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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 $1.23, ROAA OF 1.54 PERCENT AND ROTCE OF 18.14 PERCENT FOR 4Q 2018
Excluding gains and losses on investment securities transactions, diluted EPS was $1.25 for 4Q 2018 


NASHVILLE, TN, 
Jan. 15, 2019
- Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $1.23 for the quarter ended Dec. 31, 2018, compared to net income per diluted common share of $0.35 for the quarter ended Dec. 31, 2017, an increase of 251.4 percent. Net income per diluted common share was $4.64 for the year ended Dec. 31, 2018, compared to net income per diluted common share of $2.70 for the year ended Dec. 31, 2017, an increase of 71.9 percent.
Excluding gains and losses on the sale of investment securities in both 2018 and 2017, merger-related charges and the after-tax charges related to the revaluation of the firm's deferred tax assets in 2017, net income per diluted common share was $1.25 for the three months ended Dec. 31, 2018, compared to net income per diluted common share of $0.97 for the three months ended Dec. 31, 2017. Excluding those same items, net income per diluted common share was $4.74 for the year ended Dec. 31, 2018, compared to $3.57 for the year ended Dec. 31, 2017, an increase of 32.8 percent.
"Despite investor concerns regarding the banking industry's ability to sustain earnings and profitability, Pinnacle is reporting a year-over-year growth in adjusted earnings per share of approximately 33 percent in 2018," said M. Terry Turner, Pinnacle's president and chief executive officer.
"Importantly, the real power of our differentiated franchise is perhaps even more evident as we move into 2019 when market growth in loan and deposit volumes has slowed and growth is increasingly dependent upon the ability to take market share. In 2018, the FDIC reported that we now possess the largest share of FDIC insured deposits in the Nashville MSA. Greenwich Associates validates that not only do we have the No. 1 'lead bank' share among businesses with annual revenues from $1 to $500 million in Nashville, but that the trajectory of both our market share and our net promoter scores also are continuing to trend higher. This long-proven ability to take share based on a truly differentiated service model is now being demonstrated in every major market in the Southeast in which we operate."

GROWING THE CORE EARNINGS CAPACITY OF THE FIRM:
Loans at Dec. 31, 2018 were a record $17.7 billion, an increase of $2.1 billion from Dec. 31, 2017, reflecting year-over-year growth of 13.3 percent. Loans at Dec. 31, 2018 increased $243.5 million from Sept. 30, 2018.
Average loans were $17.6 billion for the three months ended Dec. 31, 2018, up $371.1 million from $17.3 billion for the three months ended Sept. 30, 2018, an annualized growth rate of 8.5 percent.
At Dec. 31, 2018, the remaining discount associated with fair value accounting adjustments on acquired loans was $95.7 million, compared to $110.0 million at Sept. 30, 2018.
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Deposits at Dec. 31, 2018 were a record $18.8 billion, an increase of $2.4 billion from Dec. 31, 2017, reflecting year-over-year growth of 14.5 percent. Deposits at Dec. 31, 2018 increased $441.0 million from Sept. 30, 2018.
Average deposits were $18.4 billion for the three months ended Dec. 31, 2018, up $255.2 million from the $18.1 billion for the three months ended Sept. 30, 2018, an annualized growth rate of 5.6 percent.
Core deposits were $16.5 billion at Dec. 31, 2018, compared to $16.1 billion at Sept. 30, 2018 and $14.8 billion at Dec. 31, 2017. The linked-quarter annualized growth rate of core deposits in the fourth quarter of 2018 was 10.2 percent.
Revenues for the quarter ended Dec. 31, 2018 were $247.5 million, a linked-quarter increase of $6.6 million or a growth rate of 10.8 percent from the $240.9 million recognized in the third quarter of 2018, and up $36.3 million from the fourth quarter of 2017 or a growth rate of 17.2.
Revenue per fully diluted share was $3.19 for the three months ended Dec. 31, 2018, compared to $3.11 for the third quarter of 2018 and $2.73 for the fourth quarter of 2017. 

"Our model of hiring experienced bankers that we believe will produce outsized loan, deposit and fee growth continues to work extremely well," Turner said. "We hired 107 high-profile revenue producers in 2018, a strong predictor of our continued future growth. We believe our recruiting strategies are creating even more opportunities for our firm to attract the best bankers in our markets.
"Going into 2018, we set an expectation that we intended to remix our loan portfolio, dialing back the percentage of commercial real estate loans and driving up the percentage of C&I loans to lessen our concentration in commercial real estate. All in, organic loan growth for 2018 amounted to 13.3 percent since Dec. 31, 2017. We experienced 20.0 percent loan growth in our primary loan growth segments, C&I and owner-occupied commercial real estate. Growth in these segments remained strong all year long, with the fourth quarter reporting an annualized growth rate of 11.9 percent. We experienced a slight net decrease in our commercial real estate-investment, multi-family and construction categories in the fourth quarter. For the year, loan growth in these categories amounted to only 7.6 percent. 
"We have long been recognized for our strong organic loan growth, but 2018 was a further testament to the ability of our business model to fund that loan growth with strong core deposit growth. Core deposits reflected strong growth during 2018 and in the fourth quarter, as core deposits increased 11.1 percent for the year and increased by 10.2 percent on a linked-quarter annualized basis in the fourth quarter."

