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Section 1: 8-K (8-K)

Document
0001115055FALSE00011150552019-10-152019-10-15

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

______________________


FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 15, 2019


PINNACLE FINANCIAL PARTNERS, INC.
(Exact name of registrant as specified in charter)
Tennessee000-3122562-1812853
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
 Identification No.)
150 Third Avenue South, Suite 900, Nashville, Tennessee 37201
(Address of principal executive offices) (Zip Code)


Registrant's telephone number, including area code:   (615) 744-3700

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Exchange Act:


Title of Each ClassTrading SymbolName of Exchange on which Registered
Common Stock par value $1.00PNFPNasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Item 2.02. Results of Operations and Financial Condition.

      This Current Report on Form 8-K is being furnished to disclose the press release issued by Pinnacle Financial Partners, Inc., a Tennessee corporation (the "Company"), on October 15, 2019. The press release, which is furnished as Exhibit 99.1 hereto pursuant to Item 2.02 of Form 8-K, announced the Company's results of operations for the three and nine months ended September 30, 2019.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document).





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PINNACLE FINANCIAL PARTNERS, INC.

 By:/s/Harold R. Carpenter
 Name:Harold R. Carpenter
 Title:Executive Vice President and
  Chief Financial Officer

Date: October 15, 2019


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Section 2: EX-99 (EX-99.1)

Document

400377449_image21.jpg
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 $1.44, ROAA OF 1.62% AND ROTCE OF 18.28% FOR 3Q 2019
Excluding non-GAAP adjustments, 3Q19 diluted EPS was $1.45, ROAA was 1.62% and ROTCE was 18.31%


NASHVILLE, TN, Oct. 15, 2019 - Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $1.44 for the quarter ended Sept. 30, 2019, compared to net income per diluted common share of $1.21 for the quarter ended Sept. 30, 2018, an increase of 19.0 percent. Net income per diluted common share was $3.97 for the nine months ended Sept. 30, 2019, compared to net income per diluted common share of $3.41 for the nine months ended Sept. 30, 2018, an increase of 16.4 percent.
Impacting year-to-date results for 2019 were adjustments during the second quarter related to $4.5 million in net losses on the sale of investment securities, a $1.5 million loss from the sale of the non-prime automobile portfolio, $2.4 million of ORE expense related to facilities and land acquired in the BNC acquisition and $3.2 million of non-cash impairment charges related to the proposed consolidation of five offices across the firm's footprint. Excluding these adjustments, as well as merger-related charges in 2018, ORE expense in each period and gains and losses on the sale of investment securities in each period, net income per diluted common share was $4.11 for the nine months ended Sept. 30, 2019, compared to net income per diluted common share of $3.49 for the nine months ended Sept. 30, 2018, a growth rate of 17.8 percent.
"Highlights for the third quarter include double-digit loan and deposit growth, strong hiring throughout our footprint and substantial fee growth, including continued outperformance from BHG," said M. Terry Turner, Pinnacle president and chief executive officer. "We are particularly pleased with our dramatic year-over-year fee growth as we have headed into what appears to be a volatile interest rate environment.
"We continue to produce top-quartile profitability and, more importantly, we continue our focus on earnings per share growth and tangible book value per share accretion, having produced 5-year compounded annual growth rates of 22.6 percent and 16.1 percent, respectively, through the third quarter of 2019. Book value per share has also experienced a 20.6 percent compounded annual growth rate over the same period."

GROWING THE CORE EARNINGS CAPACITY OF THE FIRM:
Loans at Sept. 30, 2019 were a record $19.3 billion, an increase of $1.9 billion from Sept. 30, 2018, reflecting year-over-year growth of 10.8 percent. Loans at Sept. 30, 2019 increased $531.3 million from June 30, 2019, reflecting a linked-quarter annualized growth rate of 11.3 percent.
Average loans were $19.2 billion for the three months ended Sept. 30, 2019, up $605.7 million from $18.6 billion for the three months ended June 30, 2019, a linked-quarter annualized growth rate of 13.0 percent.
At Sept. 30, 2019, the remaining discount associated with fair value accounting adjustments on acquired loans was $65.2 million, compared to $75.4 million at June 30, 2019.
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Deposits at Sept. 30, 2019 were $20.0 billion, an increase of $1.6 billion from Sept. 30, 2018, reflecting year-over-year growth of 8.7 percent. Deposits at Sept. 30, 2019 increased $551.3 million from June 30, 2019, reflecting a linked-quarter annualized growth rate of 11.3 percent.
Average deposits were $19.8 billion for the three months ended Sept. 30, 2019, compared to $18.9 billion for the three months ended June 30, 2019, a linked-quarter annualized growth rate of 19.4 percent.
Core deposits were $17.1 billion at Sept. 30, 2019, compared to $16.1 billion at Sept. 30, 2018 and $16.5 billion at June 30, 2019 a year-over-year growth rate of 6.4 percent and a linked-quarter annualized growth rate of 14.5 percent.
Revenues for the quarter ended Sept. 30, 2019 were $278.4 million, an increase of $18.8 million from the $259.6 million recognized in the second quarter of 2019, and up $37.5 million from the third quarter of 2018. This represents a year-over-year growth rate of 15.6 percent.
Revenue per fully diluted share was $3.64 for the three months ended Sept. 30, 2019, compared to $3.39 for the second quarter of 2019 and $3.11 for the third quarter of 2018.

