EX-99.1 2 a1q22pnfpearningsrelease.htm EX-99.1 Document

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

PNFP REPORTS DILUTED EPS OF $1.65, ROAA OF 1.32% AND ROATCE OF 15.63% FOR 1Q2022
Annualized linked-quarter loan growth of 18.5% for 1Q2022, 22.5% exclusive of PPP paydowns

NASHVILLE, TN, April 18, 2022 - Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $1.65 for the quarter ended March 31, 2022, compared to net income per diluted common share of $1.61 for the quarter ended March 31, 2021, an increase of approximately 2.5 percent. Items significantly impacting the comparability between the two periods were:
•PPP income in the first quarter of 2022 was $10.8 million, compared to $23.0 million in the first quarter of 2021. PPP loans at March 31, 2022 were $157.2 million, down from $371.1 million at Dec. 31, 2021 and $2.2 billion at March 31, 2021.
•Income from the firm’s sale of residential mortgage loans amounted to $4.1 million during the first quarter of 2022, compared to $13.7 million during the first quarter of 2021.
•On March 1, 2022, Pinnacle Bank acquired the remaining equity of JB&B Capital, LLC ("JB&B"), a commercial equipment leasing business in Knoxville, TN, in a cash transaction. Pinnacle had previously acquired 20 percent of JB&B's equity in 2017. As a result of the acquisition of JB&B, first quarter 2022 net income per diluted common share increased by $0.04 per share, which includes approximately $5.5 million of gains resulting from remeasurement of the previous investment offset in part by approximately $1.0 million of provision for credit losses recorded in accordance with CECL for the outstanding leases at JB&B. Lease balances attributable to the JB&B acquisition approximated $60.7 million at March 31, 2022.

"In our view, the economic landscape remains fragile," said M. Terry Turner, Pinnacle's president and chief executive officer. "Russia's invasion of Ukraine and the various economic sanctions enacted in response are likely to continue to weigh on our economy. The full impact of the ongoing supply chain issues, inflation, inverted yield curves and a potential recession are as yet unknown. Our response thus far has been to seek to protect tangible book value, to initiate a number of targeted loan portfolio reviews, including our COVID-impacted and commercial real estate portfolios, and to heighten our diligence on cybersecurity and fraud detection.
"Despite the uncertain economic environment, we are pleased with our first quarter performance and remain optimistic for 2022," Turner said. "As a result of our prolific hiring over the last few years, we had anticipated rapid loan growth this year based primarily on market share movement as the new revenue producers continue to consolidate their clients from their previous employers to us. Not only are we realizing outsized loan growth in our legacy Tennessee, Carolinas and Virginia markets, but we are also having great success in our market extensions to Atlanta, Washington, D.C., Birmingham, and Huntsville. The prolific hiring continued during the first quarter with 28 additional revenue producers. The loan growth we experienced during the first quarter, along with our current loan pipelines and our continued ability to attract new associates, have bolstered our confidence that we could meet or exceed mid-teen percentage loan growth for this year."
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BALANCE SHEET GROWTH:
Total assets at March 31, 2022 were $39.4 billion, an increase of approximately $4.1 billion from March 31, 2021, reflecting a year-over-year increase of 11.6 percent. A further analysis of select balance sheet trends follows:
Balances at Balances at
(dollars in thousands)March 31, 2022December 31, 2021Linked-Quarter
Annualized
% Change		March 31, 2021Year-over-Year
% Change
Loans$24,499,022 $23,414,262 18.5%$23,086,701 6.1%
Less PPP loans157,180371,118(230.6)%2,221,409(92.9)%
Loans excluding PPP loans24,341,84223,043,14422.5%20,865,29216.7%
Securities and other interest-earning assets10,704,15711,046,895(12.4)%8,237,83129.9%
Total interest-earning assets excluding PPP loans$35,045,999 $34,090,039 11.2%$29,103,123 20.4%
Core Deposits:
Noninterest-bearing deposits10,986,19410,461,07120.1%8,103,94335.6%
Interest-bearing core deposits(1)
19,412,48918,855,84011.8%16,857,44715.2%
Noncore deposits and other funding(2)
3,428,8503,452,034(2.7)%5,062,784(32.3)%
Total funding $33,827,533 $32,768,945 12.9%$30,024,174 12.7%
(1): Interest-bearing core deposits are interest-bearing deposits, money market accounts, time deposits less than $250,000 and reciprocating time and money market deposits issued through the IntraFi Network.
(2): Noncore deposits and other funding consists of time deposits greater than $250,000, securities sold under agreements to repurchase, public funds, brokered deposits, FHLB advances and subordinated debt.

"During the first quarter, loan growth approximated an annualized rate of 18.5 percent when compared to balances at Dec. 31, 2021. Excluding the impact of PPP, loans increased at an annualized rate of 22.5 percent," Turner said. "As we have been highlighting for the past several quarters, replacing last year's PPP revenue and extraordinary volume of mortgage origination fees is primarily a function of new loan growth this year, and we are off to a tremendous start. Additionally, we were pleased with our core deposit growth in the first quarter of 14.7 percent and that our average deposit costs decreased during the quarter to 13 basis points."

PRE-TAX, PRE-PROVISION NET REVENUES (PPNR):
Pre-tax, pre-provision net revenues (PPNR) for the quarter ended March 31, 2022 were $160.3 million, a decrease of 1.4 percent from the $160.9 million recognized in the quarter ended March 31, 2021.
Three months ended
March 31,
(dollars in thousands)20222021 % change
Revenues:
Net interest income$239,475 $222,870 7.5 %
Noninterest income103,496 92,709 11.6 %
Total revenues342,971 315,579 8.7 %
Noninterest expense182,661 154,696 18.1 %
Pre-tax, pre-provision net revenue (PPNR)$160,310 $160,883 (0.4)%
Adjustments:
Investment losses on sales of securities, net61 — NM
ORE expense (benefit)105 (13)NM
Adjusted PPNR$160,476 $160,870 (0.2)%

