43.0 - 27.0 - $15.0 - $1.0 -

Paycheck Protection Program 2,222.6 - 2,222.6 - - - - -

Other 1,212.3 1,159.7 949.2 $623.7 $73.6 103.1 $189.5 432.9

Total $22,520.2 $18,814.3 $11,224.6 $8,419.3 $7,958.5 $7,079.2 $3,337.1 $3,315.8

41Note: Percentages noted in red text represent year-over-year growth rates.*: Represents mortgage, associate banking, automobile finance and various other business lines.


($ in millions) Amts.

2Q20

%

2Q20

Amts.

1Q20

%

1Q20

Amts.

2Q19

%

2Q19

Amts.

2Q18

%

2Q18

Residential – Spec $321.7 1.4% $347.7 1.7% $350.4 1.9% $294.9 1.7%

Residential – Custom 165.9 0.8% 145.2 0.7% 129.5 0.7% 137.6 0.8%

Residential – Condo 1.2 0.0% 1.5 0.0% 0.7 0.0% 0.6 0.0%

Commercial Construct. 1,623.5 7.2% 1,581.9 7.8% 1,254.8 6.7% 1,219.0 7.2%

Land Dev– Residential 272.9 1.2% 269.8 1.3% 211.7 1.1% 161.2 0.9%

Land Dev – Commercial 115.6 0.5% 108.2 0.6% 113.2 0.6% 201.1 1.2%

Land Dev – Mixed Use 13.2 0.1% 6.6 0.0% 4.5 0.0% 32.4 0.2%

Land – Unimproved 60.5 0.3% 60.1 0.3% 53.2 0.3% 86.8 0.5%

Total Construction and Land Dev. $2,574.5 11.5% $2,521.0 12.4% $2,118.0 11.3% $2,133.6 12.5%

42


($ in millions) TOTAL PINNACLE TENNESSEE LOANS CAROLINAS/VA LOANS

ATLANTA LOANS OTHER UNIT LOANS

Amts.

2Q20

Amts.

2Q19

Amts.

2Q20

Amts.

2Q19

Amts.

2Q20

Amts.

2Q19

Amts.

2Q20

Amts.

2Q19

Amts.

2Q20

Amts.

2Q19

Residential – Spec $321.7 $350.4 $229.8 $247.4 $91.5 $101.1 $0.0 $0.0 $0.4 $1.9

Residential – Custom 165.9 129.5 101.7 79.7 63.6 47.9 0.0 $0.0 0.6 1.9

Residential – Condo 1.2 0.7 1.2 0.7 0.0 - 0.0 $0.0 0.0 -

Commercial Construct. 1,623.5 1,254.8 757.0 652.7 863.9 595.4 0.0 $0.0 2.6 6.7

Land Dev– Residential 272.9 211.7 164.1 155.5 93.1 44.4 0.5 $0.0 15.2 11.8

Land Dev – Commercial 115.6 113.2 72.4 46.7 42.6 61.2 0.0 $0.0 0.6 5.3

Land Dev – Mixed Use 13.2 4.5 3.2 3.9 10.0 0.6 0.0 $0.0 0.0 -

Land – Unimproved 60.5 53.2 45.2 35.6 13.8 14.3 0.0 $0.0 1.5 3.3

Total Construction and Land Dev. $2,574.5 $2,118.0 $1,374.6 $1,222.2 $1,178.5 $864.9 $0.5 $0.0 $20.9 $30.9

Average Ticket Size (in ‘000s) $627.0 $516.8 $632.3 $577.0 $632.6 $456.5 $545.7 $0.0 $305.4 $363.2

43


($ in millions) Total NOO and Multifamily Total Construction Total NOO and Construction