FOCUSING ON PROFITABILITY:
Return on average assets was 1.54 percent for the fourth quarter of 2018, compared to 1.54 percent for the third quarter of 2018 and 0.48 percent for the fourth quarter last year. Fourth quarter 2018 return on average tangible assets amounted to 1.66 percent, compared to 1.67 percent for the third quarter of 2018 and 0.53 percent for the fourth quarter last year.
Excluding gains and losses from investment securities transactions and for 2017 merger-related charges and the impact of the revaluation of deferred tax assets resulting from tax reform, return on average assets was 1.56 percent for the fourth quarter of 2018, compared to 1.54 percent for the third quarter of 2018 and 1.36 percent for the fourth quarter of 2017. Likewise, excluding gains and losses from investment securities transactions and for 2017 merger-related charges and the impact of the revaluation of deferred tax assets resulting from tax reform, the firm’s return on average tangible assets was 1.69 percent for the fourth quarter of 2018, compared to 1.67 percent for the third quarter of 2018 and 1.48 for the fourth quarter of 2017.
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Return on average common equity for the fourth quarter of 2018 amounted to 9.60 percent, compared to 9.60 percent for the third quarter of 2018 and 2.87 percent for the fourth quarter last year. Fourth quarter 2018 return on average tangible common equity amounted to 18.14 percent, compared to 18.44 percent for the third quarter of 2018 and 5.76 percent for the fourth quarter last year.
Excluding gains and losses from investment securities transactions and for 2017 merger-related charges and the impact of the revaluation of deferred tax assets resulting from tax reform, return on average tangible common equity amounted to 18.46 percent for the fourth quarter of 2018, compared to 18.44 percent for the third quarter of 2018 and 16.11 percent for the fourth quarter of 2017.

"Our profitability metrics remain very strong and provide us ongoing leverage to hire more revenue producers and further invest in our future growth," said Harold R. Carpenter, Pinnacle's chief financial officer. "We are pleased with our 1.54 percent return on average assets and 18.14 percent return on tangible common equity for the fourth quarter. Additionally, since the merger with BNC Bancorp was completed in June 2017, our tangible book value per common share has increased by more than 20.8 percent, inclusive of the impact of more than $39.4 million in merger-related charges, $10.5 million in losses associated with investment securities restructurings, $31.5 million in after-tax losses associated with the revaluation of deferred tax assets resulting from the Tax Cuts and Jobs Act and $39.9 million in after tax losses associated with revaluation of our bond portfolio through our accumulated other comprehensive loss account.
"Key profitability and growth metrics like our ROAA, ROTCE, organic loan, core deposit and EPS growth rates would suggest that our decision to acquire BNC Bancorp was a sound one, that the BNC integration was successful, and that it places us in a very strong position as we enter 2019."

MAINTAINING A FORTRESS BALANCE SHEET:
Nonperforming assets increased to 0.58 percent of total loans and ORE at Dec. 31, 2018, compared to 0.55 percent at Sept. 30, 2018 and 0.55 percent at Dec. 31, 2017. Nonperforming assets were $103.2 million at Dec. 31, 2018, compared to $95.6 million at Sept. 30, 2018 and $85.5 million at Dec. 31, 2017.
The classified asset ratio at Dec. 31, 2018 was 12.4 percent compared to 13.7 percent at Sept. 30, 2018 and 12.9 percent at Dec. 31, 2017. Classified assets were $284.7 million at Dec. 31, 2018, compared to $304.1 million at Sept. 30, 2018 and $258.8 million at Dec. 31, 2017.
The allowance for loan losses represented 0.47 percent of total loans at Dec. 31, 2018, compared to 0.46 percent at Sept. 30, 2018 and 0.43 percent at Dec. 31, 2017
The ratio of the allowance for loan losses to nonperforming loans was 95.2 percent at Dec. 31, 2018, compared to 102.7 percent at Sept. 30, 2018 and 117.0 percent at Dec. 31, 2017. At Dec. 31, 2018, purchase credit impaired loans of $10.6 million, which were recorded at fair value upon acquisition, represented 12.1 percent of the firm's nonperforming loans.
Net charge-offs were $5.7 million for the quarter ended Dec. 31, 2018, compared to $4.4 million for the quarter ended Sept. 30, 2018 and $4.2 million for the quarter ended Dec. 31, 2017. Annualized net charge-offs as a percentage of average loans for the quarter ended Dec. 31, 2018 was 0.11 percent, compared to 0.10 percent for the quarter ended Sept. 30, 2018 and 0.13 percent percent for the fourth quarter of 2017.
Provision for loan losses was $9.3 million in the fourth quarter of 2018, compared to $8.7 million in the third quarter of 2018 and $6.3 million in the fourth quarter of 2017.

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"Overall, asset quality for our firm remains exceptional," Carpenter said. "Our commercial real estate exposure continues to decline in relation to total risk-based capital. The commercial real estate to total risk-based capital ratio decreased to 277.7 percent  at Dec. 31, 2018, while the ratio of construction loans to total risk-based capital also decreased to 85.2 percent at Dec. 31, 2018. We expect growth in commercial real estate and construction to remain soft for the first and second quarters of 2019, with anticipated increases in the latter half of 2019 based on projects we currently have committed."