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•Revenue per fully diluted common share was $4.52 for the three months ended March 31, 2022, compared to $4.47 for the fourth quarter of 2021 and $4.17 for the first quarter of 2021, an 8.4 percent year-over-year growth rate.
•Net interest income for the quarter ended March 31, 2022 was $239.5 million, compared to $238.8 million for the fourth quarter of 2021 and $222.9 million for the first quarter of 2021, a year-over-year growth rate of 7.5 percent.
◦Revenues from PPP loans approximated $10.8 million in the first quarter of 2022, compared to $15.5 million in the fourth quarter of 2021 and $23.0 million in the first quarter of 2021. At March 31, 2022, remaining unamortized fees for PPP loans were approximately $5.0 million.
◦Included in net interest income for the first quarter of 2022 was $1.7 million of discount accretion associated with fair value adjustments, compared to $2.2 million of discount accretion recognized in the fourth quarter of 2021 and $3.8 million in the first quarter of 2021. There remains $7.0 million of purchase accounting discount accretion as of March 31, 2022.
•Noninterest income for the quarter ended March 31, 2022 was $103.5 million, compared to $100.7 million for the quarter ended Dec. 31, 2021, a linked-quarter annualized increase of 11.0 percent. Compared to $92.7 million for the first quarter of 2021, noninterest income grew 11.6 percent.
◦Wealth management revenues, which include investment, trust and insurance services, were $20.7 million for the first quarter of 2022, compared to $19.3 million for the fourth quarter of 2021, a linked-quarter annualized increase of 28.2 percent. Compared to $16.1 million for the first quarter of 2021, wealth management revenues were up 28.5 percent.
◦First quarter 2022 gains from investments in joint ventures and other funds was $1.7 million, compared to $3.4 million in the first quarter of 2021 and $4.1 million in the fourth quarter of 2021.
◦Service charges on deposit accounts were $11.0 million for the quarter ended March 31, 2022, compared to $12.7 million for the quarter ended Dec. 31, 2021 and $8.3 million for the quarter ended March 31, 2021. Fluctuations in these accounts are directly correlated with transaction volume and include NSF fees, analysis fees and check card interchange revenues.
◦Income from the firm's investment in BHG was $33.7 million for the quarter ended March 31, 2022, up from $30.8 million for the quarter ended Dec. 31, 2021 and $29.0 million for the quarter ended March 31, 2021.
◦Other noninterest income was $34.1 million for the quarter ended March 31, 2022, compared to $33.2 million for the quarter ended Dec. 31, 2021 and $25.7 million for the quarter ended March 31, 2021, a linked-quarter annualized increase of 10.4 percent and year-over-year growth of 32.8 percent, respectively. The year-over-year growth was primarily impacted by the $5.5 million gain on remeasurement of our investment in JB&B.
•Noninterest expense for the quarter ended March 31, 2022 was $182.7 million, compared to $170.4 million in the fourth quarter of 2021 and $154.7 million in the first quarter of 2021, reflecting a linked-quarter annualized growth rate of 28.7 percent and a year-over-year increase of 18.1 percent.
◦Salaries and employee benefits were $121.9 million in the first quarter of 2022, compared to $110.0 million in the fourth quarter of 2021 and $102.7 million in the first quarter of 2021, reflecting a linked-quarter annualized growth rate of 43.0 percent and a year-over-year increase of 18.6 percent. Total full-time equivalent associates amounted to 2,988 associates at March 31, 2022, compared to 2,621 full-time equivalent associates at March 31, 2021, an increase of 14.0 percent.
◦Noninterest expense categories, other than salaries and employee benefits, were $60.8 million in the first quarter of 2022, compared to $60.4 million in the fourth quarter of 2021 and $52.0 million in the first quarter
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of 2021, reflecting a linked-quarter annualized growth rate of less than 1 percent and a year-over-year increase of 17.0 percent.

"We continue to highlight PPNR and our efforts to grow PPNR consistently," said Harold R. Carpenter, Pinnacle’s chief financial officer. "PPNR was flattish compared to last year’s first quarter, but given the headwinds of reduced PPP revenues and reduced revenues from our residential mortgage business, we are pleased with our first quarter PPNR results. In addition to our anticipated loan growth this year, we believe that BHG's performance will result in at least 20 percent noninterest income growth in 2022 and that our wealth management businesses will also have a strong year given market volatility and several significant hires that were accomplished in 2021. As to expenses, compensation costs increased nearly 19 percent over last year, due primarily to increased headcount, annual merit raises and seasonal payroll taxes. We are optimistic that our hiring model will continue to provide us even more opportunities to add revenue producers this year. As a result, including the impact of inflation and the addition of JB&B on our expense base, we believe our noninterest expenses for 2022 will approximate mid-teen percentage increase over 2021 noninterest expense.
"We all appreciated that growing PPNR in 2022 would be challenging for the entire banking industry. We believe our loan growth momentum going into the second quarter is very strong, and assuming rates continue to increase and eliminate the impact of a larger percentage of our loan floors, not only should our revenue growth accelerate, but our margins should begin to expand as well."

PROFITABILITY:
Three months ended
March 31, 2022December 31, 2021March 31, 2021
Net interest margin2.89 %2.96 %3.02 %
Efficiency ratio53.26 %50.20 %49.02 %
Return on average assets1.32 %1.39 %1.42 %
Return on average tangible common equity (TCE)15.63 %16.13 %17.16 %
Book value per common share$66.30 $66.89 $62.33 
Tangible book value per common share$41.65 $42.55 $37.88 

•Net interest margin was 2.89 percent for the first quarter of 2022, compared to 2.96 percent for the fourth quarter of 2021 and 3.02 percent for the first quarter of 2021.
◦Impacting the firm’s net interest margin in the first quarter of 2022 and first and fourth quarters of 2021 were both PPP loans and the firm’s decision early in the pandemic to maintain additional on-balance sheet liquidity. The firm estimates its first quarter 2022 and fourth quarter 2021 net interest margin was negatively impacted by approximately 29 and 25 basis points, respectively, as a result of PPP loans and additional liquidity, compared to approximately 27 basis points for the first quarter 2021.
•During the quarter ended March 31, 2022, book value decreased by $0.59 per share and tangible book value decreased by $0.90 per share when compared to the fourth quarter of 2021, due in large part to approximately $132.8 million decrease in the net unrealized fair value of the firm's available-for-sale investment securities portfolio caused by rising rates. Additionally, during the first quarter, the firm transferred approximately $1.1 billion of available-for-sale securities to held-to-maturity.