Amts.2Q20

Amts.1Q20

Amts.2Q19

Amts.2Q20

Amts.1Q20

Amts. 2Q19

Amts.2Q20

Amts.1Q20

Amts.2Q19

Multifamily $590.4 $550.3 $709.1 $548.4 $491.8 $319.2 $1,138.8 $1,042.1 $1,028.3

Hospitality 730.3 742.6 783.0 113.0 87.4 117.3 843.3 830.0 900.3

Retail 1,325.8 1,328.6 1,284.1 180.3 173.9 115.4 1,506.1 1,502.5 1,399.5

Office 806.5 758.5 724.1 166.8 150.1 88.2 973.3 908.6 812.3

Warehouse 922.7 816.4 657.8 287.9 333.0 227.8 1,210.6 1,149.4 885.6

Medical 482.5 456.0 383.9 122.9 170.8 132.6 605.4 626.8 516.5

Other 525.8 418.1 419.2 1,155.2 1,114.0 1,117.5 1,681.0 1,532.1 1,536.7

Total $5,384.0 $5,070.5 $4,961.2 $2,574.5 $2,521.0 $2,118.0 $7,958.5 $7,591.5 $7,079.2

Average Ticket Size (in ‘000s)

$1,907.7 $1,792.3 $1,752.5 $627.0 $614.0 $516.8 $1,149.4 $1,094.7 $1,022.7

44

Balance Sheet – Loan Portfolio Lines of Credit

45

($'s in millions)

3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020Linked Qtr.

Change

Net Active Balance $ 3,489.80 $ 3,591.00 $ 3,814.50 $ 3,870.10 $ 3,929.10 $ 4,090.80 $ 161.70

Net Available Credit 2,578.30 2,736.80 2,894.50 3,002.60 3,018.50 3,029.60 11.10

Total Exposure 6,068.00 6,327.80 6,708.90 6,872.90 6,947.60 7,120.30 172.70

% Funded 57.5% 56.7% 56.9% 56.3% 56.6% 57.5% 0.9%

Net Active Balance $ 3,565.70 $ 3,832.20 $ 3,805.10 $ 3,911.20 $ 4,214.00 $ 3,702.60 $ (511.40)


Total Exposure 7,217.20 7,503.20 7,590.20 7,605.10 7,907.60 8,014.70 107.10

% Funded 49.4% 51.1% 50.1% 51.4% 53.3% 46.2% -7.1%



Total Exposure 2,651.50 2,664.20 2,766.10 2,785.20 2,841.40 2,867.60 26.20

% Funded 48.8% 48.5% 49.0% 48.1% 48.0% 46.5% -1.5%



Total Exposure 15,936.70 16,495.20 17,065.20 17,263.20 17,696.60 18,002.60 306.00

% Funded 52.4% 52.8% 52.6% 52.8% 53.7% 50.7% -3.0%

CRE – Investment & Construction

C&I and O/O CRE

Consumer Cards and HELOC

Totals

46


-0.40%

-0.30%

-0.20%

-0.10%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

CRE Construction C&I Net commercial chargeoffs

Net Commercial Loan Charge Offs by Loan Type

2015 2016 2017 2018 2019 YTD 2020 Annualized

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

Consumer RE Consumer and other Net consumer charge offs

Net Consumer Loan Charge Offs by Loan Type

2015 2016 2017 2018 2019 YTD 2020 Annualized


($ in thousands)

Description 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19

Loans secured by real estate:

Construction, land development, and other loans:

1-4 family residential construction loans $580,193 $582,106 $578,443 $575,975 $564,339 $575,753

Other construction loans and all land development and other land loans 1,994,301 1,938,831 1,852,040 1,677,328 1,553,630 1,521,817

Loans included in the 100% test $2,574,494 $2,520,937 $2,430,483 $2,253,303 $2,117,969 $2,097,570

Secured by multifamily (5 or more) residential properties $574,328 $551,963 $631,616 $686,385 $726,744 $706,097

Loans secured by other nonfarm nonresidential properties 4,822,537 4,520,234 4,418,658 4,443,687 4,252,098 4,107,953

Financed real estate not secured by real estate 493,494 309,990 317,949 306,738 310,371 136,306