GROWING REVENUES
Net interest income for the quarter ended Dec. 31, 2018 was $190.2 million, compared to $189.4 million for the third quarter of 2018 and $175.0 million for the fourth quarter of 2017. Net interest margin was 3.63 percent for the fourth quarter of 2018, compared to 3.65 percent for the third quarter of 2018 and 3.76 percent for the fourth quarter of 2017. 
Included in net interest income for the fourth quarter of 2018 was $13.2 million of discount accretion associated with fair value adjustments, compared to $17.1 million of discount accretion recognized in the third quarter of 2018 and $19.1 million in the fourth quarter of 2017.
Average earning assets included $105.8 million of fair value adjustments related to our acquisitions at Dec. 31, 2018 compared to $123.9 million at Sept. 30, 2018 and $160.7 million at Dec. 31, 2017.
Noninterest income for the quarter ended Dec. 31, 2018 was $57.3 million, compared to $51.5 million for the third quarter of 2018 and $36.2 million for the fourth quarter of 2017, up 58.2 percent over the fourth quarter of last year.
Wealth management revenues, which include investment, trust and insurance services, were $11.3 million for the quarter ended Dec. 31, 2018, compared to $10.5 million for the third quarter of 2018 and $9.3 million for the fourth quarter of 2017.
Income from the firm's investment in Bankers Healthcare Group (BHG) was $17.9 million for the quarter ended Dec. 31, 2018, compared to $14.2 million for the quarter ended Sept. 30, 2018 and $12.4 million for the quarter ended Dec. 31, 2017. Income from the firm's investment in BHG grew 44.1 percent for the quarter ended Dec. 31, 2018, compared to the quarter ended Dec. 31, 2017.
Other noninterest income increased by $4.1 million over the third quarter of 2018. Contributing to this increase were $1.5 million of increased fees related to the firm's participation in various lending programs, $1.3 million related to gains on loan swaps sold to the firm's clients and $640,000 in gains on the firm's other investments.

"Despite a $3.9 million reduction in discount accretion from fair value adjustments between the third and fourth quarters, we are reporting growth in net interest income and a significant increase in noninterest income for the fourth quarter of 2018 when compared to the third quarter," Carpenter said. "Although our reported net interest margin decreased to 3.63 percent from 3.65 percent, pricing of our core loans and deposits positively impacted our margins in the fourth quarter. BHG had a strong fourth quarter and finished 2018 with $51.2 million in fee revenues for our firm in 2018."

CREATING OPERATING LEVERAGE
Noninterest expense for the quarter ended Dec. 31, 2018 was $119.4 million, compared to $114.0 million in the third quarter of 2018 and $123.0 million in the fourth quarter of 2017, reflecting a year-over-year decrease of 2.9 percent.
Salaries and employee benefits were $74.7 million in the fourth quarter of 2018, compared to $69.1 million in the third quarter of 2018 and $63.3 million in the fourth quarter of last year, reflecting a year-over-year increase of 18.0 percent. The year-over-year increase is primarily attributable to legacy BNC associates participating in the 2018 cash incentive plan.
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Included in salaries and employee benefits are costs related to the firm’s annual cash incentive plan. Incentive costs for this plan amounted to $13.7 million in the fourth quarter of 2018, compared to $10.0 million in the third quarter of 2018 and $6.8 million in the fourth quarter of last year.
The efficiency ratio for the fourth quarter of 2018 increased to 48.25 percent, compared to 47.32 percent for the third quarter of 2018. The ratio of noninterest expenses to average assets increased to 1.92 percent for the fourth quarter of 2018 from 1.87 percent in the third quarter of 2018.
Excluding merger-related charges, of which there were none in the third and fourth quarters of 2018, gains and losses from investment securities transactions and other real estate owned (ORE) expense, the efficiency ratio was 47.55 percent for the fourth quarter of 2018, compared to 47.29 percent for the third quarter of 2018, and the ratio of noninterest expense to average assets was 1.91 percent for the fourth quarter of 2018, compared to 1.87 percent for the third quarter of 2018.
The effective tax rate for the fourth quarter of 2018 was 19.7 percent, compared to 20.7 percent for the third quarter of 2018 and 67.3 percent for the fourth quarter of 2017. The fourth quarter of 2017 included the revaluation of deferred tax assets as a result of the Tax Cuts and Jobs Act.  
Included in income tax expense for the three months and year ended Dec. 31, 2018 were excess tax benefits of $14,000 and $3.0 million, respectively, related to the application of FASB Accounting Standards Update (ASU) 2016-09, Stock Compensation Improvements to Employee Share-Based Payment Activity compared to $758,000 and $5.4 million, respectively, for the three months and year ended Dec. 31, 2017.
The firm estimates an effective tax rate of between 20.5 and 21.5 percent for 2019.

"We are very pleased with the operating leverage we have created for our firm," Carpenter said. "During the fourth quarter of 2018, we were able to increase our incentive accruals and have increased our cash incentive payout to $35.9 million as of Dec. 31, 2018, for fiscal 2018, an increase of $13.7 million from Sept. 30, 2018. At Pinnacle, annual cash incentives are directly linked to the firm's revenue growth, earnings per share growth and loan quality. Given our continuing loan quality, and because the momentum in revenue and earnings per share was so strong in the fourth quarter, we were able to fund the incentive accrual at a meaningfully elevated level in the fourth quarter versus prior quarters."

BOARD OF DIRECTORS DECLARES DIVIDEND

On Jan. 15, 2019, Pinnacle’s Board of Directors approved the quarterly cash dividend of $0.16 per common share to be paid on Feb. 22, 2019 to common shareholders of record as of the close of business on Feb. 1, 2019. The amount and timing of any future dividend payments to common shareholders will be subject to the discretion of Pinnacle’s Board of Directors.