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"We remain pleased with our profitability metrics for the first quarter," Carpenter said. "There is much discussion about the rate environment and its impact on our balance sheet sensitivity going forward. We believe our balance sheet is positioned more conservatively than most given our disciplined adherence to loan floors over the last few years. Over the course of the last few weeks and since the most recent increase in Fed funds rates, our loan yields have expanded by almost 6 basis points, while our total deposit costs have increased approximately 2 basis points. Thus far, and we are very early in the up-rate cycle, we are pleased with how our relationship managers are working with their clients and setting expectations for the next several quarters.
"Additionally, the impact of increased rates on tangible book value has garnered attention. Our tangible book value per share decreased by 2.1 percent this quarter, primarily due to the impact of rising rates on accumulated other comprehensive income. Early in the first quarter of 2022, we transferred approximately $1.1 billion of available-for-sale securities to held-to-maturity to help counter the impact of rising rates on tangible equity. Tangible book value per share is a key initiative of ours, so we will continue to position our firm to grow tangible book value over the long term."

MAINTAINING A STRONG BALANCE SHEET:
Three months ended or as of
March 31, 2022December 31, 2021March 31, 2021
Annualized net loan charge-offs to avg. loans(1)
0.05 %0.14 %0.20 %
Nonperforming assets to total loans, ORE and other nonperforming assets (NPAs)0.14 %0.17 %0.36 %
Classified asset ratio (Pinnacle Bank) (2)
3.60 %4.10 %7.30 %
Allowance for credit losses (ACL) to total loans 1.07 %1.12 %1.22 %
ACL to total loans, excluding PPP1.07 %1.14 %1.35 %
(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.

•Provision for credit losses was $2.7 million in the first quarter of 2022 and the fourth quarter of 2021, compared to $7.2 million in the first quarter of 2021. Net charge-offs were $3.0 million for the quarter ended March 31, 2022, compared to $8.1 million for the quarter ended Dec. 31, 2021 and $11.4 million for the quarter ended March 31, 2021.
•Nonperforming assets were $35.1 million at March 31, 2022, compared to $40.1 million at Dec. 31, 2021 and $82.8 million at March 31, 2021. The ratio of the allowance for credit losses to nonperforming loans at March 31, 2022 was 982.9 percent, compared to 833.8 percent at Dec. 31, 2021 and 389.4 percent at March 31, 2021.
•Classified assets were $137.0 million at March 31, 2022, compared to $151.3 million at Dec. 31, 2021 and $244.9 million at March 31, 2021.

"Our credit performance has been strong for many years, and this was even more evident in the first quarter," Carpenter said. "Several of our loan credit metrics are at the lowest point they have been at in many years. During the first quarter, our allowance for credit losses to total loans (excluding PPP loans) (ACL) decreased from 1.14 percent at year end 2021 to 1.07 percent at March 31, 2022. We believe that continued reductions in our ACL are possible through most of 2022."

WEBCAST AND CONFERENCE CALL INFORMATION
Pinnacle will host a webcast and conference call at 8:30 a.m. CT on April 19, 2022, to discuss first quarter 2022 results and other matters. To access the call for audio only, please call 1-877-602-7944. For the presentation and streaming audio, please access the webcast on the investor relations page of Pinnacle's website at www.pnfp.com.
For those unable to participate in the webcast, it will be archived on the investor relations page of Pinnacle's website at
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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 bank in the Nashville-Murfreesboro-Franklin MSA, according to 2021 deposit data from the FDIC, is listed by Forbes among the top 25 banks in the nation and earned a spot on the 2022 list of 100 Best Companies to Work For® in the U.S., its sixth consecutive appearance. American Banker recognized Pinnacle as one of America’s Best Banks to Work For nine years in a row and No. 1 among banks with more than $11 billion in assets in 2021.
Pinnacle owns a 49 percent interest in Bankers Healthcare Group (BHG), which provides innovative, hassle-free financial solutions to healthcare practitioners and other licensed 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 $39.4 billion in assets as of March 31, 2022. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in 15 primarily urban markets across the Southeast.
Additional information concerning Pinnacle, which is included in the Nasdaq Financial-100 Index, can be accessed at www.pnfp.com.
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Forward-Looking Statements
All statements, other than statements of historical fact, included in this press release, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "expect," "anticipate," "intend," "may," "should," "plan," "believe," "seek," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (i) deterioration in the financial condition of borrowers of Pinnacle Bank and its subsidiaries or BHG resulting in significant increases in loan losses and provisions for those losses and, in the case of BHG, substitutions; (ii) the effects of new outbreaks of COVID-19, including actions taken by governmental officials to curb the spread of the virus, and the resulting 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) further public acceptance of the booster shots of the vaccines that were developed against the virus as well as the decisions of governmental agencies with respect to vaccines including recommendations related to booster shots and requirements that seek to mandate that individuals receive or employers require that their employees receive the vaccine; (iv) those vaccines' efficacy against the virus, including new variants; (v) 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; (vi) 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; (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 compression to net interest margin; (x) adverse conditions in the national or local economies including in Pinnacle Financial's markets throughout Tennessee, North Carolina, South Carolina, Georgia, Alabama and Virginia, particularly in commercial and residential real estate markets, including the negative impact of inflationary pressures on our customers and their businesses; (xi) the results of regulatory examinations; (xii) Pinnacle Financial's ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions; (xiii) difficulties and delays in integrating acquired businesses or fully realizing costs savings and other benefits from acquisitions; (xiv) BHG's ability to profitably grow its business and successfully execute on its business plans; (xv) risks of expansion into new geographic or product markets; (xvi) 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; (xvii) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or other intangible assets; (xviii) the ineffectiveness of Pinnacle Bank's hedging strategies, or the unexpected counterparty failure or hedge failure of the underlying hedges; (xix) 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; (xx) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xxi) 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; (xxii) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xxiii) 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; (xxiv) 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; (xxv) 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 or all or a portion of their ownership interests in BHG (triggering a similar sale by Pinnacle Financial and Pinnacle Bank) if not prohibited from doing so by Pinnacle Financial or Pinnacle Bank; (xxvi) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxvii) fluctuations in the valuations of Pinnacle Financial's equity investments and the ultimate success of such investments; (xxiii) the availability of and access to capital; (xxix) 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 (xxx) 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, 2021, and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC and available on the
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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, earnings per diluted common share, PPNR, 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, FHLB restructuring charges, hedge termination charges and other matters for the accounting periods presented. This release also includes non-GAAP financial measures which exclude the impact of loans originated under the PPP. 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 2022 versus certain periods in 2021 and to internally prepared projections.