Loans included in the 300% test $8,464,853 $7,903,124 $7,798,706 $7,690,113 $7,407,182 $7,047,9262,

Total Risk-Based Capital $3,078,671 $2,993,005 $2,906,853 $2,818,988 $2,563,617 $2,495,127

% of Total Risk-Based Capital

100% Test – Construction and Land Development 84% 84% 84% 80% 83% 84%

300% Test – Construction and Land Development + NOOCRE + Multifamily 275% 264% 268% 273% 289% 283%

47

Balance Sheet – Deposit Portfolio

($ in millions) TOTAL DEPOSITS CORE DEPOSITS NONCORE DEPOSITS

TOTAL PINNACLE TRANSACTION AND MMDA CDs PUBLIC FUNDS and OTHER DEPOSITS

2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19

Nashville $9,319.6 $7,203.4 $8,515.1 $6,381.4 $529.2 $537.4 $275.3 $284.6

Knoxville 2,134.9 1,670.6 1,970.6 1,550.0 115.4 73.1 48.9 47.5

Music and Entertainment 302.5 282.7 294.1 279.1 1.9 1.6 6.5 2.0

Memphis 1,225.5 866.4 1,013.9 667.6 147.1 147.0 64.5 51.8

Chattanooga 1,455.1 992.9 1,338.3 884.3 60.2 54.7 56.6 53.9

Total Tennessee $14,437.6 $11,016.0 $13,132.0 $9,762.4 $853.8 $813.8 $451.8 $439.8

Greensboro/Highpoint 2,334.9 1,928.0 1,880.6 1,533.8 287.3 281.5 167.0 112.7

Charlotte 1,489.8 1,172.3 1,214.9 850.9 180.5 204.3 94.4 117.1

Charleston 1,037.2 914.7 858.7 702.8 145.7 176.9 32.8 35.0

Raleigh 746.1 603.5 674.6 527.8 50.8 54.5 20.7 21.2

Roanoke 764.3 586.3 621.0 437.9 119.9 128.3 23.4 20.1

Greenville 367.2 316.8 251.5 197.5 79.2 82.5 36.5 36.8

Total Carolinas / VA $6,739.5 $5,521.6 $5,501.3 $4,250.7 $863.4 $928.0 $374.8 $342.9

Atlanta 29.0 - 29.0 - - - - -

Other 4,315.7 2,911.7 978.9 679.4 33.4 69.4 3,303.4 2,162.9

Total $25,521.8 $19,449.3 $19,641.2 $14,692.5 $1,750.6 $1,811.2 $4,130.0 $2,945.6

48Note: Percentages noted in red text represent year-over-year growth rates.

Balance Sheet – Bond Portfolio

Conservative bond portfolio

● Investments to Total Assets of 13%

49

2.3% 2.6%

35.4%

4.3%3.9%

51.5%

Agency/Treasury Corporates MBS Asset Backed CMOs Municipals

Portfolio: June 30, 2020

Total Investments $4.4 billionNet Unrealized Gain $98.8 million

Quarter Duration Avg. Yield- TE

2Q20 4.6% 2.6%

1Q20 4.3% 2.8%

4Q19 4.8% 2.9%

3Q19 4.4% 3.0%

2Q19 4.1% 3.2%

1Q19 3.7% 3.4%

4Q18 3.6% 3.2%

3Q18 4.4% 3.1%

2Q18 3.9% 2.9%

1Q18 3.5% 2.9%

4Q17 3.5% 2.7%

3Q17 3.5% 2.6%

50Note: See slide 68 for peer group utilized in the above analysis.Source: S&P Global

70%74%

77%79% 80%

30%26%

23%21% 20%

Jun. 2019 Sep. 2019 Dec. 2019 Mar. 2020 Jun. 2020

Effective Bond Portfolio CompositionEnd of Period

Fixed Rate Variable Rate

Balance Sheet – Bond Portfolio

2.59

13.0

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

% o

f To

tal A

sse

ts

Bo

nd

Yie

lds

PNFP - Bond Yields Peer Median - Bond Yields

PNFP - % of Total Assets Peer Median - % of Total Assets

Balance Sheet – Loan & Deposit Growth

51Source: Internal records.

