PNFP Reports Diluted EPS of $2.54, ROAA of 1.71% and ROATCE of 21.06% for 2Q23

Rhea-AI Summary

Pinnacle Financial Partners, Inc. reported net income per diluted common share of $2.54 for Q2 2023, an increase of 36.6% compared to Q2 2022. Loans grew 11.3% and deposits grew 17.1% on a linked-quarter annualized basis. Total assets increased by approximately $6.8 billion from June 2022 to June 2023.

2Q23 annualized linked-quarter, end-of-period loans grew 11.3%, while deposits grew 17.1%

NASHVILLE, Tenn.--(BUSINESS WIRE)-- Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $2.54 for the quarter ended June 30, 2023, compared to net income per diluted common share of $1.86 for the quarter ended June 30, 2022, an increase of 36.6 percent. Net income per diluted common share was $4.30 for the six months ended June 30, 2023, compared to $3.51 for the six months ended June 30, 2022, an increase of approximately 22.5 percent.

Excluding losses on the sale of investment securities, other real estate (ORE) expense and gains on the sale of fixed assets associated with the firm's sale-leaseback transaction for the three months ended June 30, 2023 and 2022, net income per diluted common share was $1.79 for the three months ended June 30, 2023, compared to $1.86 for the three months ended June 30, 2022, a decrease of 3.8 percent. Excluding losses on the sale of investment securities, other real estate (ORE) expense and gains on the sale of fixed assets associated with our sale-leaseback transaction for the six months ended June 30, 2023 and 2022, net income per diluted common share was $3.55 for the six months ended June 30, 2023, compared to $3.51 for the six months ended June 30, 2022, an increase of 1.1 percent.

"This proved to be another sound operating quarter especially given the results of several critical performance metrics such as asset quality, net interest income growth and tangible book value accretion," said M. Terry Turner, Pinnacle's president and chief executive officer. "Second quarter results continue to reflect our longstanding and ongoing ability to leverage our award-winning work environment and market-leading net promoter scores to take market share from our large national and regional competitors. The second quarter of 2023 also saw us increase our thrust and focus on gathering client funding, which is the 'raw material' that we need to support our outsized loan and earnings growth over time. Consequently, our relationship managers attracted client funding from across our footprint, which resulted in deposit growth of over $1.5 billion this quarter. Loan growth during the second quarter of 2023 was $855 million, or 11.3% linked-quarter annualized. This amount is consistent with the outlook we provided in connection with our first quarter results and is reflective of our deliberate efforts to moderate loan growth by constraining certain asset classes and elevating loan pricing.

"We also added 20 revenue producers during the quarter. Despite all the uncertainty plaguing the industry, we continue to invest in our proven relationship banking model and believe, even during times such as these, that a consistent focus on attracting and retaining highly successful revenue producers and their clients will enable us to continue compounding earnings and accreting tangible book value more reliably than peers.

"Our second quarter diluted earnings per share includes the positive impact of $0.84 per diluted common share from a sale-leaseback transaction that was executed during the second quarter. The gain from the sale-leaseback transaction was partially offset by the realized net loss of approximately $0.10 per diluted common share from the sale of approximately $174.0 million in available-for-sale investment securities."

BALANCE SHEET GROWTH:

Total assets at June 30, 2023 were $46.9 billion, an increase of approximately $6.8 billion from June 30, 2022 and $1.8 billion from March 31, 2023, reflecting a year-over-year increase of 16.8 percent and a linked-quarter annualized increase of 15.6 percent, respectively. A further analysis of select balance sheet trends follows:

	Balances at				Linked- Quarter Annualized % Change		Balances at		Year-over-Year % Change
(dollars in thousands)	June 30, 2023		March 31, 2023				June 30, 2022
Loans	$	31,153,290	$	30,297,871	11.3	%	$	26,333,096	18.3	%
Less: PPP loans		4,650		6,382	NM			51,100	(90.9	)%
Loans excluding PPP loans		31,148,640		30,291,489	11.3	%		26,281,996	18.5	%
Securities and other interest-earning assets		10,625,301		10,080,769	21.6	%		9,342,543	13.7	%
Total interest-earning assets excluding PPP loans	$	41,773,941	$	40,372,258	13.9	%	$	35,624,539	17.3	%
Core deposits:
Noninterest-bearing deposits	$	8,436,799	$	9,018,439	(25.8	)%	$	11,058,198	(23.7	)%
Interest-bearing core deposits(1)		24,343,968		23,035,672	22.7	%		18,953,246	28.4	%
Noncore deposits and other funding(2)		7,731,082		6,865,003	50.5	%		4,496,117	72.0	%
Total funding	$	40,511,849	$	38,919,114	16.4	%	$	34,507,561	17.4	%

(1):	Interest-bearing core deposits are interest-bearing deposits, money market accounts, time deposits less than $250,000 including certain 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.

"End-of-period loans grew by $855.4 million over last quarter, and end-of-period deposits grew by $1.5 billion over the same period, reflecting an annualized linked-quarter growth rate of 11.3 percent and 17.1 percent, respectfully," Turner said. "We continued to experience a mix shift in our deposits as more deposits moved from noninterest-bearing accounts to interest-bearing accounts, albeit at a lesser pace than the previous quarters. We anticipate that the reduction in noninterest bearing balances will slow from the pace of previous quarters this year.

"Our cumulative deposit beta at June 30, 2023 increased to 48.0 percent, which is consistent with our expectations. We believe with more rate hikes in the forecast for 2023, our funding costs will increase just not at the same rate as the second quarter increase. Furthermore, we anticipate that the impact of our hiring and usual seasonal growth will enable us to continue to grow our deposits for the remainder of the year at levels that should support our current outlook of high single-digit percentage deposit growth for 2023 over 2022."

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

Pre-tax, pre-provision net revenues (PPNR) for the three and six months ended June 30, 2023 were $277.6 million and $467.6 million, respectively, inclusive of $85.7 million of gain on the sale of fixed assets as a result of the sale-leaseback transaction completed in the three months ended June 30, 2023, an increase of 43.1 percent and 32.0 percent, respectively, from the $194.0 million and $354.3 million, respectively, recognized in the three and six months ended June 30, 2022.

	Three months ended							Six months ended
	June 30,							June 30,
(dollars in thousands)		2023			2022	% change			2023			2022	% change
Revenues:
Net interest income	$	315,393		$	264,574	19.2	%	$	627,624		$	504,049	24.5	%
Noninterest income		173,839			125,502	38.5	%		263,368			228,998	15.0	%
Total revenues		489,232			390,076	25.4	%		890,992			733,047	21.5	%
Noninterest expense		211,641			196,038	8.0	%		423,368			378,699	11.8	%
Pre-tax, pre-provision net revenue (PPNR)		277,591			194,038	43.1	%		467,624			354,348	32.0	%
Adjustments:
Investment losses on sales of securities, net		9,961			—	NM			9,961			61	NM
Gain on the sale of fixed assets as a result of sale leaseback		(85,692	)		—	NM			(85,692	)		—	NM
ORE expense		58			86	(32.6	)%		157			191	(17.8	)%
Adjusted PPNR	$	201,918		$	194,124	4.0	%	$	392,050		$	354,600	10.6	%