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WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. (CST) on Jan. 16, 2019 to discuss fourth quarter 2018 results and other matters. To access the call for audio only, please call 1-877-602-7944. For the presentation and streaming audio, please access the webcast on the investor relations page of Pinnacle's website at www.pnfp.com.
For those unable to participate in the webcast, it will be archived on the investor relations page of Pinnacle's website at www.pnfp.com for 90 days following the presentation.
Pinnacle Financial Partners provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners and individuals interested in a comprehensive relationship with their financial institution. The firm is the No. 1 bank in the Nashville-Murfreesboro-Franklin MSA, according to 2018 deposit data from the FDIC. Pinnacle earned a place on FORTUNE’s 2017 and 2018 lists of the 100 Best Companies to Work For in the U.S., and American Banker recognized Pinnacle as one of America’s Best Banks to Work For six years in a row.
The firm began operations in a single location in downtown Nashville, TN in October 2000 and has since grown to approximately $25.0 billion in assets as of Dec. 31, 2018. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in 11 primarily urban markets in Tennessee, the Carolinas and Virginia.
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 resulting in significant increases in loan losses and provisions for those losses; (ii) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits; (iii) the inability of Pinnacle Financial, or entities in which it has significant investments, like BHG, to maintain the historical growth rate of its, or such entities', loan portfolio; (iv) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (v) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (vi) 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; (vii) greater than anticipated adverse conditions in the national or local economies including in Pinnacle Financial's markets throughout Tennessee, North Carolina, South Carolina and Virginia,  particularly in commercial and residential real estate markets; (viii) fluctuations or unanticipated changes in interest rates on loans or deposits or that affect the yield curve; (ix) the results of regulatory examinations; (x) a merger or acquisition; (xi) risks of expansion into new geographic or product markets; (xii) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including intangible assets; (xiii) 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; (xiv) further deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xv) 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 Financial's level of applicable commercial real estate loans were to exceed percentage levels of total capital in guidelines recommended by its regulators; (xvi) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xvii) the vulnerability of Pinnacle Bank's network and online banking portals, and the systems of parties with whom Pinnacle Financial contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xviii) the possibility of increased compliance and operational costs as a result of increased regulatory oversight, 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;  (xix) 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 if not prohibited from doing so by Pinnacle Financial or Pinnacle Bank; (xx) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxi) risks associated with the ongoing shutdown of the United States federal government, including adverse effects on the national or local economies and adverse effects resulting from the shutdown of the U.S. Small Business Administration's SBA loan program; (xxii) the availability of and access to capital; (xxiii) 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
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/or regulatory actions; and (xxiv) general competitive, economic, political and market conditions. Additional factors which could affect the forward looking statements can be found in Pinnacle Financial's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC's website at http://www.sec.gov. Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this 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 share, efficiency ratio and the ratio of noninterest expense to average assets, excluding in certain instances the impact of expenses related to other real estate owned, gains or losses on sale of investments, the revaluation of Pinnacle Financial’s deferred tax assets and other matters for the accounting periods presented. This release also includes non-GAAP financial measures which exclude expenses associated with Pinnacle Bank's merger with BNC. 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. 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 2018 versus certain periods in 2017 and to internally prepared projections.