$20,397 $20,306

$22,520

$380 $289

$2,214

Period-End to Period-End Loan Growth

$21,333

$25,522 $1,435

$1,700

$1,054

Period-End to Period End Deposit Growth

Interest Rate Sensitivity

52

Interest-rate risk mitigation efforts taken over the past 12 months:

Unwound $900mm of fixed-to-floating loan interest rate swaps

Purchased $2.8b interest rate floors in two tranches ($1.3b and $1.5b)

Unwound $1.3b loan floor in 1Q20; $17mm gain realized through income over next two years

$1.5b loan floor carries a $75mm unrealized gain; provides $18.2mm of annual interest income at 6/30 LIBOR rate of 0.16%

Restructured $600mm of bonds; decreased variable-rate exposure from 30% of investment securities at 6/30/19 to 20% at 6/30/20

Shorter wholesale funding – 80% of wholesale funding refinances within one year as of 6/30/20

Proactive engagement with clients on lower rate environment; moved aggressively to lower deposit rates once Fed moved.

2.1%

1.0%

0.3%

-0.9%

-0.3%

0.4%

-2.6%

-0.9% -0.7%

0.6%

-1.1%

0.5%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

Ne

t In

tere

st In

com

e %

D

Rate Shock Scenarios

Ramp +100 Ramp -100

4.1%

2.2%

1.0%

-1.2%-0.3%

0.6%

-5.3%

-2.1% -1.7%

0.6%

-3.1%

0.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

Ne

t In

tere

st In

com

e %

D

Rate Ramp Scenarios

Shock +100 Shock -100

NIM Adjusted for PPP and Liquidity Impact

53

Estimate that both PPP and Liquidity Build negatively impacted 2Q20 NIM by 0.32%

(2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $6.9 million of taxable equivalent income for the three months ended June 30, 2020 compared to $6.9 million for the three months ended June 30, 2019. 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.

(1) Average balances of nonperforming loans are included in the above amounts.

(3) 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.

Current Expected Credit Losses

Allowance for Credit Losses

12/31/2019Probable Incurred Losses

January 1, 2020CECL Adoption

March 31, 2020CECL

June 30, 2020CECL

Amount % of Loans Amount % of Loans Amount % of Loans Amount % of Loans

Commercial and Industrial $ 36,112 0.57% $ 59,114 0.94% $ 88,032 1.30% $ 100,610 1.60% *

Commercial Real Estate 33,369 0.43% 28,894 0.37% 55,748 0.72% 107,229 1.33%

Construction and Land Development 12,662 0.52% 9,537 0.39% 38,911 1.54% 41,897 1.63%

Consumer Real Estate 8,054 0.26% 29,109 0.95% 32,997 1.06% 29,358 0.96%

Consumer and Other 4,580 1.58% 6,226 2.15% 6,776 2.29% 6,278 2.13%

Allowance for Credit Losses - Loans & Leases $ 94,777 0.48% $ 132,880 0.67% $ 222,464 1.09% $ 285,372 1.41% *

Reserve for unfunded lending commitments 2,364 11,138 16,294 20,794

Allowance for Credit Losses - Total $ 97,141 $ 154,018 $ 238,758 $ 306,166

* Reserve percentages for C&I and total loans at June 30, 2020 exclude PPP loans

• Share Buy Back Program –

• Last transaction on March 19, 2020

• Approximately $67.2 million remaining in authorization through Dec. 31, 2020

• Buyback program continues to be suspended until clarity on length and severity of pandemic better understood