• Revenue per fully diluted common share was $6.43 for the second quarter of 2023, compared to $5.28 for the first quarter of 2023 and $5.14 for the second quarter of 2022, a 25.1 percent year-over-year growth rate. Excluding net losses on sales of investment securities, gain on the sale of fixed assets as a result of the sale-leaseback transaction and ORE expense, revenue per fully diluted share for the second quarter of 2023 was $5.43.
• Net interest income for the quarter ended June 30, 2023 was $315.4 million, compared to $312.2 million for the first quarter of 2023 and $264.6 million for the second quarter of 2022, a year-over-year growth rate of 19.2 percent.
  • Revenues from PPP loans approximated $34,000 in the second quarter of 2023, compared to $20,000 in the first quarter of 2023 and $4.1 million in the second quarter of 2022. At June 30, 2023, remaining unamortized fees for PPP loans were approximately $192,000.
  • Included in net interest income for the second quarter of 2023 was $776,000 of discount accretion associated with fair value adjustments, compared to $852,000 of discount accretion recognized in the first quarter of 2023 and $1.6 million in the second quarter of 2022. There remains $1.9 million of purchase accounting discount accretion as of June 30, 2023.
• Noninterest income for the quarter ended June 30, 2023 was $173.8 million, compared to $89.5 million for the first quarter of 2023 and $125.5 million for the second quarter of 2022, a year-over-year increase of 38.5 percent.
  • Gain on the sale of fixed assets was $85.7 million for the quarter ended June 30, 2023, compared to $135,000 and $65,000, respectively, for the quarters ended March 31, 2023 and June 30, 2022. The quarter ended June 30, 2023 included a gain on the sale of fixed assets as a result of the sale-leaseback transaction completed in the second quarter of 2023 of $85.7 million.
  • Net losses on the sale of investment securities were $10.0 million for the quarter ended June 30, 2023, compared to no gains or losses for the quarters ended March 31, 2023 and June 30, 2022.
  • Wealth management revenues, which include investment, trust and insurance services, were $24.1 million for the second quarter of 2023, compared to $22.5 million for the first quarter of 2023 and $21.8 million for the second quarter of 2022, a year-over-year increase of 10.2 percent.
  • During the second quarter of 2023, mortgage loans sold resulted in a $1.6 million net gain, compared to a $2.1 million net gain in the first quarter of 2023 and a $2.2 million net gain in the second quarter of 2022.
  • Income from the firm's investment in BHG was $26.9 million for the second quarter 2023, compared to $19.1 million for the first quarter of 2023 and $49.5 million for the second quarter of 2022, a year-over-year decline of 45.6 percent.
    • Loan originations increased to $1.1 billion in the second quarter of 2023 compared to $1.0 billion in the first quarter of 2023 and $1.1 billion in the second quarter of 2022.
    • Loans sold to BHG's community bank partners were approximately $523 million in the second quarter of 2023 compared to approximately $704 million in the first quarter of 2023 and $658 million in the second quarter of 2022. BHG also sold $557 million in loans to private investors during the second quarter of 2022.
    • BHG increased its reserves for on-balance sheet loan losses to $196 million, or 5.99 percent of loans held for investment at June 30, 2023, compared to 5.19 percent at March 31, 2023. BHG also increased its accrual for losses attributable to loan substitutions and prepayments for loans previously sold through its community bank auction platform to $369 million, or 5.87 percent of the loans that have been previously sold and were unpaid, at June 30, 2023 compared to 5.81 percent at March 31, 2023.
• Noninterest expense for the quarter ended June 30, 2023 was $211.6 million, compared to $211.7 million in the first quarter of 2023 and $196.0 million in the second quarter of 2022, reflecting a year-over-year increase of 8.0 percent.
  • Salaries and employee benefits were $132.4 million in the second quarter of 2023, compared to $135.7 million in the first quarter of 2023 and $126.6 million in the second quarter of 2022, reflecting a year-over-year increase of 4.6 percent.
    • Costs related to the firm's cash and equity incentive plans were $23.2 million in the second quarter of 2023, compared to $22.5 million in the first quarter of 2023 and $31.1 million in the second quarter of 2022.
    • The reduction in salaries and employee benefits expense was primarily due to the year-over-year decrease in the costs related to the firm's annual cash and equity incentive plans. Offsetting this decrease in part was the impact of full-time equivalent associates increasing to 3,309.0 at June 30, 2023, from 3,074.0 at June 30, 2022, a year-over-year increase in headcount of 7.6 percent.
  • Noninterest expense categories, other than salaries and employee benefits, were $79.2 million in the second quarter of 2023, compared to $76.0 million in the first quarter of 2023 and $69.4 million in the second quarter of 2022, reflecting a year-over-year increase of 14.1 percent.

"Our sale-leaseback transaction resulted in an $85.7 million gain on the sale of fixed assets during the second quarter of 2023," said Harold R. Carpenter, Pinnacle's chief financial officer. "We have reviewed the potential for a sale-leaseback transaction on several occasions over the years. In the fourth quarter of last year, as rates were increasing, it became much more opportunistic. After much diligence, we elected to execute the transaction during the second quarter of 2023.

"As to revenues for the second quarter, our net interest income for the second quarter was up by $3.2 million from the first quarter. Our current outlook is that growth in net interest income for fiscal year 2023 over 2022 should approximate a low-teens percentage increase. Net growth in fee income in the second quarter of 2023 compared to the first quarter was largely attributable to the gain on sale of fixed assets recognized in connection with the sale-leaseback transaction, offset by $10.0 million in net losses from the sale of investment securities. The second quarter sale of investment securities provided us the opportunity to increase our net interest income as the proceeds of the sale are now achieving a higher yield and thus serve to minimize the financial impact of higher lease occupancy costs from the sale-leaseback transaction. BHG revenues also increased $7.8 million from the first to the second quarter of 2023.

"Expenses were essentially flat when comparing second quarter to first quarter of 2023. Salaries and employee benefits expense decreased on a linked-quarter basis, as employee benefits were seasonally lower in the second quarter of 2023 from the first quarter. Occupancy expense increased this quarter as a result of the sale-leaseback transaction. We anticipate a similar dollar increase in occupancy costs next quarter given the sale-leaseback transaction was consummated in multiple transactions that occurred throughout the second quarter and thus will be fully integrated into our results in the third quarter. We will continue to monitor our expense burden in light of our anticipated revenue growth and adjust incentives and/or reduce other expenses through either reduced hiring, deferral of anticipated projects or implementation of other cost-saving measures as required."

PROFITABILITY, LIQUIDITY AND SOUNDNESS:

	Three months ended							Six months ended
	June 30, 2023		March 31, 2023		June 30, 2022			June 30, 2023		June 30, 2022
Net interest margin	3.20	%	3.40	%	3.17	%		3.30	%	3.03	%
Efficiency ratio	43.26	%	52.70	%	50.26	%		47.52	%	51.66	%
Return on average assets	1.71	%	1.26	%	1.46	%		1.49	%	1.39	%
Return on average tangible common equity (TCE)	21.06	%	15.43	%	17.62	%		18.33	%	16.63	%

	As of
	June 30, 2023			March 31, 2023			June 30, 2022
Shareholders' equity to total assets		12.5	%		12.6	%		13.2	%
Average loan to deposit ratio		84.94	%		83.97	%		80.67	%
Uninsured/uncollateralized deposits to total deposits		28.31	%		33.23	%		41.38	%
Tangible common equity to tangible assets		8.3	%		8.3	%		8.4	%
Book value per common share	$	73.32		$	71.24		$	66.74
Tangible book value per common share	$	48.85		$	46.75		$	42.08
Annualized net loan charge-offs to avg. loans (1)		0.13	%		0.10	%		0.01	%
Nonperforming assets to total loans, ORE and other nonperforming assets (NPAs)		0.15	%		0.15	%		0.09	%
Classified asset ratio (Pinnacle Bank) (2)		3.30	%		2.70	%		2.90	%
Allowance for credit losses (ACL) to total loans		1.08	%		1.04	%		1.03	%

(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.

• Net interest margin was 3.20 percent for the second quarter of 2023, compared to 3.40 percent for the first quarter of 2023 and 3.17 percent for the second quarter of 2022.
• Provision for credit losses was $31.7 million in the second quarter of 2023, compared to $18.8 million in the first quarter of 2023 and $12.9 million in the second quarter of 2022. Net charge-offs were $9.8 million for the quarter ended June 30, 2023, compared to $7.3 million for the quarter ended March 31, 2023 and $877,000 for the quarter ended June 30, 2022. Annualized net charge-offs for the second quarter of 2023 were 0.13 percent.
• Nonperforming assets were $47.4 million at June 30, 2023, compared to $44.8 million at March 31, 2023 and $23.7 million at June 30, 2022, up 100.0 percent over the same quarter last year. The ratio of the allowance for credit losses to nonperforming loans at June 30, 2023 was 762.0 percent, compared to 848.5 percent at March 31, 2023 and 1,762.6 percent at June 30, 2022.
• Classified assets were $153.9 million at June 30, 2023, compared to $120.3 million at March 31, 2023 and $112.5 at June 30, 2022, up 36.8 percent over the same quarter last year.