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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS – UNAUDITED
 (dollars in thousands, except for share and per share data)March 31, 2022December 31, 2021March 31, 2021
ASSETS
Cash and noninterest-bearing due from banks$187,093 $188,287 $189,251 
Restricted cash29,680 82,505 162,834 
Interest-bearing due from banks3,103,008 3,830,747 2,780,137 
Federal funds sold and other— — 55,186 
Cash and cash equivalents3,319,781 4,101,539 3,187,408 
Securities purchased with agreement to resell1,332,753 1,000,000 450,000 
Securities available-for-sale, at fair value3,569,723 4,914,194 3,677,019 
Securities held-to-maturity (fair value of $2.4 billion, $1.2 billion and $1.0 billion, net of allowance for credit losses of $1.1 million, $161 and $198 at March 31, 2022, Dec. 31, 2021 and March 31, 2021, respectively)2,566,386 1,155,958 1,014,345 
Consumer loans held-for-sale67,224 45,806 85,769 
Commercial loans held-for-sale35,383 17,685 12,541 
Loans24,499,022 23,414,262 23,086,701 
Less allowance for credit losses(261,618)(263,233)(280,881)
Loans, net24,237,404 23,151,029 22,805,820 
Premises and equipment, net296,779 288,182 289,515 
Equity method investment382,256 360,833 327,512 
Accrued interest receivable95,147 98,813 98,477 
Goodwill1,850,951 1,819,811 1,819,811 
Core deposits and other intangible assets31,997 33,819 40,130 
Other real estate owned8,237 8,537 10,651 
Other assets1,606,357 1,473,193 1,480,707 
Total assets$39,400,378 $38,469,399 $35,299,705 
LIABILITIES AND STOCKHOLDERS' EQUITY 
Deposits: 
Noninterest-bearing$10,986,194 $10,461,071 $8,103,943 
Interest-bearing6,838,659 6,530,015 5,814,689 
Savings and money market accounts12,416,101 12,179,663 11,361,620 
Time2,054,860 2,133,784 3,012,688 
Total deposits32,295,814 31,304,533 28,292,940 
Securities sold under agreements to repurchase219,530 152,559 172,117 
Federal Home Loan Bank advances888,870 888,681 888,115 
Subordinated debt and other borrowings423,319 423,172 671,002 
Accrued interest payable8,575 12,504 15,359 
Other liabilities283,320 377,343 300,648 
Total liabilities34,119,428 33,158,792 30,340,181 
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, 2022, Dec. 31, 2021 and March 31, 2021, respectively217,126 217,126 217,126 
Common stock, par value $1.00; 180.0 million shares authorized; 76.4 million, 76.1 million and 76.1 million shares issued and outstanding at March 31, 2022, Dec. 31, 2021, and March 31, 2021, respectively76,377 76,143 76,088 
Additional paid-in capital3,045,914 3,045,802 3,027,311 
Retained earnings1,972,686 1,864,350 1,515,451 
Accumulated other comprehensive income (loss), net of taxes(31,153)107,186 123,548 
Total stockholders' equity5,280,950 5,310,607 4,959,524 
Total liabilities and stockholders' equity$39,400,378 $38,469,399 $35,299,705 
This information is preliminary and based on company data available at the time of the presentation.
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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
(dollars in thousands, except for share and per share data)Three months ended
 March 31, 2022December 31, 2021March 31, 2021
Interest income:
Loans, including fees$227,047 $230,026 $227,372 
Securities
Taxable11,048 9,696 7,728 
Tax-exempt17,446 16,931 15,498 
Federal funds sold and other3,076 2,540 1,319 
Total interest income258,617 259,193 251,917 
Interest expense:
Deposits10,250 10,648 17,468 
Securities sold under agreements to repurchase56 54 72 
FHLB advances and other borrowings8,836 9,728 11,507 
Total interest expense19,142 20,430 29,047 
Net interest income239,475 238,763 222,870 
Provision for credit losses2,720 2,675 7,235 
Net interest income after provision for credit losses236,755 236,088 215,635 
Noninterest income:
Service charges on deposit accounts11,030 12,663 8,307 
Investment services10,691 11,081 8,191 
Insurance sales commissions4,036 2,328 3,225 
Gains on mortgage loans sold, net4,066 4,244 13,666 
Investment gains (losses) on sales, net(61)393 — 
Trust fees5,973 5,926 4,687 
Income from equity method investment33,655 30,844 28,950 
Other noninterest income34,106 33,244 25,683 
Total noninterest income103,496 100,723 92,709 
Noninterest expense:
Salaries and employee benefits121,852 110,048 102,728 
Equipment and occupancy25,536 24,997 23,220 
Other real estate, net105 37 (13)
Marketing and other business development3,777 4,562 2,349 
Postage and supplies2,371 2,191 1,806 
Amortization of intangibles1,871 2,057 2,206 
Other noninterest expense27,149 26,525 22,400 
Total noninterest expense182,661 170,417 154,696 
Income before income taxes157,590 166,394 153,648 
Income tax expense 28,480 32,866 28,220 
Net income129,110 133,528 125,428 
Preferred stock dividends(3,798)(3,798)(3,798)
Net income available to common shareholders$125,312 $129,730 $121,630 
Per share information:
Basic net income per common share$1.66 $1.72 $1.61 
Diluted net income per common share$1.65 $1.71 $1.61 
Weighted average common shares outstanding:
Basic75,654,986 75,523,052 75,372,883 
Diluted75,930,372 76,024,700 75,657,149 
This information is preliminary and based on company data available at the time of the presentation.
10