1Q20 4Q19 3Q19 2Q19 1Q19

# of shares repurchased

1,015,039 228,533 199,032 130,888 543,585

Value of shares

$50.8m $12.9m $11.1m $7.4m $30.0m

Avg. price$50.01 $56.54 $55.57 $56.31 $55.25

• Subordinated Indebtedness –

• $130 million of bank-level subordinated debt eligible for call

• Continue to be not likely to redeem issuances until after COVID -19

• Dividends –

• Quarterly common dividend of $0.16 per share

• Quarterly preferred dividend of $0.422 per depositary share

• Anticipate maintaining a common dividend at this time

• Amount and timing dependent upon ongoing impact of COVID-19

$19.58 $22.58

$25.28 $30.26

$34.43

Tangible Book Value per Common Share**

• Preferred Share Issuance –

• 9.0 mm depositary shares representing 1/40th of a share of Series B noncumulative, perpetual preferred stock issued during the second quarter

• Proceeds to be used to support general corporate needs

**: excluding goodwill, core deposit and other intangible assetsNote: For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slides 66-67.

Balance Sheet – Capital

Asset Quality

(*) > 30 days past due (**) Excludes past due loans rated substandard

56

($ in millions) June 30, 2020AS A % OF TOTAL

LOANS Mar. 31, 2020

AS A % OF TOTALLOANS

June 30, 2019AS A % OF TOTAL

LOANS

Past Due Loans (*)

Nonaccrual loans $30,505 0.14% $31,285 0.15% $41,282 0.22%

Accruing loans 20,706 0.09% 33,780 0.17% 40,199 0.21%

Total past due $51,211 0.23% $65,065 0.32% $81,481 0.43%

NPLs and > 90 days

Const. and land development $3,230 0.01% $2,391 0.01% $2,395 0.01%

Consumer RE 23,255 0.10% 26,623 0.13% 30,117 0.16%

CRE – Owner Occupied 11,806 0.05% 11,324 0.06% 13,011 0.07%

CRE – Non-Owner Occupied 10,454 0.05% 9,375 0.05% 10,850 0.06%

Total real estate $48,745 0.22% $49,713 0.25% 56,373 0.30%

C&I 15,239 0.07% 22,805 0.11% 21,420 0.11%

Other 560 0.00% 442 0.00% 1,017 0.01%

Total loans $64,544 0.29% $72,960 0.36% $78,810 0.42%

Classified loans and ORE

Substandard commercial loans $288,906 1.28% $293,665 1.44% $283,259 1.51%

Doubtful commercial loans - 0.00% 294 0.00% 1 0.00%

Other impaired loans 25,694 0.11% 26,926 0.13% 25,273 0.13%

90 days past due and accruing (**) 1,682 0.01% 1,990 0.01% 2,644 0.01%

Other real estate 22,080 0.10% 27,182 0.13% 26,657 0.14%

Other repossessed assets 25 0.00% - 0.00% 1 0.00%

Total $338,387 1.50% $350,057 1.72% $337,836 1.80%

Pinnacle Bank classified asset ratio 11.2% 12.0% 13.9

57

• “In-the-Money” client interest rate floors increased $699 million in 2Q20 from March due to down interest rate shock of 150 basis points• During 4Q19, we entered into a $1.5 billion LIBOR rate floor with a five year term. This floor now carries an unrealized gain of ~$75 million

and provides significant P&L benefit as rates fall or remain near zero.• During 1Q20, we unwound $1.3 billion LIBOR rate floor that was entered in 2Q19. This resulted in a ~$17 million gain that is to be accreted

into income over following seven quarters (~$2.5MM quarterly)

Income Statement – Net Interest Income

Rate Floors – Annual Interest Income Contribution (in millions)

Annual Interest Income Contribution (in millions)

At 6.30.20 (LIBOR ~0.16%)

$1.3B Floor Balance Sheet Hedge unwind ($2.5mm/qtr – 4Q21) $ 9.9

$1.5B Floor Balance Sheet Hedge still in effect 18.2

Client loan floors in note documents 17.7

$ 45.8

Income Statement – Revenue per Common Share

*: excluding gains and losses on sales of investment securities and loss on sale of non-prime automobile portfolio. For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slides 66-67. Note: See slide 68 for peer group utilized in the above analysis. Peer group calculated by aggregating total peer revenues by total peer weighted avg. shares for each quarter.Source: S&P Global