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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS – UNAUDITED
(dollars in thousands)
 December 31, 2018September 30, 2018December 31, 2017
ASSETS
Cash and noninterest-bearing due from banks$202,924 $145,638 $176,553 
Interest-bearing due from banks516,920 394,129 496,911 
Federal funds sold and other1,848 11,313 106,132 
Cash and cash equivalents721,692 551,080 779,596 
Securities available-for-sale, at fair value3,083,686 3,004,582 2,515,283 
Securities held-to-maturity (fair value of $193.1 million, $192.5 million, and $20.8 million at Dec. 31, 2018, Sept. 30, 2018, and Dec. 31, 2017, respectively)194,282 194,997 20,762 
Consumer loans held-for-sale34,196 47,417 103,729 
Commercial loans held-for-sale15,954 11,402 25,456 
Loans17,707,549 17,464,009 15,633,116 
Less allowance for loan losses(83,575)(79,985)(67,240)
Loans, net17,623,974 17,384,024 15,565,876 
Premises and equipment, net265,560 268,387 266,014 
Equity method investment239,237 221,302 221,667 
Accrued interest receivable79,657 73,366 57,440 
Goodwill1,807,121 1,807,121 1,808,002 
Core deposits and other intangible assets46,161 48,737 56,710 
Other real estate owned15,165 17,467 27,831 
Other assets904,359 927,663 757,334 
Total assets$25,031,044 $24,557,545 $22,205,700 
LIABILITIES AND STOCKHOLDERS' EQUITY 
Deposits: 
Noninterest-bearing$4,309,067 $4,476,925 $4,381,386 
Interest-bearing3,464,001 3,195,657 2,987,291 
Savings and money market accounts7,607,796 7,262,968 6,548,964 
Time3,468,243 3,471,965 2,534,061 
Total deposits18,849,107 18,407,515 16,451,702 
Securities sold under agreements to repurchase104,741 130,217 135,262 
Federal Home Loan Bank advances1,443,589 1,520,603 1,319,909 
Subordinated debt and other borrowings485,130 465,487 465,505 
Accrued interest payable23,586 20,944 10,480 
Other liabilities158,951 115,738 114,890 
Total liabilities21,065,104 20,660,504 18,497,748 
Preferred stock, no par value; 10.0 million shares authorized;
no shares issued and outstanding
— — — 
Common stock, par value $1.00; 180.0 million shares authorized at Dec. 31, 2018 and Sept. 30, 2018 and 90.0 million shares authorized at Dec. 31, 2017; 77.5 million, 77.9 million shares and 77.7 million shares issued and outstanding at Dec. 31, 2018, Sept. 30, 2018 and Dec. 31, 2017, respectively77,484 77,867 77,740 
Additional paid-in capital3,107,431 3,123,323 3,115,304 
Retained earnings833,130 750,363 519,144 
Accumulated other comprehensive loss, net of taxes(52,105)(54,512)(4,236)
Total stockholders' equity3,965,940 3,897,041 3,707,952 
Total liabilities and stockholders' equity$25,031,044 $24,557,545 $22,205,700 
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 per share data)Three Months EndedYear Ended
 December 31, 2018September 30, 2018December 31, 2017December 31, 2018December 31, 2017
Interest income:
Loans, including fees$228,599 $221,901 $189,193 $850,472 $578,286 
Securities
Taxable13,013 12,209 12,295 48,192 39,060 
Tax-exempt10,286 10,074 5,178 35,995 13,712 
Federal funds sold and other4,197 3,926 1,705 12,058 5,080 
Total interest income256,095 248,110 208,371 946,717 636,138 
Interest expense:
Deposits50,123 44,172 21,367 151,043 59,584 
Securities sold under agreements to repurchase150 165 129 588 406 
FHLB advances and other borrowings15,607 14,353 11,858 58,744 32,842 
Total interest expense65,880 58,690 33,354 210,375 92,832 
Net interest income190,215 189,420 175,017 736,342 543,306 
Provision for loan losses9,319 8,725 6,281 34,377 23,664 
Net interest income after provision for loan losses180,896 180,695 168,736 701,965 519,642 
Noninterest income:
Service charges on deposit accounts6,617 6,404 6,078 24,906 20,034 
Investment services5,925 5,237 4,723 21,175 14,315 
Insurance sales commissions2,038 2,126 1,961 9,331 7,405 
Gains on mortgage loans sold, net3,141 3,902 3,839 14,564 18,625 
Investment gains and losses on sales, net(2,295)11 (8,265)(2,254)(8,265)
Trust fees3,375 3,087 2,645 13,143 8,664 
Income from equity method investment17,936 14,236 12,444 51,222 37,958 
Other noninterest income20,533 16,475 12,777 68,783 46,168 
Total noninterest income57,270 51,478 36,202 200,870 144,904 
Noninterest expense:
Salaries and employee benefits74,725 69,117 63,346 271,673 209,662 
Equipment and occupancy19,073 19,252 17,114 74,276 54,092 
Other real estate, net631 67 252 723 1,079 
Marketing and other business development3,628 3,293 2,093 11,712 8,321 
Postage and supplies1,831 1,654 1,662 7,815 5,736 
Amortization of intangibles2,576 2,616 3,071 10,549 8,816 
Merger-related expenses— — 19,103 8,259 31,843 
Other noninterest expense16,945 17,991 16,332 67,880 47,011 
Total noninterest expense119,409 113,990 122,973 452,887 366,560 
Income before income taxes118,757 118,183 81,965 449,948 297,986 
Income tax expense23,439 24,436 55,167 90,508 124,007 
Net income$95,318 $93,747 $26,798 $359,440 $173,979 
Per share information:
Basic net income per common share$1.24 $1.22 $0.35 $4.66 $2.73 
Diluted net income per common share$1.23 $1.21 $0.35 $4.64 $2.70 
Weighted average shares outstanding:
Basic77,096,522 77,145,023 76,785,573 77,111,372 63,760,578 
Diluted77,469,803 77,490,977 77,437,013 77,449,917 64,328,189 
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)DecemberSeptemberJuneMarchDecemberSeptember
201820182018201820172017
Balance sheet data, at quarter end:
Commercial and industrial loans$5,271,420 5,006,247 4,821,299 4,490,886 4,141,341 3,971,227 
Commercial real estate - owner occupied2,653,433 2,688,247 2,504,891 2,427,946 2,460,015 2,433,762 
Commercial real estate - investment3,855,643 3,818,055 3,822,182 3,714,854 3,564,048 3,398,381 
Commercial real estate - multifamily and other655,879 708,817 697,566 651,488 645,547 617,899 
Consumer real estate  - mortgage loans2,844,447 2,815,160 2,699,399 2,580,766 2,561,214 2,541,180 
Construction and land development loans2,072,455 2,059,009 2,133,646 2,095,875 1,908,288 1,939,809 
Consumer and other354,272 368,474 363,870 364,202 352,663 357,528 
Total loans17,707,549 17,464,009 17,042,853 16,326,017 15,633,116 15,259,786 
Allowance for loan losses(83,575)(79,985)(75,670)(70,204)(67,240)(65,159)
Securities3,277,968 3,199,579 2,975,469 2,981,301 2,536,045 2,901,029 
Total assets25,031,044 24,557,545 23,988,370 22,935,174 22,205,700 21,790,371 
Noninterest-bearing deposits4,309,067 4,476,925 4,361,414 4,274,213 4,381,386 4,099,086 
Total deposits18,849,107 18,407,515 17,857,418 16,502,909 16,451,702 15,789,585 
Securities sold under agreements to repurchase104,741 130,217 128,739 131,863 135,262 129,557 
FHLB advances1,443,589 1,520,603 1,581,867 1,976,881 1,319,909 1,623,947 
Subordinated debt and other borrowings485,130 465,487 465,433 465,550 465,505 465,461 
Total stockholders' equity3,965,940 3,897,041 3,826,677 3,749,303 3,707,952 3,673,349 
Balance sheet data, quarterly averages:
Total loans$17,630,281 17,259,139 16,729,734 15,957,466 15,520,255 15,016,642 
Securities3,148,638 3,075,633 2,970,267 2,829,604 2,850,322 2,741,493 