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands)MarchDecemberSeptemberJuneMarchDecember
202220212021202120212020
Balance sheet data, at quarter end:
Commercial and industrial loans$8,213,204 7,703,428 7,079,431 6,771,254 6,355,119 6,239,588 
Commercial real estate - owner occupied loans3,124,275 3,048,822 2,954,519 2,817,689 2,869,785 2,802,227 
Commercial real estate - investment loans4,707,761 4,607,048 4,597,736 4,644,551 4,782,712 4,565,040 
Commercial real estate - multifamily and other loans718,822 614,656 621,471 724,253 790,469 638,344 
Consumer real estate  - mortgage loans3,813,252 3,680,684 3,540,439 3,335,537 3,086,916 3,099,172 
Construction and land development loans3,277,029 2,903,017 3,096,961 2,791,611 2,568,969 2,901,746 
Consumer and other loans487,499 485,489 459,182 440,124 411,322 379,515 
Paycheck protection program loans157,180 371,118 708,722 1,372,916 2,221,409 1,798,869 
Total loans24,499,022 23,414,262 23,058,461 22,897,935 23,086,701 22,424,501 
Allowance for credit losses(261,618)(263,233)(268,635)(273,747)(280,881)(285,050)
Securities6,136,109 6,070,152 5,623,890 5,326,908 4,691,364 4,615,040 
Total assets39,400,378 38,469,399 36,523,936 35,412,309 35,299,705 34,932,860 
Noninterest-bearing deposits10,986,194 10,461,071 9,809,691 8,926,200 8,103,943 7,392,325 
Total deposits32,295,814 31,304,533 29,369,807 28,217,603 28,292,940 27,705,575 
Securities sold under agreements to repurchase219,530 152,559 148,240 177,661 172,117 128,164 
FHLB advances888,870 888,681 888,493 888,304 888,115 1,087,927 
Subordinated debt and other borrowings423,319 423,172 542,712 671,994 671,002 670,575 
Total stockholders' equity5,280,950 5,310,607 5,191,798 5,101,231 4,959,524 4,904,611 
Balance sheet data, quarterly averages:
Total loans$23,848,533 23,225,735 22,986,835 23,179,803 22,848,086 22,524,683 
Securities6,143,664 5,813,636 5,451,232 5,036,786 4,666,269 4,567,872 
Federal funds sold and other4,799,946 4,356,113 3,743,074 3,143,078 3,356,199 3,621,623 
Total earning assets34,792,143 33,395,484 32,181,141 31,359,667 30,870,554 30,714,178 
Total assets38,637,221 37,132,078 35,896,130 35,053,772 34,659,132 34,436,765 
Noninterest-bearing deposits10,478,403 10,240,393 9,247,382 8,500,465 7,620,665 7,322,393 
Total deposits31,538,985 30,034,026 28,739,871 28,013,659 27,620,784 27,193,256 
Securities sold under agreements to repurchase179,869 141,781 164,837 173,268 143,586 121,331 
FHLB advances888,746 888,559 888,369 888,184 934,662 1,250,848 
Subordinated debt and other borrowings441,755 484,389 586,387 674,162 673,662 673,419 
Total stockholders' equity5,331,405 5,262,586 5,176,625 5,039,608 4,953,656 4,852,373 
Statement of operations data, for the three months ended:
Interest income$258,617 259,193 260,868 259,236 251,917 257,047 
Interest expense19,142 20,430 23,325 26,011 29,047 36,062 
Net interest income239,475 238,763 237,543 233,225 222,870 220,985 
Provision for credit losses2,720 2,675 3,382 2,834 7,235 9,180 
Net interest income after provision for credit losses236,755 236,088 234,161 230,391 215,635 211,805 
Noninterest income103,496 100,723 104,095 98,207 92,709 83,444 
Noninterest expense182,661 170,417 168,851 166,140 154,696 161,305 
Income before taxes157,590 166,394 169,405 162,458 153,648 133,944 
Income tax expense28,480 32,866 32,828 30,668 28,220 23,068 
Net income129,110 133,528 136,577 131,790 125,428 110,876 
Preferred stock dividends(3,798)(3,798)(3,798)(3,798)(3,798)(3,798)
Net income available to common shareholders$125,312 129,730 132,779 127,992 121,630 107,078 
Profitability and other ratios:
Return on avg. assets (1)
1.32 %1.39 %1.47 %1.46 %1.42 %1.24 %
Return on avg. equity (1)
9.53 %9.78 %10.18 %10.19 %9.96 %8.78 %
 Return on avg. common equity (1)
9.94 %10.20 %10.62 %10.65 %10.41 %9.19 %
Return on avg. tangible common equity (1)
15.63 %16.13 %16.98 %17.32 %17.16 %15.37 %
Common stock dividend payout ratio (16)
12.94 %10.65 %11.13 %11.73 %13.69 %15.84 %
Net interest margin (2)
2.89 %2.96 %3.03 %3.08 %3.02 %2.97 %
Noninterest income to total revenue (3)
30.18 %29.67 %30.47 %29.63 %29.38 %27.41 %
Noninterest income to avg. assets (1)
1.09 %1.08 %1.15 %1.12 %1.08 %0.96 %
Noninterest exp. to avg. assets (1)
1.92 %1.82 %1.87 %1.90 %1.81 %1.86 %
Efficiency ratio (4)
53.26 %50.20 %49.42 %50.13 %49.02 %52.99 %
Avg. loans to avg. deposits
75.62 %77.33 %79.98 %82.74 %82.72 %82.83 %
Securities to total assets
15.57 %15.78 %15.40 %15.04 %13.29 %13.21 %
This information is preliminary and based on company data available at the time of the presentation.

11

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
(dollars in thousands)Three months endedThree months ended
March 31, 2022March 31, 2021
 Average BalancesInterestRates/ YieldsAverage BalancesInterestRates/ Yields
Interest-earning assets
Loans (1) (2)
$23,848,533 $227,047 3.94 %$22,848,086 $227,372 4.11 %
Securities
Taxable3,234,641 11,048 1.39 %2,271,325 7,728 1.38 %
Tax-exempt (2)
2,909,023 17,446 2.94 %2,394,944 15,498 3.15 %
Interest-bearing due from banks3,347,804 1,303 0.16 %3,168,308 7130.09 %
Resell agreements1,281,746 1,214 0.38 %5,000 — — %
Federal funds sold— — — %22,809 — — %
Other170,396 559 1.33 %160,082 606 1.54 %
Total interest-earning assets34,792,143 $258,617 3.11 %30,870,554 $251,917 3.41 %
Nonearning assets
Intangible assets1,863,730 1,861,386 
Other nonearning assets1,981,348 1,927,192 
Total assets$38,637,221 $34,659,132 
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking6,391,316 2,599 0.16 %5,466,389 2,599 0.19 %
Savings and money market12,587,219 5,124 0.17 %11,321,344 6,713 0.24 %
Time2,082,047 2,527 0.49 %3,212,386 8,156 1.03 %
Total interest-bearing deposits21,060,582 10,250 0.20 %20,000,119 17,468 0.35 %
Securities sold under agreements to repurchase179,869 56 0.13 %143,586 72 0.20 %
Federal Home Loan Bank advances888,746 4,474 2.04 %934,662 4,494 1.95 %
Subordinated debt and other borrowings441,755 4,362 4.00 %673,662 7,013 4.22 %
Total interest-bearing liabilities22,570,952 19,142 0.34 %21,752,029 29,047 0.54 %
Noninterest-bearing deposits10,478,403 — — 7,620,665 — — 
Total deposits and interest-bearing liabilities33,049,355 $19,142 0.23 %29,372,694 $29,047 0.40 %
Other liabilities256,461 332,782 
Stockholders' equity 5,331,405 4,953,656 
Total liabilities and stockholders' equity$38,637,221 $34,659,132 
Net  interest  income 
$239,475 $222,870 
Net interest spread (3)
2.77 %2.86 %
Net interest margin (4)
2.89 %3.02 %
(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 $8.5 million of taxable equivalent income for the three months ended March 31, 2022 compared to $7.3 million for the three months ended March 31, 2021. 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, 2022 would have been 2.88% compared to a net interest spread of 3.00% for the three months ended March 31, 2021.
(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.  