58

$10.20 $10.27

$10.49

$10.73

$11.10

$11.43

$11.74

$12.13

$12.42

$12.92

$13.44$13.54

$13.87$14.05

13.0%

7.3%

5.0% 5.3%

8.8%

11.3%

11.9%

13.0%

11.9%

13.0%

14.5%

11.6% 11.6%

8.8%

4.0%4.5%

3.9%

4.6%

6.4%6.5%

7.3%

6.2% 4.7% 5.0%4.3%

5.0%

6.7%

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

$10.00

$11.00

$12.00

$13.00

$14.00

$15.00

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

Y/Y

Re

ven

ue

per

Sh

are

Gro

wth

Re

ven

ue

per

Sh

are

LTM Revenue Per Common Share Growth vs. Peers

Series1 PNFP Y/Y Growth Peer Median Y/Y Growth

Income Statement – Mortgage Volumes

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

$25,000

$100,000

$175,000

$250,000

$325,000

$400,000

$475,000

$550,000

$625,000

Purchase Money Refinance Gross fees as a % of loans originated

59

60

BHG Financials Strong equity to support business model

Source: BHG Internal Data, unaudited

• Strong performance in 2Q20 despite meaningful increase in reserves• Strong cash position to provide increased liquidity and, thus, better prepare for any potential Pandemic losses

**: Excludes the impact of ORE expense and income, branch rationalization charges, merger-related charges and FHLB restructuring charges. For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slide 66-67.^: 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. Associate retention rate does not include associates at acquired institutions displaced by acquisition. 61

$4

12

.8

$2

05

.0

$4

19

.9

$2

02

.3

$4

24

.9

$2

01

.0

$4

27

.5

$2

06

.2

$4

15

.9

$1

99

.0

$4

41

.0

$2

16

.9

$4

49

.8

$2

14

.8

$4

04

.6

$2

08

.1

$4

14

.3

$2

15

.6

$4

26

.9

$2

05

.4

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

Annualized REV/ Associate Annualized EXP/ Associate

2Q18 to 2Q20(increase of $700 per associate)

2Q18 to 2Q20(increase of $3,100 per associate)

86%

88%

90%

92%

94%

Employee Retention^

Retention %

1.00%

1.25%

1.50%

1.75%

2.00%

2.25%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

Noninterest Expense / Avg Assets GAAP Noninterest Expense / Avg Assets Adjusted**

Income Statement – Expenses

Pre-Tax Pre-Provision Net Revenue Trends

62

Despite difficult operating environment PPNR grows meaningfully in 2Q20.

$-

$0.50

$1.00

$1.50

$2.00

$2.50

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

Net PPNR per Share

Note: For a reconciliation of the above Non-GAAP financial measures to the comparable GAAP measures, see slide 66-67.

March 6 - Pinnacle restricts business travel, inventories personal travel, asks associates to report illness

March 11 - All associate communication re: full pandemic pay

March 18 - Pinnacle offices open as drive-thru only. More than 50% of operations/admin working remotely

March 20 – Loan deferral and relief programs in placeP

inn

acle

Res

po

nse

Pan

dem

ic M

acro

Eve

nts

COVID-19 Response

March

March 11 - WHO declaresPandemic. US restricts travel

March 22 – Various cities and states in our markets initiate “safer at home” restrictions

March 27 – $2 trillion coronavirus economic stimulus bill signed by President Trump, authorizing $349B for Payroll Protection Program (PPP)

April JuneMay July

April 3 – PPP launches nationwide

April 5 – All states where PNFP operates have issued “stay-at-home” orders for residents in the past week

April 16 – Initial allocation of PPP funds exhausted

April 24 – Additional $500B authorized for PPP

April 27 – PPP applications accepted for second round of funding

May 1 – Governors in PNFP markets are finalizing plans to lift “stay-at-home” orders in order to begin re-opening economies