"Our net interest margin declined on a linked-quarter basis by approximately 20 basis points," Carpenter said. "Increased deposit pricing and the continued reduction in our noninterest-bearing deposit account balances as a result of a shift in deposit mix were the primary contributors to our decreased net interest margin. Also contributing to the reduced net interest margin was an elevated level of on-balance sheet liquidity, which, as we noted last quarter, we acquired during mid-March given the heightened levels of uncertainty in the broader banking industry. The impact of this elevated liquidity should decrease over the remainder of 2023 as we seek to deploy some of this excess into both loan growth and the reduction of wholesale funding.

"We continue to experience reductions in our uninsured deposit base, as approximately $1.9 billion in deposits were added to a reciprocal deposit insurance funding network during the second quarter, contributing to a reduction in our uninsured/uncollateralized deposit base from approximately 33.2 percent at the end of the first quarter of 2023 to approximately 28.3 percent at the end of the second quarter of 2023.

"Our investment securities portfolio, including both the held-to-maturity and available-for-sale portfolios, continues to perform well for us though the value of these securities decreased by approximately $255.4 million in the second quarter from the first quarter, largely as a result of our decision to sell approximately $174.0 million in securities in the second quarter of 2023. Our tangible book value per share also increased to $48.85 at June 30, 2023 from $46.75 at March 31, 2023.

"Lastly, credit metrics have been largely consistent for an extended period of time, and we expect those metrics to remain consistent for the remainder of this year. We did record an increased provision this quarter in comparison to last quarter and, thus, increased the ratio of our allowance for credit losses to total loans to 1.08 percent."

BOARD OF DIRECTORS DECLARES DIVIDENDS

On July 18, 2023, Pinnacle Financial's Board of Directors approved a quarterly cash dividend of $0.22 per common share to be paid on Aug. 25, 2023 to common shareholders of record as of the close of business on Aug. 4, 2023. Additionally, the Board of Directors approved a quarterly cash dividend of approximately $3.8 million, or $16.88 per share (or $0.422 per depositary share), on Pinnacle Financial's 6.75 percent Series B Non-Cumulative Perpetual Preferred Stock payable on Sept. 1, 2023 to shareholders of record at the close of business on Aug. 17, 2023. The amount and timing of any future dividend payments to both preferred and common shareholders will be subject to the approval of Pinnacle's Board of Directors.

WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. CDT on July 19, 2023, to discuss second quarter 2023 results and other matters. To access the call for audio only, please call 1-877-209-7255. For the presentation and streaming audio, please access the webcast on the investor relations page of Pinnacle's website at www.pnfp.com.

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

Pinnacle Financial Partners provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners and individuals interested in a comprehensive relationship with their financial institution. The firm is the No. 1 bank in the Nashville-Murfreesboro-Franklin MSA according to 2022 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. Pinnacle was also listed in Fortune magazine as the second best company to work for in the U.S. for women. 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 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 $46.9 billion in assets as of June 30, 2023. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in 17 primarily urban markets and their surrounding communities.

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

Forward-Looking Statements

All statements, other than statements of historical fact, included in this press release, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "expect," "anticipate," "intend," "may," "should," "plan," "believe," "seek," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (i) deterioration in the financial condition of borrowers of Pinnacle Bank and its subsidiaries or BHG, including as a result of the negative impact of inflationary pressures on our and BHG's customers and their businesses, resulting in significant increases in loan losses and provisions for those losses and, in the case of BHG, substitutions; (ii) fluctuations or differences in interest rates on loans or deposits from those that Pinnacle Financial is modeling or anticipating, including as a result of Pinnacle Bank's inability to better match deposit rates with the changes in the short-term rate environment, or that affect the yield curve; (iii) the sale of investment securities in a loss position before their value recovers, including as a result of asset liability management strategies or in response to liquidity needs; (iv) adverse conditions in the national or local economies including in Pinnacle Financial's markets throughout Tennessee, North Carolina, South Carolina, Georgia, Alabama, Virginia and Kentucky, particularly in commercial and residential real estate markets; (v) the inability of Pinnacle Financial, or entities in which it has significant investments, like BHG, to maintain the long-term historical growth rate of its, or such entities', loan portfolio; (vi) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, including during times when Pinnacle Bank is seeking to limit the rates it pays on deposits or uncertainty exists in the financial services sector; (vii) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (viii) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (ix) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on Pinnacle Financial’s results, including as a result of the negative impact to net interest margin from rising deposit and other funding costs; (x) the results of regulatory examinations; (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; (xv) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or other intangible assets; (xvi) the ineffectiveness of Pinnacle Bank's hedging strategies, or the unexpected counterparty failure or hedge failure of the underlying hedges; (xvii) 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; (xviii) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xix) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies, 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; (xx) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xxi) 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; (xxii) 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; (xxiii) the risks associated with Pinnacle Bank being a minority investor in BHG, including the risk that the owners of a majority of the equity interests in BHG decide to sell the company or all or a portion of their ownership interests in BHG (triggering a similar sale by Pinnacle Bank); (xxiv) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxv) fluctuations in the valuations of Pinnacle Financial's equity investments and the ultimate success of such investments; (xxvi) the availability of and access to capital; (xxvii) adverse results (including costs, fines, reputational harm, inability to obtain necessary approvals and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions; and (xxviii) general competitive, economic, political and market conditions. Additional factors which could affect the forward looking statements can be found in Pinnacle Financial's Annual Report on Form 10-K for the year ended December 31, 2022, and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC and available on the SEC's website at http://www.sec.gov. Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this press release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Matters