Federal funds sold and other645,644 647,728 442,401 335,093 439,167 376,769 
Total earning assets21,424,563 20,982,500 20,142,402 19,122,163 18,809,744 18,137,904 
Total assets24,616,733 24,125,051 23,236,945 22,204,599 21,933,500 21,211,459 
Noninterest-bearing deposits4,317,782 4,330,917 4,270,459 4,304,186 4,165,876 3,953,855 
Total deposits18,368,012 18,112,766 16,949,374 16,280,581 16,091,700 15,828,480 
Securities sold under agreements to repurchase119,247 146,864 123,447 129,969 134,983 160,726 
FHLB advances1,689,920 1,497,511 1,884,828 1,584,281 1,465,145 1,059,032 
Subordinated debt and other borrowings469,074 468,990 474,328 471,029 477,103 473,805 
Total stockholders' equity3,939,927 3,874,430 3,795,963 3,732,633 3,706,741 3,655,029 
Statement of operations data, for the three months ended:
Interest income$256,095 248,110 230,984 211,528 208,371 201,896 
Interest expense65,880 58,690 48,748 37,057 33,354 28,986 
Net interest income190,215 189,420 182,236 174,471 175,017 172,910 
Provision for loan losses9,319 8,725 9,402 6,931 6,281 6,920 
Net interest income after provision for loan losses180,896 180,695 172,834 167,540 168,736 165,990 
Noninterest income57,270 51,478 47,939 44,183 36,202 43,248 
Noninterest expense119,409 113,990 110,908 108,580 122,973 109,736 
Income before taxes118,757 118,183 109,865 103,143 81,965 99,502 
Income tax expense23,439 24,436 23,000 19,633 55,167 35,060 
Net income$95,318 93,747 86,865 83,510 26,798 64,442 
Profitability and other ratios:
Return on avg. assets (1)
1.54 %1.54 %1.50 %1.53 %0.48 %1.21 %
Return on avg. common equity (1)
9.60 %9.60 %9.18 %9.07 %2.87 %6.99 %
Return on avg. tangible common equity (1)
18.14 %18.44 %18.01 %18.12 %5.76 %14.25 %
Dividend payout ratio (16)
13.79 %14.89 %16.57 %18.36 %20.00 %17.34 %
Net interest margin (2)
3.63 %3.65 %3.69 %3.77 %3.76 %3.87 %
Noninterest income to total revenue (3)
23.14 %21.37 %20.83 %20.21 %17.27 %19.88 %
Noninterest income to avg. assets (1)
0.92 %0.85 %0.83 %0.81 %0.66 %0.80 %
Noninterest exp. to avg. assets (1)
1.92 %1.87 %1.91 %1.98 %2.22 %2.05 %
Efficiency ratio (4)
48.25 %47.32 %48.18 %49.66 %58.22 %50.77 %
Avg. loans to avg. deposits
95.98 %95.29 %98.70 %98.02 %96.45 %94.87 %
Securities to total assets
13.10%  13.03%  12.40%  13.00%  11.42%  13.31%  
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
December 31, 2018December 31, 2017
 Average BalancesInterestRates/ YieldsAverage BalancesInterestRates/ Yields
Interest-earning assets
Loans (1) (2)
$17,630,281 $228,599 5.22 %$15,520,255 $189,193 4.87 %
Securities
Taxable1,829,051 13,013 2.82 %2,113,407 12,295 2.31 %
Tax-exempt (2)
1,319,587 10,286 3.77 %736,915 5,178 3.74 %
Federal funds sold and other645,644 4,197 2.58 %439,167 1,705 1.54 %
Total interest-earning assets21,424,563 $256,095 4.85 %18,809,744 $208,371 4.46 %
Nonearning assets
Intangible assets1,854,831 1,861,739 
Other nonearning assets1,337,339 1,262,017 
Total assets$24,616,733 $21,933,500 
Interest-bearing liabilities
Interest-bearing deposits:
Interest bearing demand deposits$932,961 $3,291 1.40 %$668,680 $1,214 0.72 %
Interest checking2,296,450 6,139 1.06 %2,019,957 2,273 0.45 %
Savings and money market7,424,287 24,138 1.29 %6,679,876 11,669 0.69 %
Time3,396,532 16,555 1.93 %2,557,311 6,211 0.96 %
Total interest-bearing deposits14,050,230 50,123 1.42 %11,925,824 21,367 0.71 %
Securities sold under agreements to repurchase119,247 150 0.50 %134,983 129 0.38 %
Federal Home Loan Bank advances1,689,920 9,307 2.18 %1,465,145 6,052 1.64 %
Subordinated debt and other borrowings469,074 6,300 5.33 %477,103 5,806 4.83 %
Total interest-bearing liabilities16,328,471 65,880 1.60 %14,003,055 33,354 0.95 %
Noninterest-bearing deposits4,317,782 — — 4,165,876 — — 
Total deposits and interest-bearing liabilities20,646,253 $65,880 1.27 %18,168,931 $33,354 0.73 %
Other liabilities30,553 57,828 
Stockholders' equity 3,939,927 3,706,741 
Total liabilities and stockholders' equity$24,616,733 $21,933,500 
Net  interest  income 
$190,215 $175,017 
Net interest spread (3)
3.25 %3.52 %
Net interest margin (4)
3.63 %3.76 %
(1) Average balances of nonperforming loans are included in the above amounts.    
(2) Yields computed on tax-exempt instruments on a tax equivalent basis and include $5.8 million of taxable equivalent income for the quarter ended December 31, 2018 compared to $3.1 million for the quarter ended December 31, 2017. 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 quarter ended December 31, 2018 would have been 3.58% compared to a net interest spread of 3.73% for the quarter ended December 31, 2017.
(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
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
(dollars in thousands)Year endedYear ended
December 31, 2018December 31, 2017
 Average BalancesInterestRates/ YieldsAverage BalancesInterestRates/ Yields
Interest-earning assets
Loans (1) (2)
$16,899,738 $850,472 5.09 %$12,254,790 $578,286 4.79 %
Securities
Taxable1,804,958 48,192 2.67 %1,724,612 39,060 2.26 %
Tax-exempt (2)
1,202,143 35,995 3.58 %488,478 13,712 3.76 %
Federal funds sold and other518,923 12,058 2.32 %335,491 5,080 1.51 %
Total interest-earning assets20,425,762 $946,717 4.71 %14,803,371 $636,138 4.38 %
Nonearning assets
Intangible assets1,859,183 1,273,577 
Other nonearning assets1,269,083 939,269 
Total assets$23,554,028 $17,016,217 
Interest-bearing liabilities
Interest-bearing deposits:
Interest bearing demand deposits$835,929 $9,774 1.17 %$583,052 $3,926 0.67 %
Interest checking2,228,399 18,993 0.85 %1,745,298 7,335 0.42 %
Savings and money market6,994,938 73,431 1.05 %5,455,607 32,844 0.60 %
Time3,070,071 48,845 1.59 %1,765,089 15,479 0.88 %
Total interest-bearing deposits13,129,337 151,043 1.15 %9,549,046 59,584 0.62 %
Securities sold under agreements to repurchase129,899 588 0.45 %119,055 406 0.34 %
Federal Home Loan Bank advances1,663,968 34,174 2.05 %788,237 12,399 1.57 %
Subordinated debt and other borrowings470,189 24,570 5.23 %420,790 20,443 4.86 %
Total interest-bearing liabilities15,393,393 210,375 1.37 %10,877,128 92,832 0.85 %
Noninterest-bearing deposits4,305,942 — — 3,331,741 — — 
Total deposits and interest-bearing liabilities19,699,335 $210,375 1.07 %14,208,869 $92,832 0.65 %
Other liabilities18,281 30,218 
Stockholders' equity 3,836,412 2,777,130 
Total liabilities and stockholders' equity$23,554,028 $17,016,217 
Net  interest  income 
$736,342 $543,306 
Net interest spread (3)
3.35 %3.53 %
Net interest margin (4)
3.68 %3.76 %
(1) Average balances of nonperforming loans are included in the above amounts.
(2) Yields computed on tax-exempt instruments on a tax equivalent basis and include $16.2 million of taxable equivalent income for the year ended December 31, 2018 compared to $12.3 million for the year ended December 31, 2017. 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 year ended December 31, 2018 would have been 3.65% compared to a net interest spread of 3.73% for the year ended December 31, 2017.
(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.