May 7 – 33 million Americans have filed for initial jobless claims since the pandemic began

May 17 – Coronavirus deaths in the US surpass 90,000, and total confirmed cases rose to nearly 1.5 million

Late May – by this time all states in which we have branches have removed “stay-at-home” orders

April 1 – Roll out training for accepting and entering PPP applications

April 3 – Pinnacle begins accepting PPP applications from clients; Pinnacle accepted 2,300+ applications for nearly $900MM in funding requests in first day

April 16 – when funding is exhausted, Pinnacle has secured estimated $1.8B in PPP funding for 6,000+ businesses

April 27 – Pinnacle begins processing applications again

May 1 – Terry Turner sends all associate email with video address that serves as the 1Q 2020 All Associate Meeting; increasing focus on asset quality deemed #1 priority

May 15 – Pinnacle secured more than $2.4B in PPP funding for 14,000+ small businesses to date; new applications continue to be accepted but are few by this time

May 22 – COVID-19 Risk Grading project commences to reassess the risk of entire loan portfolio

June 15 – Pinnacle re-opens lobbies of 9 offices across our footprint

June 22 – Additional 7 offices re-open lobbies to clients

June 30 – Pinnacle concludes first round of additional loan reviews of commercial, small business, and consumer loans deferred or in higher risk industries

June 17 – SBA releases revised PPP loan forgiveness application, adding an EZ version for certain borrowers

June 30 – Senate agrees to extend PPP application deadline to August 8

July 1 – President Trump signs bill extending PPP application deadline to August 8

July 6 – Treasury releases detailed loan-level data on 4.9 million PPP loans made

July 3 – Pinnacle delays further lobby and office re-opening plans amid continued spread of coronavirus in our geographic markets

July 8 – Pinnacle reinforces internal message to process PPP loan applications until revised Aug. 8 deadline

• Generally, most markets in which we operate are in the second or third phase of reopening, with some reverting from phase three to phase two.

• Priorities: Work from home, masks in public spaces required or strongly encouraged, schools remain closed, social distancing, gatherings limited to 10 to 50 or less, high-risk groups encouraged to shelter in place, increased testing;

• Some businesses online: Restaurants, Retail, Hospitality, Churches, Gyms – generally limited to 50% to 75% capacity;

• Elective medical and dental procedures permitted;

• Inconsistent across footprint: Salons/Barbershops, Bars/Taverns, Parks/playgrounds; and

• Still shuttered: Sporting and large venue events. Assisted living and skilled nursing basically off-limits to visitors.

Pinnacle and COVID-19

64

PNFP Markets

Cumulative Cases

July 5, 2020 Population

Case Rate per 100k

July 5, 2020

Atlanta 45,838 6,020,364 761.38

Charlotte 23,315 3,099,563 752.20

Raleigh-Durham-Chapel Hill 14,879 2,035,152 731.10

Triad 10,981 1,617,368 678.94

Charleston 15,025 1,521,218 987.70

Greenville/Spartanburg 10,088 1,240,262 813.38

Chattanooga 4,390 690,136 636.11

Knoxville 1,845 754,419 244.56

Memphis 15,730 1,346,045 1,168.61

Nashville/Murfreesboro 20,472 1,718,451 1,191.31

Roanoke 1,078 313,222 344.16

Totals 163,641 20,356,200 803.89

Other Comparables

Chicago 139,417 9,568,401 1,457.06

Los Angeles 124,521 13,214,799 942.28

New York City 492,039 19,216,182 2,560.55

Sources: Departments of Health, USAFacts.org. Case data as of 7/5.