This release contains certain non-GAAP financial measures, including, without limitation, total revenues, net income to common shareholders, earnings per diluted common share, revenue per diluted common share, PPNR, efficiency ratio, noninterest expense, noninterest income and the ratio of noninterest expense to average assets, excluding in certain instances the impact of expenses related to other real estate owned, gains or losses on sale of investment securities, gains associated with the sale-leaseback transaction completed in the second quarter of 2023 and other matters for the accounting periods presented. This release also includes non-GAAP financial measures which exclude the impact of loans originated and forgiven and repaid 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 2023 versus certain periods in 2022 and to internally prepared projections.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS – UNAUDITED
(dollars in thousands, except for share and per share data)	June 30, 2023				December 31, 2022				June 30, 2022
ASSETS
Cash and noninterest-bearing due from banks	$		447,216		$		268,649		$		265,507
Restricted cash			22,567				31,447				29,739
Interest-bearing due from banks			3,363,348				877,286				1,336,667
Cash and cash equivalents			3,833,131				1,177,382				1,631,913
Securities purchased with agreement to resell			507,235				513,276				1,328,876
Securities available-for-sale, at fair value			3,591,280				3,558,870				3,809,338
Securities held-to-maturity (fair value of $2.7 billion, $2.7 billion, and $2.5 billion, net of allowance for credit losses of $1.7 million, $1.6 million, and $1.2 million at June 30, 2023, Dec. 31, 2022, and June 30, 2022, respectively)			3,032,177				3,079,050				2,744,555
Consumer loans held-for-sale			85,981				42,237				67,467
Commercial loans held-for-sale			22,713				21,093				25,901
Loans			31,153,290				29,041,605				26,333,096
Less allowance for credit losses			(337,459	)			(300,665	)			(272,483	)
Loans, net			30,815,831				28,740,940				26,060,613
Premises and equipment, net			244,853				327,885				302,389
Equity method investment			461,596				443,185				403,191
Accrued interest receivable			164,854				161,182				116,038
Goodwill			1,846,973				1,846,973				1,846,466
Core deposits and other intangible assets			30,981				34,555				37,617
Other real estate owned			2,555				7,952				8,237
Other assets			2,235,822				2,015,441				1,738,691
Total assets	$		46,875,982		$		41,970,021		$		40,121,292
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$		8,436,799		$		9,812,744		$		11,058,198
Interest-bearing			10,433,361				7,884,605				6,617,324
Savings and money market accounts			13,645,849				13,774,534				12,492,329
Time			5,206,652				3,489,355				2,427,452
Total deposits			37,722,661				34,961,238				32,595,303
Securities sold under agreements to repurchase			163,774				194,910				199,585
Federal Home Loan Bank advances			2,200,917				464,436				1,289,059
Subordinated debt and other borrowings			424,497				424,055				423,614
Accrued interest payable			53,854				19,478				13,551
Other liabilities			466,520				386,512				284,941
Total liabilities			41,032,223				36,450,629				34,806,053
Preferred stock, no par value, 10.0 million shares authorized; 225,000 shares non-cumulative perpetual preferred stock, Series B, liquidation preference $225.0 million, issued and outstanding at June 30, 2023, Dec. 31, 2022, and June 30, 2022, respectively			217,126				217,126				217,126
Common stock, par value $1.00; 180.0 million shares authorized; 76.7 million, 76.5 million and 76.4 million shares issued and outstanding at June 30, 2023, Dec. 31, 2022, and June 30, 2022, respectively			76,740				76,454				76,385
Additional paid-in capital			3,087,967				3,074,867				3,056,228
Retained earnings			2,634,315				2,341,706				2,096,950
Accumulated other comprehensive loss, net of taxes			(172,389	)			(190,761	)			(131,450	)
Total shareholders' equity			5,843,759				5,519,392				5,315,239
Total liabilities and shareholders' equity	$		46,875,982		$		41,970,021		$		40,121,292
This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
(dollars in thousands, except for share and per share data)	Three months ended									Six months ended
	June 30, 2023			March 31, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Interest income:
Loans, including fees	$	478,896		$	431,902		$	252,182		$	910,798		$	479,229
Securities
Taxable		31,967			29,358			12,725			61,325			23,773
Tax-exempt		24,603			23,802			19,898			48,405			37,344
Federal funds sold and other		39,773			20,977			7,571			60,750			10,647
Total interest income		575,239			506,039			292,376			1,081,278			550,993
Interest expense:
Deposits		228,668			176,589			18,181			405,257			28,431
Securities sold under agreements to repurchase		783			595			82			1,378			138
FHLB advances and other borrowings		30,395			16,624			9,539			47,019			18,375
Total interest expense		259,846			193,808			27,802			453,654			46,944
Net interest income		315,393			312,231			264,574			627,624			504,049
Provision for credit losses		31,689			18,767			12,907			50,456			15,627
Net interest income after provision for credit losses		283,704			293,464			251,667			577,168			488,422
Noninterest income:
Service charges on deposit accounts		12,180			11,718			11,616			23,898			22,646
Investment services		14,174			11,595			13,205			25,769			23,896
Insurance sales commissions		3,252			4,464			2,554			7,716			6,590
Gains on mortgage loans sold, net		1,567			2,053			2,150			3,620			6,216
Investment losses on sales, net		(9,961	)		—			—			(9,961	)		(61	)
Trust fees		6,627			6,429			6,065			13,056			12,038
Income from equity method investment		26,924			19,079			49,465			46,003			83,120
Gain on sale of fixed assets		85,724			135			65			85,859			198
Other noninterest income		33,352			34,056			40,382			67,408			74,355
Total noninterest income		173,839			89,529			125,502			263,368			228,998
Noninterest expense:
Salaries and employee benefits		132,443			135,708			126,611			268,151			248,463
Equipment and occupancy		33,706			30,353			26,921			64,059			52,457
Other real estate, net		58			99			86			157			191
Marketing and other business development		5,664			5,942			4,759			11,606			8,536
Postage and supplies		2,863			2,819			2,320			5,682			4,691
Amortization of intangibles		1,780			1,794			2,051			3,574			3,922
Other noninterest expense		35,127			35,012			33,290			70,139			60,439
Total noninterest expense		211,641			211,727			196,038			423,368			378,699
Income before income taxes		245,902			171,266			181,131			417,168			338,721
Income tax expense		48,603			33,995			36,004			82,598			64,484
Net income		197,299			137,271			145,127			334,570			274,237
Preferred stock dividends		(3,798	)		(3,798	)		(3,798	)		(7,596	)		(7,596	)
Net income available to common shareholders	$	193,501		$	133,473		$	141,329		$	326,974		$	266,641
Per share information:
Basic net income per common share	$	2.55		$	1.76		$	1.87		$	4.30		$	3.52
Diluted net income per common share	$	2.54		$	1.76		$	1.86		$	4.30		$	3.51
Weighted average common shares outstanding:
Basic		76,030,081			75,921,282			75,751,296			75,975,982			75,703,407
Diluted		76,090,321			76,042,328			75,940,500			76,061,883			75,934,025
This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)
(dollars and shares in thousands)	Preferred Stock Amount			Common Stock					Additional Paid -in Capital			Retained Earnings			Accumulated Other Comp. Income (Loss), net			Total Shareholders' Equity
				Shares		Amounts
Balance at December 31, 2021	$	217,126		76,143		$	76,143		$	3,045,802		$	1,864,350		$	107,186		$	5,310,607
Exercise of employee common stock options & related tax benefits		—		14			14			309			—			—			323
Preferred dividends paid ($33.76 per share)		—		—			—			—			(7,596	)		—			(7,596	)
Common dividends paid ($0.44 per share)		—		—			—			—			(34,041	)					(34,041	)
Issuance of restricted common shares, net of forfeitures		—		166			166			(166	)		—			—			—
Restricted shares withheld for taxes & related tax benefits		—		(43	)		(43	)		(4,359	)		—			—			(4,402	)
Issuance of common stock pursuant to restricted stock unit (RSU) and performance stock unit (PSU) agreements, net of shares withheld for taxes & related tax benefits		—		105			105			(5,566	)		—			—			(5,461	)
Compensation expense for restricted shares & performance stock units		—		—			—			20,208			—			—			20,208
Net income		—		—			—			—			274,237			—			274,237
Other comprehensive loss		—		—			—			—			—			(238,636	)		(238,636	)
Balance at June 30, 2022	$	217,126		76,385		$	76,385		$	3,056,228		$	2,096,950		$	(131,450	)	$	5,315,239
Balance at December 31, 2022	$	217,126		76,454		$	76,454		$	3,074,867		$	2,341,706		$	(190,761	)	$	5,519,392
Exercise of employee common stock options & related tax benefits		—		40			40			931			—			—			971
Preferred dividends paid ($33.76 per share)		—		—			—			—			(7,596	)		—			(7,596	)
Common dividends paid ($0.44 per share)		—		—			—			—			(34,365	)		—			(34,365	)
Issuance of restricted common shares, net of forfeitures		—		200			200			(200	)		—			—			—
Restricted shares withheld for taxes & related tax benefits		—		(47	)		(47	)		(3,345	)		—			—			(3,392	)
Issuance of common stock pursuant to RSU and PSU agreements, net of shares withheld for taxes & related tax benefits		—		93			93			(3,738	)		—			—			(3,645	)
Compensation expense for restricted shares & performance stock units		—		—			—			19,452			—			—			19,452
Net income		—		—			—			—			334,570			—			334,570
Other comprehensive gain		—		—			—			—			—			18,372			18,372
Balance at June 30, 2023	$	217,126		76,740		$	76,740		$	3,087,967		$	2,634,315		$	(172,389	)	$	5,843,759