12

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands)MarchDecemberSeptemberJuneMarchDecember
202220212021202120212020
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans$26,616 31,569 46,692 53,105 72,135 73,836 
ORE and other nonperforming assets (NPAs)
8,437 8,537 8,415 9,602 10,651 12,360 
Total nonperforming assets$35,053 40,106 55,107 62,707 82,786 86,196 
Past due loans over 90 days and still accruing interest$1,605 1,607 1,914 1,810 2,833 2,362 
Accruing troubled debt restructurings (5)
$2,317 2,354 2,397 2,428 2,460 2,494 
Accruing purchase credit deteriorated loans$12,661 13,086 12,158 12,400 13,904 14,091 
Net loan charge-offs$2,958 8,077 9,281 9,968 11,397 10,775 
Allowance for credit losses to nonaccrual loans982.9 %833.8 %575.3 %515.5 %389.4 %386.1 %
As a percentage of total loans:
Past due accruing loans over 30 days0.11 %0.09 %0.09 %0.07 %0.09 %0.19 %
Potential problem loans (6)
0.41 %0.47 %0.60 %0.74 %0.70 %0.77 %
Allowance for credit losses (20)
1.07 %1.12 %1.17 %1.20 %1.22 %1.27 %
Nonperforming assets to total loans, ORE and other NPAs0.14 %0.17 %0.24 %0.27 %0.36 %0.38 %
    Classified asset ratio (Pinnacle Bank) (8)
3.6 %4.1 %5.6 %6.8 %7.3 %8.1 %
Annualized net loan charge-offs to avg. loans (7)
0.05 %0.14 %0.16 %0.17 %0.20 %0.19 %
Wtd. avg. commercial loan internal risk ratings (6)
44.945.346.046.145.245.1
Interest rates and yields:
Loans3.94 %4.04 %4.13 %4.11 %4.11 %4.20 %
Securities2.12 %2.08 %2.04 %2.25 %2.29 %2.27 %
Total earning assets3.11 %3.20 %3.32 %3.42 %3.41 %3.44 %
Total deposits, including non-interest bearing0.13 %0.14 %0.17 %0.20 %0.26 %0.33 %
Securities sold under agreements to repurchase0.13 %0.15 %0.14 %0.13 %0.20 %0.21 %
FHLB advances2.04 %2.04 %2.04 %2.03 %1.95 %2.00 %
Subordinated debt and other borrowings4.00 %4.23 %4.45 %4.52 %4.22 %4.13 %
Total deposits and interest-bearing liabilities0.23 %0.26 %0.30 %0.35 %0.40 %0.49 %
Capital and other ratios (8):
Pinnacle Financial ratios:
Stockholders' equity to total assets13.4 %13.8 %14.2 %14.4 %14.0 %14.0 %
Common equity Tier one10.5 %10.9 %10.5 %10.5 %10.3 %10.0 %
Tier one risk-based11.2 %11.7 %11.3 %11.3 %11.2 %10.9 %
Total risk-based13.3 %13.8 %14.0 %14.5 %14.5 %14.3 %
Leverage9.5 %9.7 %9.3 %9.2 %8.9 %8.6 %
Tangible common equity to tangible assets8.5 %8.8 %9.0 %9.0 %8.6 %8.5 %
Pinnacle Bank ratios:
Common equity Tier one11.4 %11.9 %11.7 %11.9 %11.8 %11.4 %
Tier one risk-based11.4 %11.9 %11.7 %11.9 %11.8 %11.4 %
Total risk-based12.1 %12.6 %12.5 %13.1 %13.0 %12.7 %
Leverage9.6 %9.9 %9.7 %9.6 %9.4 %9.1 %
Construction and land development loans
as a percentage of total capital (19)
87.4 %79.1 %89.3 %80.1 %76.0 %89.0 %
Non-owner occupied commercial real estate and
multi-family as a percentage of total capital (19)
243.7 %234.1 %252.4 %248.8 %256.0 %264.0 %
This information is preliminary and based on company data available at the time of the presentation.

13

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands, except per share data)MarchDecemberSeptemberJuneMarchDecember
202220212021202120212020
Per share data:
Earnings per common share – basic$1.66 1.72 1.76 1.70 1.61 1.42 
Earnings per common share - basic, excluding non-GAAP adjustments$1.66 1.71 1.76 1.69 1.61 1.58 
Earnings per common share – diluted$1.65 1.71 1.75 1.69 1.61 1.42 
Earnings per common share - diluted, excluding non-GAAP adjustments$1.65 1.70 1.75 1.68 1.61 1.58 
Common dividends per share$0.22 0.18 0.18 0.18 0.18 0.16 
Book value per common share at quarter end (9)
$66.30 66.89 65.36 64.19 62.33 61.80 
Tangible book value per common share at quarter end (9)
$41.65 42.55 40.98 39.77 37.88 37.25 
Revenue per diluted common share$4.52 4.47 4.50 4.37 4.17 4.03 
Revenue per diluted common share, excluding non-GAAP adjustments$4.52 4.46 4.50 4.37 4.17 4.03 
Investor information:
Closing sales price of common stock on last trading day of quarter$92.08 95.50 94.08 88.29 88.66 64.40 
High closing sales price of common stock during quarter$110.41 104.72 98.00 92.94 93.58 65.51 
Low closing sales price of common stock during quarter$90.46 90.20 83.84 84.25 63.48 35.97 
Closing sales price of depositary shares on last trading day of quarter$26.72 28.21 28.14 29.13 27.62 27.69 
High closing sales price of depositary shares during quarter$28.53 28.99 29.23 29.13 27.83 27.94 
Low closing sales price of depositary shares during quarter$25.63 27.42 28.00 27.38 26.83 26.45 
Other information:
Residential mortgage loan sales:
Gross loans sold$270,793 352,342 347,664 394,299 546,963 479,867 
Gross fees (10)
$5,700 10,098 11,215 15,552 18,793 23,729 
Gross fees as a percentage of loans originated2.11 %2.87 %3.23 %3.94 %3.44 %4.94 %
Net gain on residential mortgage loans sold$4,066 4,244 7,814 6,700 13,666 12,387 
Investment gains (losses) on sales of securities, net (15)
$(61)393 — 366 — — 
Brokerage account assets, at quarter end (11)
$7,158,939 7,187,085 6,597,152 6,344,416 5,974,884 5,509,560 
Trust account managed assets, at quarter end$4,499,911 4,720,290 4,155,510 3,640,932 3,443,373 3,295,198 
Core deposits (12)
$30,398,683 29,316,911 27,170,367 25,857,639 24,961,390 23,510,883 
Core deposits to total funding (12)
89.9 %89.5 %87.8 %86.3 %83.1 %79.5 %
Risk-weighted assets$31,170,258 29,349,534 27,945,624 26,819,277 26,105,158 25,791,896 
Number of offices 119 118 117 116 115 114 
Total core deposits per office$255,451 248,448 232,225 222,911 217,141 206,236 
Total assets per full-time equivalent employee$13,186 13,541 13,188 13,087 13,468 13,262 
Annualized revenues per full-time equivalent employee$465.5 474.1 489.4 491.3 488.3 459.8 
Annualized expenses per full-time equivalent employee$247.9 238.0 241.9 246.3 239.4 246.6 
Number of employees (full-time equivalent)2,988.0 2,841.0 2,769.5 2,706.0 2,621.0 2,634.0 
Associate retention rate (13)
93.1 %93.4 %93.4 %93.3 %94.4 %94.8 %
This information is preliminary and based on company data available at the time of the presentation.