PNFP Markets

Cumulative Tests

July 5, 2020 Population

Tests per 100k

July 5, 2020

Georgia 1,119,577 10,617,423 10,544.72

North Carolina 1,036,838 10,488,084 9,885.87

South Carolina 473,543 5,148,714 9,197.31

Tennessee 895,796 6,829,174 13,117.19

Virginia 712,350 8,535,519 8,345.71

Totals 4,238,104 41,618,914 10,183.12

Other Comparables

Illinois 1,761,706 12,671,821 13,902.55

California 4,680,138 39,512,223 11,844.79

New York/New Jersey 5,768,443 28,335,751 20,357.47

Sources: Departments of Health. Case data as of 7/5.

• Significant positive feedback from client base

• Roughly 14,000 applications and $2.3B in funding

• Fees +$72mm

Pinnacle and COVID-19

PPP Loan Stratification Table as of 6/30/2020(dollars in thousands)

SBA Fee

App Count*

Approved Dollars *

Average Ticket

1% (> $350k) 135 $481,987 $3,570

3% ($350k to > $2mm) 1,281 $941,408 $735

5% ($2mm and above) 12,752 $867,919 $69

14,168 $2,291,313

*Application count and approved dollars have been reduced for PPP loans returned to the SBA as of June 30, 2020 – approximately $161 mm returned. Research indicates that $468mm in PPP loans were to borrowers who previously did not have a loan or deposit account at PNFP previously.

QuarterEstimate of Fee Recognition

by Quarter #

2Q20 10%

3Q20 13%

4Q20 37%

1Q21 12%

2Q21 8%

3Q21 7%

4Q21 6%

1Q22 6%

2Q22 1%

# Preliminary estimate of PPP loan fee recognition over life of loans. Quarterly distribution considers both accretion of fee income over life of loan until forgiveness when the residual balance of loan fees would be recognized. Estimates do not include interest component.

COVID-19ImpactedIndustries

Approved Dollars

Hotel $ 42,392

Restaurant 179,220

Retail 187,392

Entertainment 53,099

65

Income StatementReconciliation of Non-GAAP Financial Measures

66

Income Statement Reconciliation of Non-GAAP Financial Measures

67

Peer Group

Institution Name Ticker City, StatePinnacle Financial Partners PNFP Nashville, TN

Associated Banc-Corp ASB Green Bay, WIBancorpSouth, Inc. BXS Tupelo, MS

Bank of the Ozarks, Inc. OZRK Little Rock, ARChemical Financial Corporation CHFC Midland, MI

Cullen/Frost Bankers, Inc. CFR San Antonio, TXF.N.B. Corporation FNB Pittsburgh, PA

First Horizon National Corporation FHN Memphis, TNFulton Financial Corporation FULT Lancaster, PAHancock Holding Company HWC Gulfport, MSIBERIABANK Corporation IBKC Lafayette, LA

MB Financial, Inc. MBFI Chicago, ILOld National Bancorp ONB Evansville, IN

PacWest Bancorp PACW Beverly Hills, CAProsperity Bancshares, Inc. PB Houston, TX

Sterling Bancorp STL Montebello, NYSynovus Financial Corp. SNV Columbus, GA

TCF Financial Corporation TCF Wayzata, MNTrustmark Corporation TRMK Jackson, MS

UMB Financial Corporation UMBF Kansas City, MOUmpqua Holdings Corporation UMPQ Portland, OR

United Bankshares, Inc. UBSI Charleston, WVValley National Bancorp VLY Wayne, NJ

Western Alliance Bancorporation WAL Phoenix, AZWintrust Financial Corporation WTFC Rosemont, IL

68

Investor CallSECOND QUARTER 2020

M. TERRY TURNER, PRESIDENT AND CEOHAROLD R. CARPENTER, EVP AND CFOTIM HUESTIS, EVP AND CHIEF CREDIT OFFICER

Investor Call...Jul 01, 2020 · M. TERRY TURNER, PRESIDENT AND CEO HAROLD R. CARPENTER, EVP AND...

Documents

Transcript of Investor Call...Jul 01, 2020 · M. TERRY TURNER, PRESIDENT AND CEO HAROLD R. CARPENTER, EVP AND...