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands)	June			March		December		September		June		March
		2023		2023		2022		2022		2022		2022
Balance sheet data, at quarter end:
Commercial and industrial loans	$	10,979,261		10,716,945		10,233,395		9,738,271		9,244,708		8,213,204
Commercial real estate - owner occupied loans		3,845,359		3,686,796		3,587,257		3,426,271		3,243,018		3,124,275
Commercial real estate - investment loans		5,682,652		5,556,484		5,277,454		5,122,127		4,909,598		4,707,761
Commercial real estate - multifamily and other loans		1,488,236		1,331,249		1,265,165		1,042,854		951,998		718,822
Consumer real estate - mortgage loans		4,692,673		4,531,285		4,435,046		4,271,913		4,047,051		3,813,252
Construction and land development loans		3,904,774		3,909,024		3,679,498		3,548,970		3,386,866		3,277,029
Consumer and other loans		555,685		559,706		555,823		550,565		498,757		487,499
Paycheck protection program loans		4,650		6,382		7,967		10,723		51,100		157,180
Total loans		31,153,290		30,297,871		29,041,605		27,711,694		26,333,096		24,499,022
Allowance for credit losses		(337,459	)	(313,841	)	(300,665	)	(288,088	)	(272,483	)	(261,618	)
Securities		6,623,457		6,878,831		6,637,920		6,481,018		6,553,893		6,136,109
Total assets		46,875,982		45,119,587		41,970,021		41,000,118		40,121,292		39,400,378
Noninterest-bearing deposits		8,436,799		9,018,439		9,812,744		10,567,873		11,058,198		10,986,194
Total deposits		37,722,661		36,178,553		34,961,238		33,690,049		32,595,303		32,295,814
Securities sold under agreements to repurchase		163,774		149,777		194,910		190,554		199,585		219,530
FHLB advances		2,200,917		2,166,508		464,436		889,248		1,289,059		888,870
Subordinated debt and other borrowings		424,497		424,276		424,055		423,834		423,614		423,319
Total shareholders' equity		5,843,759		5,684,128		5,519,392		5,342,112		5,315,239		5,280,950
Balance sheet data, quarterly averages:
Total loans	$	30,882,205		29,633,640		28,402,197		27,021,031		25,397,389		23,848,533
Securities		6,722,247		6,765,126		6,537,262		6,542,026		6,446,774		6,143,664
Federal funds sold and other		3,350,705		2,100,757		1,828,588		2,600,978		2,837,679		4,799,946
Total earning assets		40,955,157		38,499,523		36,768,047		36,164,035		34,681,842		34,792,143
Total assets		45,411,961		42,983,854		41,324,251		40,464,649		38,780,786		38,637,221
Noninterest-bearing deposits		8,599,781		9,332,317		10,486,233		10,926,069		10,803,439		10,478,403
Total deposits		36,355,859		35,291,775		34,177,281		33,108,415		31,484,100		31,538,985
Securities sold under agreements to repurchase		162,429		219,082		199,610		215,646		216,846		179,869
FHLB advances		2,352,045		1,130,356		701,813		1,010,865		1,095,531		888,746
Subordinated debt and other borrowings		426,712		426,564		427,503		426,267		427,191		441,755
Total shareholders' equity		5,782,239		5,605,604		5,433,274		5,403,244		5,316,219		5,331,405
Statement of operations data, for the three months ended:
Interest income	$	575,239		506,039		451,178		371,764		292,376		258,617
Interest expense		259,846		193,808		131,718		65,980		27,802		19,142
Net interest income		315,393		312,231		319,460		305,784		264,574		239,475
Provision for credit losses		31,689		18,767		24,805		27,493		12,907		2,720
Net interest income after provision for credit losses		283,704		293,464		294,655		278,291		251,667		236,755
Noninterest income		173,839		89,529		82,321		104,805		125,502		103,496
Noninterest expense		211,641		211,727		202,047		199,253		196,038		182,661
Income before income taxes		245,902		171,266		174,929		183,843		181,131		157,590
Income tax expense		48,603		33,995		37,082		35,185		36,004		28,480
Net income		197,299		137,271		137,847		148,658		145,127		129,110
Preferred stock dividends		(3,798	)	(3,798	)	(3,798	)	(3,798	)	(3,798	)	(3,798	)
Net income available to common shareholders	$	193,501		133,473		134,049		144,860		141,329		125,312
Profitability and other ratios:
Return on avg. assets (1)		1.71	%	1.26	%	1.29	%	1.42	%	1.46	%	1.32	%
Return on avg. equity (1)		13.42	%	9.66	%	9.79	%	10.64	%	10.66	%	9.53	%
Return on avg. common equity (1)		13.95	%	10.05	%	10.20	%	11.08	%	11.12	%	9.94	%
Return on avg. tangible common equity (1)		21.06	%	15.43	%	15.95	%	17.40	%	17.62	%	15.63	%
Common stock dividend payout ratio (14)		11.04	%	12.07	%	12.26	%	12.34	%	12.63	%	12.94	%
Net interest margin (2)		3.20	%	3.40	%	3.60	%	3.47	%	3.17	%	2.89	%
Noninterest income to total revenue (3)		35.53	%	22.28	%	20.49	%	25.53	%	32.17	%	30.18	%
Noninterest income to avg. assets (1)		1.54	%	0.84	%	0.79	%	1.03	%	1.30	%	1.09	%
Noninterest exp. to avg. assets (1)		1.87	%	2.00	%	1.94	%	1.95	%	2.03	%	1.92	%
Efficiency ratio (4)		43.26	%	52.70	%	50.29	%	48.53	%	50.26	%	53.26	%
Avg. loans to avg. deposits		84.94	%	83.97	%	83.10	%	81.61	%	80.67	%	75.62	%
Securities to total assets		14.13	%	15.25	%	15.82	%	15.81	%	16.34	%	15.57	%
This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
(dollars in thousands)	Three months ended							Three months ended
	June 30, 2023							June 30, 2022
	Average Balances		Interest		Rates/ Yields			Average Balances		Interest		Rates/ Yields
Interest-earning assets
Loans (1) (2)	$	30,882,205	$	478,896	6.30	%		$	25,397,389	$	252,182	4.07	%
Securities
Taxable		3,394,507		31,967	3.78	%			3,420,950		12,725	1.49	%
Tax-exempt (2)		3,327,740		24,603	3.54	%			3,025,824		19,898	3.19	%
Interest-bearing due from banks		2,597,020		33,234	5.13	%			1,332,463		2,611	0.79	%
Resell agreements		509,694		3,374	2.65	%			1,326,790		3,844	1.16	%
Federal funds sold		—		—	—	%			—		—	—	%
Other		243,991		3,165	5.20	%			178,426		1,116	2.51	%
Total interest-earning assets		40,955,157	$	575,239	5.74	%			34,681,842	$	292,376	3.49	%
Nonearning assets
Intangible assets		1,879,108							1,882,546
Other nonearning assets		2,577,696							2,216,398
Total assets	$	45,411,961						$	38,780,786
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking		9,361,316		75,815	3.25	%			6,520,804		6,134	0.38	%
Savings and money market		13,684,536		110,024	3.22	%			12,084,911		9,071	0.30	%
Time		4,710,226		42,829	3.65	%			2,074,946		2,976	0.58	%
Total interest-bearing deposits		27,756,078		228,668	3.30	%			20,680,661		18,181	0.35	%
Securities sold under agreements to repurchase		162,429		783	1.93	%			216,846		82	0.15	%
Federal Home Loan Bank advances		2,352,045		24,603	4.20	%			1,095,531		5,231	1.92	%
Subordinated debt and other borrowings		426,712		5,792	5.44	%			427,191		4,308	4.04	%
Total interest-bearing liabilities		30,697,264		259,846	3.40	%			22,420,229		27,802	0.50	%
Noninterest-bearing deposits		8,599,781		—	—				10,803,439		—	—
Total deposits and interest-bearing liabilities		39,297,045	$	259,846	2.65	%			33,223,668	$	27,802	0.34	%
Other liabilities		332,677							240,899
Shareholders' equity		5,782,239							5,316,219
Total liabilities and shareholders' equity	$	45,411,961						$	38,780,786
Net interest income			$	315,393						$	264,574
Net interest spread (3)					2.35	%						2.99	%
Net interest margin (4)					3.20	%						3.17	%
(1) Average balances of nonperforming loans are included in the above amounts.
(2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $11.2 million of taxable equivalent income for the three months ended June 30, 2023 compared to $9.6 million for the three months ended June 30, 2022. The tax-exempt benefit has been reduced by the projected impact of tax-exempt income that will be disallowed pursuant to IRS Regulations as of and for the then current period presented.
(3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the three months ended June 30, 2023 would have been 3.09% compared to a net interest spread of 3.16% for the three months ended June 30, 2022.
(4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.
This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
(dollars in thousands)	Six months ended							Six months ended
	June 30, 2023							June 30, 2022
	Average Balances		Interest		Rates/ Yields			Average Balances		Interest		Rates/ Yields
Interest-earning assets
Loans (1) (2)	$	30,261,372	$	910,798	6.15	%		$	24,627,240	$	479,229	4.01	%
Securities
Taxable		3,451,410		61,325	3.58	%			3,381,538		23,773	1.42	%
Tax-exempt (2)		3,292,158		48,405	3.54	%			2,914,519		37,344	3.12	%
Interest-bearing due from banks		1,998,083		49,166	4.96	%			2,334,566		3,914	0.34	%
Resell agreements		511,169		6,703	2.64	%			1,304,392		5,058	0.78	%
Federal funds sold		—		—	—	%			—		—	—	%
Other		219,932		4,881	4.48	%			174,434		1,675	1.94	%
Total interest-earning assets		39,734,124	$	1,081,278	5.60	%			34,736,689	$	550,993	3.30	%
Nonearning assets
Intangible assets		1,879,994							1,873,190
Other nonearning assets		2,590,548							2,099,522
Total assets	$	44,204,666						$	38,709,401
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking		8,581,899		128,289	3.01	%			6,456,418		8,733	0.27	%
Savings and money market		14,029,351		207,543	2.98	%			12,334,678		14,195	0.23	%
Time		4,251,481		69,425	3.29	%			2,078,477		5,503	0.53	%
Total interest-bearing deposits		26,862,731		405,257	3.04	%			20,869,573		28,431	0.27	%
Securities sold under agreements to repurchase		190,599		1,378	1.46	%			198,459		138	0.14	%