13


PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands)DecemberSeptemberJuneMarchDecemberSeptember
201820182018201820172017
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans$87,834 77,868 70,887 70,202 57,455 53,414 
Other real estate (ORE) and
other nonperforming assets (NPAs)
15,393 17,731 20,229 24,533 28,028 24,682 
Total nonperforming assets$103,227 95,599 91,116 94,735 85,483 78,096 
Past due loans over 90 days and still accruing interest$1,558 1,773 1,572 1,131 4,139 3,010 
Accruing troubled debt restructurings (5)
$5,899 6,125 5,647 6,115 6,612 15,157 
Accruing purchase credit impaired loans$14,743 21,473 22,993 24,398 26,719 29,254 
Net loan charge-offs$5,729 4,410 3,936 3,967 4,200 3,705 
Allowance for loan losses to nonaccrual loans95.2 %102.7 %106.7 %100.0 %117.0 %122.0 %
As a percentage of total loans:
Past due accruing loans over 30 days0.34 %0.25 %0.23 %0.24 %0.38 %0.24 %
Potential problem loans (6)
1.00 %1.16 %1.00 %0.97 %1.05 %0.97 %
Allowance for loan losses0.47 %0.46 %0.44 %0.43 %0.43 %0.43 %
Nonperforming assets to total loans, ORE and other NPAs0.58 %0.55 %0.53 %0.58 %0.55 %0.51 %
Nonperforming assets to total assets0.41 %0.39 %0.38 %0.41 %0.38 %0.36 %
    Classified asset ratio (Pinnacle Bank) (8)
12.4 %13.7 %12.6 %12.6 %12.9 %12.7 %
Annualized net loan charge-offs to avg. loans (7)
0.11 %0.10 %0.10 %0.10 %0.13 %0.14 %
Wtd. avg. commercial loan internal risk ratings (6)
44.4 4.5 4.4 4.4 4.5 4.5 
Interest rates and yields:
Loans5.22 %5.15 %5.04 %4.91 %4.87 %4.91 %
Securities3.22 %3.11 %2.91 %2.87 %2.68 %2.64 %
Total earning assets4.85 %4.76 %4.66 %4.56 %4.46 %4.50 %
Total deposits, including non-interest bearing1.08 %0.97 %0.78 %0.60 %0.53 %0.48 %
Securities sold under agreements to repurchase0.50 %0.44 %0.47 %0.40 %0.38 %0.37 %
FHLB advances2.18 %2.16 %2.06 %1.79 %1.64 %1.48 %
Subordinated debt and other borrowings5.33 %5.29 %5.20 %5.11 %4.83 %4.84 %
Total deposits and interest-bearing liabilities1.27 %1.15 %1.01 %0.81 %0.73 %0.66 %
Capital and other ratios (8):
Pinnacle Financial ratios:
Stockholders' equity to total assets15.8 %15.9 %16.0 %16.3 %16.7 %16.9 %
Common equity Tier one9.6 %9.4 %9.3 %9.2 %9.2 %9.4 %
Tier one risk-based9.6 %9.4 %9.3 %9.2 %9.2 %9.4 %
Total risk-based12.2 %12.1 %12.0 %12.0 %12.0 %12.3 %
Leverage8.9 %8.8 %8.8 %8.8 %8.7 %8.9 %
Tangible common equity to tangible assets9.1 %9.0 %8.9 %9.0 %9.1 %9.1 %
Pinnacle Bank ratios:
Common equity Tier one10.5 %10.3 %10.2 %10.3 %10.3 %10.7 %
Tier one risk-based10.5 %10.3 %10.2 %10.3 %10.3 %10.7 %
Total risk-based11.5 %11.4 %11.2 %11.3 %11.4 %11.8 %
Leverage9.8 %9.6 %9.7 %9.8 %9.7 %10.1 %
Construction and land development loans
as a percentage of total capital (19)
85.2 %87.8 %94.6 %96.1 %89.4 %88.1 %
Non-owner occupied commercial real estate and
multi-family as a percentage of total capital (19)
277.7 %287.6 %304.3 %306.2 %297.1 %289.1 %
This information is preliminary and based on company data available at the time of the presentation.