14

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)
MarchDecemberMarch
202220212021
Net interest income$239,475 238,763 222,870 
Noninterest income103,496 100,723 92,709 
Total revenues342,971 339,486 315,579 
Less: Investment (gains) losses on sales of securities, net61 (393)— 
Total revenues excluding the impact of adjustments noted above$343,032 339,093 315,579 
Noninterest expense$182,661 170,417 154,696 
Less: ORE expense105 37 (13)
Noninterest expense excluding the impact of adjustments noted above$182,556 170,380 154,709 
Pre-tax income$157,590 166,394 153,648 
Provision for credit losses2,720 2,675 7,235 
Pre-tax pre-provision net revenue160,310 169,069 160,883 
Adjustments noted above166 (356)(13)
Adjusted pre-tax pre-provision net revenue (14)
$160,476 168,713 160,870 
Noninterest income$103,496 100,723 92,709 
Less: Adjustments as noted above61 (393)— 
Noninterest income excluding the impact of adjustments noted above$103,557 100,330 92,709 
Efficiency ratio (4)
53.26 %50.20 %49.02 %
Adjustments as noted above(0.04)%0.05 %— %
Efficiency ratio (excluding adjustments noted above) (4)
53.22 %50.25 %49.02 %
Total average assets$38,637,221 37,132,078 34,659,132 
Noninterest income to average assets (1)
1.09 %1.08 %1.08 %
Adjustments as noted above— %(0.01)%— %
Noninterest income (excluding adjustments noted above) to average assets (1)
1.09 %1.07 %1.08 %
Noninterest expense to average assets (1)
1.92 %1.82 %1.81 %
Adjustments as noted above— %— %— %
Noninterest expense (excluding adjustments noted above) to average assets (1)
1.92 %1.82 %1.81 %
This information is preliminary and based on company data available at the time of the presentation.

15

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)MarchDecemberSeptemberJuneMarchDecember
202220212021202120212020
Net income available to common shareholders$125,312 129,730 132,779 127,992 121,630 107,078 
Investment (gains) losses on sales of securities, net61 (393)— (366)— — 
ORE expense105 37 (79)(657)(13)1,457 
FHLB restructuring charges— — — — — 10,307 
Hedge termination charges— — — — — 4,673 
Tax effect on adjustments noted above (18)
(43)93 21 267 3 (4,297)
Net income available to common shareholders excluding adjustments noted above $125,435 129,467 132,721 127,236 121,620 119,218 
Basic earnings per common share$1.66 1.72 1.76 1.70 1.61 1.42 
Adjustment due to investment (gains) losses on sales of securities, net— (0.01)— — — — 
Adjustment due to ORE expense— — — (0.01)— 0.02 
Adjustment due to FHLB restructuring charges— — — — — 0.14 
Adjustment due to hedge termination charges— — — — — 0.06 
Adjustment due to tax effect on adjustments noted above (18)
— — — — — (0.06)
Basic earnings per common share excluding adjustments noted above$1.66 1.71 1.76 1.69 1.61 1.58 
Diluted earnings per common share$1.65 1.71 1.75 1.69 1.61 1.42 
Adjustment due to investment (gains) losses on sales of securities, net— (0.01)— — — — 
Adjustment due to ORE expense— — — (0.01)— 0.02 
Adjustment due to FHLB restructuring charges— — — — — 0.14 
Adjustment due to hedge termination charges— — — — — 0.06 
Adjustment due to tax effect on adjustments noted above (18)
— — — — — (0.06)
Diluted earnings per common share excluding the adjustments noted above$1.65 1.70 1.75 1.68 1.61 1.58 
Revenue per diluted common share$4.52 4.47 4.50 4.37 4.17 4.03 
Adjustments as noted above— (0.01)— — — — 
Revenue per diluted common share excluding adjustments noted above$4.52 4.46 4.50 4.37 4.17 4.03 
Book value per common share at quarter end (9)
$66.30 66.89 65.36 64.19 62.33 61.80 
Adjustment due to goodwill, core deposit and other intangible assets(24.65)(24.34)(24.38)(24.42)(24.45)(24.55)
Tangible book value per common share at quarter end (9)
$41.65 42.55 40.98 39.77 37.88 37.25 
Equity method investment (17)
Fee income from BHG, net of amortization$33,655 30,844 30,409 32,071 28,950 24,294 
Funding cost to support investment666 388 379 1,230 1,205 1,222 
Pre-tax impact of BHG32,989 30,456 30,030 30,841 27,745 23,072 
Income tax expense at statutory rates (18)
8,623 7,961 7,850 8,062 7,253 6,031 
Earnings attributable to BHG$24,366 22,495 22,180 22,779 20,492 17,041 
Basic earnings per common share attributable to BHG$0.32 0.30 0.29 0.30 0.27 0.23 
Diluted earnings per common share attributable to BHG$0.32 0.30 0.29 0.30 0.27 0.23 
This information is preliminary and based on company data available at the time of the presentation.