Federal Home Loan Bank advances		1,744,575		35,574	4.11	%			992,710		9,705	1.97	%
Subordinated debt and other borrowings		426,638		11,445	5.41	%			434,433		8,670	4.02	%
Total interest-bearing liabilities		29,224,543		453,654	3.13	%			22,495,175		46,944	0.42	%
Noninterest-bearing deposits		8,964,026		—	—				10,641,819		—	—
Total deposits and interest-bearing liabilities		38,188,569	$	453,654	2.40	%			33,136,994	$	46,944	0.29	%
Other liabilities		321,637							248,637
Shareholders' equity		5,694,460							5,323,770
Total liabilities and shareholders' equity	$	44,204,666						$	38,709,401
Net interest income			$	627,624						$	504,049
Net interest spread (3)					2.47	%						2.88	%
Net interest margin (4)					3.30	%						3.03	%
(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 $22.1 million of taxable equivalent income for the six months ended June 30, 2023 compared to $18.1 million for the six months ended June 30, 2022. The tax-exempt benefit has been reduced by the projected impact of tax-exempt income that will be disallowed pursuant to IRS Regulations as of and for the then current period presented.
(3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the six months ended June 30, 2023 would have been 3.20% compared to a net interest spread of 3.02% for the six months ended June 30, 2022.
(4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.
This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands)	June			March		December		September		June		March
		2023		2023		2022		2022		2022		2022
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans	$	44,289		36,988		38,116		34,115		15,459		26,616
ORE and other nonperforming assets (NPAs)		3,105		7,802		7,952		7,787		8,237		8,437
Total nonperforming assets	$	47,394		44,790		46,068		41,902		23,696		35,053
Past due loans over 90 days and still accruing interest	$	5,257		5,284		4,406		6,757		3,840		1,605
Accruing purchase credit deteriorated loans	$	7,415		7,684		8,060		8,759		9,194		12,661
Net loan charge-offs	$	9,771		7,291		11,729		10,983		877		2,958
Allowance for credit losses to nonaccrual loans		762.0	%	848.5	%	788.8	%	844.5	%	1,762.6	%	982.9	%
As a percentage of total loans:
Past due accruing loans over 30 days		0.14	%	0.14	%	0.15	%	0.13	%	0.11	%	0.11	%
Potential problem loans		0.32	%	0.22	%	0.19	%	0.21	%	0.32	%	0.41	%
Allowance for credit losses		1.08	%	1.04	%	1.04	%	1.04	%	1.03	%	1.07	%
Nonperforming assets to total loans, ORE and other NPAs		0.15	%	0.15	%	0.16	%	0.15	%	0.09	%	0.14	%
Classified asset ratio (Pinnacle Bank) (6)		3.3	%	2.7	%	2.4	%	2.6	%	2.9	%	3.6	%
Annualized net loan charge-offs to avg. loans (5)		0.13	%	0.10	%	0.17	%	0.16	%	0.01	%	0.05	%
Interest rates and yields:
Loans		6.30	%	6.00	%	5.54	%	4.73	%	4.07	%	3.94	%
Securities		3.66	%	3.47	%	3.19	%	2.66	%	2.29	%	2.12	%
Total earning assets		5.74	%	5.45	%	5.02	%	4.20	%	3.49	%	3.11	%
Total deposits, including non-interest bearing		2.52	%	2.03	%	1.40	%	0.66	%	0.23	%	0.13	%
Securities sold under agreements to repurchase		1.93	%	1.10	%	0.94	%	0.34	%	0.15	%	0.13	%
FHLB advances		4.20	%	3.94	%	3.04	%	2.26	%	1.92	%	2.04	%
Subordinated debt and other borrowings		5.44	%	5.38	%	4.98	%	4.51	%	4.04	%	4.00	%
Total deposits and interest-bearing liabilities		2.65	%	2.12	%	1.47	%	0.75	%	0.34	%	0.23	%
Capital and other ratios (6):
Pinnacle Financial ratios:
Shareholders' equity to total assets		12.5	%	12.6	%	13.2	%	13.0	%	13.2	%	13.4	%
Common equity Tier one		10.2	%	9.9	%	10.0	%	10.0	%	10.2	%	10.5	%
Tier one risk-based		10.8	%	10.5	%	10.5	%	10.7	%	10.9	%	11.2	%
Total risk-based		12.7	%	12.4	%	12.4	%	12.6	%	12.9	%	13.3	%
Leverage		9.5	%	9.6	%	9.7	%	9.7	%	9.8	%	9.5	%
Tangible common equity to tangible assets		8.3	%	8.3	%	8.5	%	8.3	%	8.4	%	8.5	%
Pinnacle Bank ratios:
Common equity Tier one		11.1	%	10.8	%	10.9	%	11.1	%	11.0	%	11.4	%
Tier one risk-based		11.1	%	10.8	%	10.9	%	11.1	%	11.0	%	11.4	%
Total risk-based		11.9	%	11.6	%	11.6	%	11.8	%	11.7	%	12.1	%
Leverage		9.8	%	9.9	%	10.1	%	10.1	%	9.9	%	9.6	%
Construction and land development loans as a percentage of total capital (17)		84.5	%	88.5	%	85.9	%	85.4	%	87.4	%	87.4	%
Non-owner occupied commercial real estate and multi-family as a percentage of total capital (17)		256.7	%	261.1	%	249.6	%	244.0	%	250.2	%	243.7	%
This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands, except per share data)		June		March		December		September		June		March
		2023		2023		2022		2022		2022		2022
Per share data:
Earnings per common share – basic	$	2.55		1.76		1.77		1.91		1.87		1.66
Earnings per common share - basic, excluding non-GAAP adjustments	$	1.80		1.76		1.77		1.91		1.87		1.66
Earnings per common share – diluted	$	2.54		1.76		1.76		1.91		1.86		1.65
Earnings per common share - diluted, excluding non-GAAP adjustments	$	1.79		1.76		1.76		1.91		1.86		1.65
Common dividends per share	$	0.22		0.22		0.22		0.22		0.22		0.22
Book value per common share at quarter end (7)	$	73.32		71.24		69.35		67.07		66.74		66.30
Tangible book value per common share at quarter end (7)	$	48.85		46.75		44.74		42.44		42.08		41.65
Revenue per diluted common share	$	6.43		5.28		5.27		5.40		5.14		4.52
Revenue per diluted common share, excluding non-GAAP adjustments	$	5.43		5.28		5.27		5.40		5.14		4.52
Investor information:
Closing sales price of common stock on last trading day of quarter	$	56.65		55.16		73.40		81.10		72.31		92.08
High closing sales price of common stock during quarter	$	57.93		82.79		87.81		87.66		91.42		110.41
Low closing sales price of common stock during quarter	$	46.17		52.51		70.74		68.68		68.56		90.46
Closing sales price of depositary shares on last trading day of quarter	$	23.75		24.15		25.35		25.33		25.19		26.72
High closing sales price of depositary shares during quarter	$	24.90		25.71		25.60		26.23		26.44		28.53
Low closing sales price of depositary shares during quarter	$	19.95		20.77		23.11		24.76		24.75		25.63
Other information:
Residential mortgage loan sales:
Gross loans sold	$	192,948		120,146		134,514		181,139		239,736		270,793
Gross fees (8)	$	4,133		2,795		3,149		3,189		6,523		5,700
Gross fees as a percentage of loans originated		2.14	%	2.33	%	2.34	%	1.76	%	2.72	%	2.11	%
Net gain (loss) on residential mortgage loans sold	$	1,567		2,053		(65	)	1,117		2,150		4,066
Investment gains (losses) on sales of securities, net (13)	$	(9,961	)	—		—		217		—		(61	)
Brokerage account assets, at quarter end (9)	$	9,007,230		8,634,339		8,049,125		7,220,405		6,761,480		7,158,939
Trust account managed assets, at quarter end	$	5,084,592		4,855,951		4,560,752		4,162,639		4,207,406		4,499,911
Core deposits (10)	$	32,780,767		32,054,111		31,301,077		30,748,817		30,011,444		30,398,683
Core deposits to total funding (10)		80.9	%	82.4	%	86.8	%	87.4	%	87.0	%	89.9	%
Risk-weighted assets	$	38,853,588		38,117,659		36,216,901		35,281,315		33,366,074		31,170,258
Number of offices		127		126		123		120		119		119
Total core deposits per office	$	258,116		254,398		254,480		256,240		252,197		255,451
Total assets per full-time equivalent employee	$	14,166		13,750		12,948		12,875		13,052		13,186
Annualized revenues per full-time equivalent employee	$	593.0		496.5		491.8		511.5		509.0		465.5
Annualized expenses per full-time equivalent employee	$	256.5		261.7		247.3		248.2		255.8		247.9
Number of employees (full-time equivalent)		3,309.0		3,281.5		3,241.5		3,184.5		3,074.0		2,988.0
Associate retention rate (11)		94.1	%	93.8	%	93.8	%	93.6	%	93.3	%	93.1	%
This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
	Three months ended								Six months ended
(dollars in thousands, except per share data)	June			March		June			June		June
		2023		2023		2022			2023		2022
Net interest income	$	315,393		312,231		264,574			627,624		504,049
Noninterest income		173,839		89,529		125,502			263,368		228,998
Total revenues		489,232		401,760		390,076			890,992		733,047
Less: Investment losses on sales of securities, net		9,961		—		—			9,961		61
Gain on sale of fixed assets as a result of sale-leaseback transaction		(85,692	)	—		—			(85,692	)	—
Total revenues excluding the impact of adjustments noted above	$	413,501		401,760		390,076			815,261		733,108
Noninterest expense	$	211,641		211,727		196,038			423,368		378,699
Less: ORE expense		58		99		86			157		191
Noninterest expense excluding the impact of adjustments noted above	$	211,583		211,628		195,952			423,211		378,508
Pre-tax income	$	245,902		171,266		181,131			417,168		338,721
Provision for credit losses		31,689		18,767		12,907			50,456		15,627
Pre-tax pre-provision net revenue		277,591		190,033		194,038			467,624		354,348
Less: Adjustments noted above		(75,673	)	99		86			(75,574	)	252
Adjusted pre-tax pre-provision net revenue (12)	$	201,918		190,132		194,124			392,050		354,600
Noninterest income	$	173,839		89,529		125,502			263,368		228,998
Less: Adjustments noted above		(75,731	)	—		—			(75,731	)	61
Noninterest income excluding the impact of adjustments noted above	$	98,108		89,529		125,502			187,637		229,059
Efficiency ratio (4)		43.26	%	52.70	%	50.26	%		47.52	%	51.66	%
Adjustments noted above		7.91	%	(0.02	)%	(0.03	)%		4.39	%	(0.03	)%
Efficiency ratio excluding adjustments noted above (4)		51.17	%	52.68	%	50.23	%		51.91	%	51.63	%