14


PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands, except per share data)DecemberSeptemberJuneMarchDecemberSeptember
201820182018201820172017
Per share data:
Earnings  – basic$1.24 1.22 1.13 1.08 0.35 0.84 
Earnings - basic, excluding merger-related charges, gains and losses on sales of investment securities and revaluation of deferred tax assets $1.26 1.22 1.15 1.13 0.98 0.91 
Earnings  – diluted$1.23 1.21 1.12 1.08 0.35 0.83 
Earnings - diluted, excluding merger-related charges, gains and losses on sales of investment securities and revaluation of deferred tax assets $1.25 1.21 1.15 1.13 0.97 0.90 
Common dividends per share$0.16 0.14 0.14 0.14 0.14 0.14 
Book value per common share at quarter end (9)
$51.18 50.05 49.15 48.16 47.70 47.31 
Tangible book value per common share at quarter end (9)
$27.27 26.21 25.28 24.24 23.71 23.32 
Revenue per diluted share$3.19 3.11 2.97 2.83 2.73 2.80 
Revenue per diluted share, excluding investment (gains) losses on sale of securities, net$3.22 3.11 2.97 2.83 2.83 2.80 
Noninterest expense per diluted share$1.54 1.47 1.43 1.40 1.59 1.42 
Noninterest expense per diluted share, excluding the impact of other real estate expense and merger-related charges $1.53 1.47 1.38 1.34 1.34 1.30 
Investor information:
Closing sales price on last trading day of quarter$46.10 60.15 61.35 64.20 66.30 66.95 
High closing sales price during quarter$61.04 66.20 68.10 69.45 69.30 66.95 
Low closing sales price during quarter$44.03 60.05 61.35 60.20 63.85 58.50 
Other information:
Gains on residential mortgage loans sold:
Residential mortgage loan sales:
Gross loans sold236,861 278,073 264,934 237,667 289,149 299,763 
Gross fees (10)
6,184 7,756 7,134 6,036 7,364 9,050 
Gross fees as a percentage of loans originated2.61 %2.79 %2.69 %2.54 %2.55 %3.02 %
Net gain on residential mortgage loans sold3,141 3,902 3,777 3,744 3,839 5,963 
Investment gains (losses) on sales of securities, net (15)
(2,295)11 — 30 (8,265)— 
Brokerage account assets, at quarter end (11)
3,763,911 3,998,774 3,745,635 3,508,669 3,266,936 2,979,936 
Trust account managed assets, at quarter end2,055,861 2,074,027 1,920,226 1,844,871 1,837,233 1,880,488 
Core deposits (12)
16,489,173 16,076,859 15,400,142 14,750,211 14,838,208 14,236,205 
Core deposits to total funding (12)
79.0 %78.3 %76.9 %77.3 %80.8 %79.1 %
Risk-weighted assets21,137,263 20,705,547 20,151,827 19,286,101 18,812,653 18,164,765 
Number of offices 114 115 115 114 114 123 
Total core deposits per office144,642 139,799 133,914 129,388 130,160 115,742 
Total assets per full-time equivalent employee10,897 10,917 10,911 10,677 10,415 9,930 
Annualized revenues per full-time equivalent employee427.5 424.9 419.9 412.8 393.1 390.8 
Annualized expenses per full-time equivalent employee206.2 201.0 202.3 205.0 228.8 198.4 
Number of employees (full-time equivalent)2,297.0 2,249.5 2,198.5 2,148.0 2,132.0 2,194.5 
Associate retention rate (13)
92.3 %91.1 %89.6 %89.9 %93.5 %98.3 %
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
Year Ended
(dollars in thousands, except per share data)
December 31,
September 30,
December 31,
December 31,
December 31,
20182018201720182017
Net interest income190,215 189,420 175,017 736,342 543,306 
Noninterest income57,270 51,478 36,202 200,870 144,904 
Total revenues247,485 240,898 211,219 937,212 688,210 
Less: Investment (gains) losses on sales of securities, net2,295 (11)8,265 2,254 8,265 
Total revenues excluding the impact of investment
(gains) losses on sales of securities, net
249,780 240,887 219,484 939,466 696,475 
Noninterest expense119,409 113,990 122,973 452,887 366,560 
Less:   Other real estate (ORE) expense631 67 252 723 1,079 
Merger-related charges— — 19,103 8,259 31,843 
Noninterest expense excluding the impact of ORE expense and merger-related charges 118,778 113,923 103,618 443,905 333,638 
Adjusted pre-tax pre-provision income (14)
131,002 126,964 115,866 495,561 362,837 
Efficiency ratio (4)
48.25 %47.32 %58.22 %48.32 %53.26 %
Adjustment due to investment gains and losses, ORE expense and merger-related charges (0.70)%(0.03)%(11.01)%(1.07)%(5.36)%
Efficiency ratio (excluding investment gains and losses, ORE expense and merger-related charges)47.55 %47.29 %47.21 %47.25 %47.90 %
Total average assets