16

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)
MarchDecemberMarch
202220212021
Return on average assets (1)
1.32 %1.39 %1.42 %
Adjustments as noted above— %(0.01)%— %
Return on average assets excluding adjustments noted above (1)
1.32 %1.38 %1.42 %
Tangible assets:
Total assets$39,400,378 38,469,399 35,299,705 
Less:   Goodwill(1,850,951)(1,819,811)(1,819,811)
Core deposit and other intangible assets(31,997)(33,819)(40,130)
Net tangible assets$37,517,430 36,615,769 33,439,764 
Tangible common equity:
Total stockholders' equity$5,280,950 5,310,607 4,959,524 
Less: Preferred stockholders' equity(217,126)(217,126)(217,126)
Total common stockholders' equity5,063,824 5,093,481 4,742,398 
Less: Goodwill(1,850,951)(1,819,811)(1,819,811)
Core deposit and other intangible assets(31,997)(33,819)(40,130)
Net tangible common equity$3,180,876 3,239,851 2,882,457 
Ratio of tangible common equity to tangible assets8.48 %8.85 %8.62 %
Average tangible assets:
Average assets$38,637,221 37,132,078 34,659,132 
Less: Average goodwill(1,830,553)(1,819,811)(1,819,811)
Average core deposit and other intangible assets(33,177)(35,152)(41,575)
Net average tangible assets$36,773,491 35,277,115 32,797,746 
Return on average assets (1)
1.32 %1.39 %1.42 %
Adjustment due to goodwill, core deposit and other intangible assets0.06 %0.07 %0.08 %
Return on average tangible assets (1)
1.38 %1.46 %1.50 %
Adjustments as noted above— %— %— %
Return on average tangible assets excluding adjustments noted above (1)
1.38 %1.46 %1.50 %
Average tangible common equity:
Average stockholders' equity$5,331,405 5,262,586 4,953,656 
Less: Average preferred equity(217,126)(217,126)(217,126)
Average common equity5,114,279 5,045,460 4,736,530 
Less:   Average goodwill(1,830,553)(1,819,811)(1,819,811)
Average core deposit and other intangible assets(33,177)(35,152)(41,575)
Net average tangible common equity$3,250,549 3,190,497 2,875,144 
Return on average equity (1)
9.53 %9.78 %9.96 %
Adjustment due to average preferred stockholders' equity0.41 %0.42 %0.45 %
Return on average common equity (1)
9.94 %10.20 %10.41 %
Adjustment due to goodwill, core deposit and other intangible assets5.69 %5.93 %6.75 %
Return on average tangible common equity (1)
15.63 %16.13 %17.16 %
Adjustments as noted above0.02 %(0.03)%— %
Return on average tangible common equity excluding adjustments noted above (1)
15.65 %16.10 %17.16 %
Allowance for credit losses on loans as a percent of total loans (20)
1.07 %1.12 %1.22 %
Impact of excluding PPP loans from total loans— %0.02 %0.13 %
Allowance as adjusted for the above exclusion of PPP loans from total loans (20)
1.07 %1.14 %1.35 %
This information is preliminary and based on company data available at the time of the presentation.

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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
 
1. Ratios are presented on an annualized basis.
2. Net interest margin is the result of net interest income on a tax equivalent basis divided by average interest earning assets.
3. Total revenue is equal to the sum of net interest income and noninterest income.
4. Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
5. Troubled debt restructurings include loans where the Company, as a result of the borrower's financial difficulties, has granted a credit concession to the borrower (i.e., interest only payments for a significant period of time, extending the maturity of the loan, etc.).  All of these loans continue to accrue interest at the contractual rate. Troubled debt restructurings do not include, beginning with the quarter ended March 31, 2020, loans for which the Company has granted a deferral of interest and/or principal or other modification pursuant to the guidance issued by the FDIC providing for relief under the Coronavirus Aid, Relief and Economic Security Act.
6. Average risk ratings are based on an internal loan review system which assigns a numeric value of 10 to 100 to all loans to commercial entities based on their underlying risk characteristics as of the end of each quarter. The risk rating scale was changed to allow for granularity, if needed, in criticized and classified risk ratings to distinguish accrual status or structural loan issues. A "10" risk rating is assigned to credits that exhibit Excellent risk characteristics, "20" exhibit Very Good risk characteristics, "30" Good, "40" Satisfactory, "50" Acceptable or Average, "60" Watch List, "70" Criticized, "80" Classified or Substandard, "90" Doubtful and "100" Loss (which are charged-off immediately).  Additionally, loans rated "80" or worse that are not nonperforming or restructured loans are considered potential problem loans.  Generally, consumer loans are not subjected to internal risk ratings.
7. 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.
8. Capital ratios are calculated using regulatory reporting regulations enacted for such period and are defined as follows:
Equity to total assets – End of period total stockholders' equity as a percentage of end of period assets.
Tangible common equity to tangible assets - End of period total stockholders' 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.
9. Book value per common share computed by dividing total common stockholders' equity by common shares outstanding. Tangible book value per common share computed by dividing total common stockholders' equity, less goodwill, core deposit and other intangibles by common shares outstanding.
10. Amounts are included in the statement of operations in "Gains on mortgage loans sold, net", net of commissions paid on such amounts.
11. At fair value, based on information obtained from Pinnacle's third party broker/dealer for non-FDIC insured financial products and services.
12. Core deposits include all transaction deposit accounts, money market and savings accounts and all certificates of deposit issued in a denomination of less than $250,000. The ratio noted above represents total core deposits divided by total funding, which includes total deposits, FHLB advances, securities sold under agreements to repurchase, subordinated indebtedness and all other interest-bearing liabilities.
13. Associate retention rate is computed by dividing the number of associates employed at quarter end less the number of associates that have resigned in the last 12 months by the number of associates employed at quarter end. Associate retention rate does not include associates at acquired institutions displaced by merger.
14.  Adjusted pre-tax, pre-provision net revenue excludes the impact of ORE expenses and income, investment gains and losses on sales of securities, FHLB restructuring charges and hedge termination charges.
15. 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.
16. 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.
17. Earnings from equity method investment includes the impact of the issuance of subordinated debt as well as the funding costs of the overall franchise. Income tax expense is calculated using statutory tax rates.
18. Tax effect calculated using the blended statutory rate of 26.14 percent.
19. Calculated using the same guidelines as are used in the Federal Financial Institutions Examination Council's Uniform Bank Performance Report.
20. Effective January 1, 2020 Pinnacle Financial adopted the current expected credit loss accounting standard which requires the recognition of all losses expected to be recorded over a loan's life.

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