Total average assets	$	45,411,961		42,983,854		38,780,786			44,204,666		38,709,401
Noninterest income to average assets (1)		1.54	%	0.84	%	1.30	%		1.20	%	1.19	%
Less: Adjustments noted above		(0.67	)%	—	%	—	%		(0.34	)%	—	%
Noninterest income (excluding adjustments noted above) to average assets (1)		0.87	%	0.84	%	1.30	%		0.86	%	1.19	%
Noninterest expense to average assets (1)		1.87	%	2.00	%	2.03	%		1.93	%	1.97	%
Adjustments as noted above		—	%	—	%	—	%		—	%	—	%
Noninterest expense (excluding adjustments noted above) to average assets (1)		1.87	%	2.00	%	2.03	%		1.93	%	1.97	%
This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
	Three months ended
(dollars in thousands, except per share data)	June			March		December		September		June		March
		2023		2023		2022		2022		2022		2022
Net income available to common shareholders	$	193,501		133,473		134,049		144,860		141,329		125,312
Investment (gains) losses on sales of securities, net		9,961		—		—		(217	)	—		61
Gain on sale of fixed assets as a result of sale-leaseback transaction		(85,692	)	—		—		—		—		—
ORE expense (benefit)		58		99		179		(90	)	86		105
Tax effect on adjustments noted above (16)		18,918		(25	)	(47	)	80		(22	)	(43	)
Net income available to common shareholders excluding adjustments noted above	$	136,746		133,547		134,181		144,633		141,393		125,435
Basic earnings per common share	$	2.55		1.76		1.77		1.91		1.87		1.66
Adjustment due to investment (gains) losses on sales of securities, net		0.13		—		—		—		—		—
Adjustment due to gain on sale of fixed assets as a result of sale-leaseback transaction		(1.13	)	—		—		—		—		—
Adjustment due to ORE expense (benefit)		—		—		—		—		—		—
Adjustment due to tax effect on adjustments noted above (16)		0.25		—		—		—		—		—
Basic earnings per common share excluding adjustments noted above	$	1.80		1.76		1.77		1.91		1.87		1.66
Diluted earnings per common share	$	2.54		1.76		1.76		1.91		1.86		1.65
Adjustment due to investment (gains) losses on sales of securities, net		0.13		—		—		—		—		—
Adjustment due to gain on sale of fixed assets as a result of sale-leaseback transaction		(1.13	)	—		—		—		—		—
Adjustment due to ORE expense (benefit)		—		—		—		—		—		—
Adjustment due to tax effect on adjustments noted above (16)		0.25		—		—		—		—		—
Diluted earnings per common share excluding the adjustments noted above	$	1.79		1.76		1.76		1.91		1.86		1.65
Revenue per diluted common share	$	6.43		5.28		5.27		5.40		5.14		4.52
Adjustments due to revenue-impacting items as noted above		(1.00	)	—		—		—		—		—
Revenue per diluted common share excluding adjustments due to revenue-impacting items as noted above	$	5.43		5.28		5.27		5.40		5.14		4.52
Book value per common share at quarter end (7)	$	73.32		71.24		69.35		67.07		66.74		66.30
Adjustment due to goodwill, core deposit and other intangible assets		(24.47	)	(24.49	)	(24.61	)	(24.63	)	(24.66	)	(24.65	)
Tangible book value per common share at quarter end (7)	$	48.85		46.75		44.74		42.44		42.08		41.65
Equity method investment (15)
Fee income from BHG, net of amortization	$	26,924		19,079		21,005		41,341		49,465		33,655
Funding cost to support investment		5,995		5,093		4,586		3,891		1,998		666
Pre-tax impact of BHG		20,929		13,986		16,419		37,450		47,467		32,989
Income tax expense at statutory rates (16)		5,232		3,497		4,292		9,789		12,408		8,623
Earnings attributable to BHG	$	15,697		10,489		12,127		27,661		35,059		24,366
Basic earnings per common share attributable to BHG	$	0.21		0.14		0.16		0.37		0.46		0.32
Diluted earnings per common share attributable to BHG	$	0.21		0.14		0.16		0.36		0.46		0.32
This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
		Six months ended
(dollars in thousands, except per share data)		June 30,
			2023		2022
Net income available to common shareholders		$	326,974		266,641
Investment losses on sales of securities, net			9,961		61
Gain on sale of fixed assets as a result of sale-leaseback transaction			(85,692	)	—
ORE expense			157		191
Tax effect on adjustments noted above (16)			18,894		(66	)
Net income available to common shareholders excluding adjustments noted above		$	270,294		266,827
Basic earnings per common share		$	4.30		3.52
Adjustment due to investment losses on sales of securities, net			0.13		—
Adjustment due to gain on sale of fixed assets as a result of sale-leaseback transaction			(1.13	)	—
Adjustment due to ORE expense			—		—
Adjustment due to tax effect on adjustments noted above (16)			0.25		—
Basic earnings per common share excluding adjustments noted above		$	3.55		3.52
Diluted earnings per common share			4.30		3.51
Adjustment due to investment losses on sales of securities, net			0.13		—
Adjustment due to gain on sale of fixed assets as a result of sale-leaseback transaction			(1.13	)	—
Adjustment due to ORE expense			—		—
Adjustment due to tax effect on adjustments noted above (16)			0.25		—
Diluted earnings per common share excluding the adjustments noted above		$	3.55		3.51
Revenue per diluted common share		$	11.71		9.65
Adjustments due to revenue-impacting items as noted above			(0.99	)	—
Revenue per diluted common share excluding adjustments due to revenue-impacting items noted above		$	10.72		9.65
Equity method investment (15)
Fee income from BHG, net of amortization		$	46,003		83,120
Funding cost to support investment			11,088		2,664
Pre-tax impact of BHG			34,915		80,456
Income tax expense at statutory rates (16)			8,729		21,031
Earnings attributable to BHG		$	26,186		59,425
Basic earnings per common share attributable to BHG		$	0.34		0.78
Diluted earnings per common share attributable to BHG		$	0.34		0.78
This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
	Three months ended								Six months ended
(dollars in thousands, except per share data)	June			March		June			June			June
		2023		2023		2022				2023		2022
Return on average assets (1)		1.71	%	1.26	%	1.46	%			1.49	%	1.39	%
Adjustments as noted above		(0.50	)%	—	%	—	%			(0.26	)%	—	%
Return on average assets excluding adjustments noted above (1)		1.21	%	1.26	%	1.46	%			1.23	%	1.39	%
Tangible assets:
Total assets	$	46,875,982		45,119,587		40,121,292			$	46,875,982		40,121,292
Less: Goodwill		(1,846,973	)	(1,846,973	)	(1,846,466	)			(1,846,973	)	(1,846,466	)
Core deposit and other intangible assets		(30,981	)	(32,761	)	(37,617	)			(30,981	)	(37,617	)
Net tangible assets	$	44,998,028		43,239,853		38,237,209			$	44,998,028		38,237,209
Tangible common equity:
Total shareholders' equity	$	5,843,759		5,684,128		5,315,239			$	5,843,759		5,315,239
Less: Preferred shareholders' equity		(217,126	)	(217,126	)	(217,126	)			(217,126	)	(217,126	)
Total common shareholders' equity		5,626,633		5,467,002		5,098,113				5,626,633		5,098,113
Less: Goodwill		(1,846,973	)	(1,846,973	)	(1,846,466	)			(1,846,973	)	(1,846,466	)
Core deposit and other intangible assets		(30,981	)	(32,761	)	(37,617	)			(30,981	)	(37,617	)
Net tangible common equity	$	3,748,679		3,587,268		3,214,030			$	3,748,679		3,214,030
Ratio of tangible common equity to tangible assets		8.33	%	8.30	%	8.41	%			8.33	%	8.41	%
Average tangible assets:
Average assets	$	45,411,961		42,983,854		38,780,786			$	44,204,666		38,709,401
Less: Average goodwill		(1,846,973	)	(1,846,973	)	(1,851,137	)			(1,846,973	)	(1,840,902	)
Average core deposit and other intangible assets		(32,135	)	(33,917	)	(31,409	)			(33,021	)	(32,288	)
Net average tangible assets	$	43,532,853		41,102,964		36,898,240			$	42,324,672		36,836,211
Return on average assets (1)		1.71	%	1.26	%	1.46	%			1.49	%	1.39	%
Adjustment due to goodwill, core deposit and other intangible assets		0.07	%	0.06	%	0.08	%			0.07	%	0.07	%
Return on average tangible assets (1)		1.78	%	1.32	%	1.54	%			1.56	%	1.46	%
Adjustments as noted above		(0.52	)%	—	%	—	%			(0.27	)%	—	%
Return on average tangible assets excluding adjustments noted above (1)		1.26	%	1.32	%	1.54	%			1.29	%	1.46	%
Average tangible common equity:
Average shareholders' equity	$	5,782,239		5,605,604		5,316,219			$	5,694,460		5,323,770
Less: Average preferred equity		(217,126	)	(217,126	)	(217,126	)			(217,126	)	(217,126	)
Average common equity		5,565,113		5,388,478		5,099,093				5,477,334		5,106,644
Less: Average goodwill		(1,846,973	)	(1,846,973	)	(1,851,137	)			(1,846,973	)	(1,840,902	)
Average core deposit and other intangible assets		(32,135	)	(33,917	)	(31,409	)			(33,021	)	(32,288	)
Net average tangible common equity	$	3,686,005		3,507,588		3,216,547			$	3,597,340		3,233,454
Return on average equity (1)		13.42	%	9.66	%	10.66	%			11.58	%	10.10	%
Adjustment due to average preferred shareholders' equity		0.53	%	0.39	%	0.46	%			0.46	%	0.43	%
Return on average common equity (1)		13.95	%	10.05	%	11.12	%			12.04	%	10.53	%
Adjustment due to goodwill, core deposit and other intangible assets		7.11	%	5.38	%	6.50	%			6.29	%	6.10	%
Return on average tangible common equity (1)		21.06	%	15.43	%	17.62	%			18.33	%	16.63	%
Adjustments as noted above		(6.18	)%	0.01	%	0.01	%			(3.18	)%	0.01	%
Return on average tangible common equity excluding adjustments noted above (1)		14.88	%	15.44	%	17.63	%			15.15	%	16.64	%
This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED

1. Ratios are presented on an annualized basis.

2. Net interest margin is the result of net interest income on a tax equivalent basis divided by average interest earning assets.

3. Total revenue is equal to the sum of net interest income and noninterest income.

4. Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.

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

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

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

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

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

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

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

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

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

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

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

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

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

11. Associate retention rate is computed by dividing the number of associates employed at quarter end less the number of associates that have resigned in the last 12 months by the number of associates employed at quarter end. Associate retention rate does not include associates at acquired institutions displaced by merger.

12. Adjusted pre-tax, pre-provision net revenue excludes the impact of ORE expenses and income, investment gains and losses on sales of securities and gain on sale of fixed assets as a result of the sale-leaseback transaction.

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

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

15. Earnings from equity method investment includes the impact of the issuance of subordinated debt as well as the funding costs of the overall franchise. Income tax expense is calculated using statutory tax rates.

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

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

pnfp-earnings

View source version on businesswire.com: https://www.businesswire.com/news/home/20230718517772/en/

MEDIA CONTACT:

Joe Bass, 615-743-8219

FINANCIAL CONTACT:

Harold Carpenter, 615-744-3742

WEBSITE:

www.pnfp.com

Source: Pinnacle Financial Partners, Inc.

FAQ

What was the net income per diluted common share for Pinnacle Financial Partners in Q2 2023?

The net income per diluted common share for Q2 2023 was $2.54.

What was the growth rate of loans for Pinnacle Financial Partners in Q2 2023?

Loans grew by 11.3% on a linked-quarter annualized basis in Q2 2023.

What was the growth rate of deposits for Pinnacle Financial Partners in Q2 2023?

Deposits grew by 17.1% on a linked-quarter annualized basis in Q2 2023.

What was the increase in total assets for Pinnacle Financial Partners from June 2022 to June 2023?

Total assets increased by approximately $6.8 billion during that period.