"We have hired 67 high-profile revenue producers during the first nine months of 2019," Turner said. "It is great to be able to make such a substantial investment in hiring in order to grow the future earnings capacity of our firm while at the same time producing substantial growth in current earnings with enviable profitability metrics versus peers. Our ability to hire the best bankers in our markets contributed to the outstanding loan, deposit and fee growth we experienced in the third quarter.
"Additionally, we continue to invest in compatible businesses that have potential to enhance our growth and profitability. During the quarter, we acquired Advocate Capital, Inc. with approximately $155.4 million in loan balances. We intend to enhance Advocate's existing business model by offering a full suite of commercial banking products to their client base, while focusing on deposit gathering initially. We are excited about this acquisition and look forward to joining forces to grow our combined franchise."

FOCUSING ON PROFITABILITY:
Return on average assets was 1.62 percent for the third quarter of 2019, compared to 1.55 percent for the second quarter of 2019 and 1.54 percent for the third quarter last year. Third quarter 2019 return on average tangible assets amounted to 1.74 percent, compared to 1.67 percent for the second quarter of 2019 and 1.67 percent for the third quarter of 2018.
Excluding the adjustments described above for both 2019 and 2018, return on average assets was 1.62 percent for the third quarter of 2019, compared to 1.69 percent for the second quarter of 2019 and 1.54 percent for the third quarter of 2018. Likewise, excluding those same adjustments, the firm’s return on average tangible assets was 1.74 percent for the third quarter of 2019, compared to 1.82 percent for the second quarter of 2019 and 1.67 percent for the third quarter of 2018.
Return on average common equity for the third quarter of 2019 amounted to 10.28 percent, compared to 9.77 percent for the second quarter of 2019 and 9.60 percent for the third quarter of 2018. Third quarter 2019 return on average tangible common equity amounted to 18.28 percent, compared to 17.74 percent for the second quarter of 2019 and 18.44 percent for the third quarter of 2018.
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Excluding the adjustments described above for both 2019 and 2018, return on average tangible common equity amounted to 18.31 percent for the third quarter of 2019, compared to 19.28 percent for the second quarter of 2019 and 18.44 percent for the third quarter of 2018.

"Earlier in the year, we began discussing with our relationship managers various strategies to reduce our deposit rates should short-term interest rates decline and, thus far, we feel like we've been very successful in executing our strategies," said Harold R. Carpenter, Pinnacle's chief financial officer. "I am pleased to report that our end-of-period deposit rates decreased by 0.11 percent between June 30, 2019 and September 30, 2019 inclusive of our interest-bearing checking and money market categories, which decreased by 0.17 percent during the same time period. Given prospects for further rate decreases, we expect to have ongoing conversations with our depositors regarding the value of money. We believe, even though we are all in a difficult operating environment, that we are advantaged as we look to reduce our deposit rates further by the depth of our client relationships.
"BHG reported another remarkable quarter. Their business model has been continually refined and is operating at high levels of efficiency and producing extraordinary results. As BHG's management team mentioned in their recent analyst day in New York, we believe BHG will begin to reposition its balance sheet in the fourth quarter to rely less on gains on sale by opting to keep more loans on its balance sheet. We believe this will be an effective strategy for BHG over the longer term as its balance sheet should provide it with more consistent and predictable interest income than might otherwise be the case from a more volatile gain on sale revenue model."

MAINTAINING A FORTRESS BALANCE SHEET:
Net charge-offs were $4.9 million for the quarter ended Sept. 30, 2019, compared to $4.1 million for the quarter ended June 30, 2019 and $4.4 million for the quarter ended Sept. 30, 2018. Annualized net charge-offs as a percentage of average loans for the quarter ended Sept. 30, 2019 were 0.10 percent, compared to 0.09 percent for the quarter ended June 30, 2019 and 0.10 percent for the third quarter of 2018.
Nonperforming assets decreased to 0.53 percent of total loans and ORE at Sept. 30, 2019, compared to 0.55 percent at each of June 30, 2019 and Sept. 30, 2018. Nonperforming assets were $103.3 million at Sept. 30, 2019, compared to $102.7 million at June 30, 2019 and $95.6 million at Sept. 30, 2018.
The classified asset ratio at Sept. 30, 2019 was 13.5 percent, compared to 13.9 percent at June 30, 2019 and 13.7 percent at Sept. 30, 2018. Classified assets were $363.2 million at Sept. 30, 2019, compared to $337.8 million at June 30, 2019 and $304.1 million at Sept. 30, 2018.
The allowance for loan losses represented 0.48 percent of total loans at Sept. 30, 2019, compared to 0.48 percent at June 30, 2019 and 0.46 percent at Sept. 30, 2018. 
The ratio of the allowance for loan losses to nonperforming loans increased to 127.8 percent at Sept. 30, 2019, from 118.6 percent at June 30, 2019 and 102.7 percent at Sept. 30, 2018. At Sept. 30, 2019, purchased credit impaired loans of $6.6 million, which were recorded at fair value upon acquisition, represented 8.9 percent of the firm's nonperforming loans.
Provision for loan losses was $8.3 million in the third quarter of 2019, compared to $7.2 million in the second quarter of 2019 and $8.7 million in the third quarter of 2018.

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"Asset quality continues to be a highlight for our firm," Carpenter said. "Net charge-offs, nonperforming assets and classified assets remain low. We also saw improvement in the nonperforming asset and classified asset ratios this quarter when compared to last quarter."

GROWING REVENUES
Net interest income for the quarter ended Sept. 30, 2019 was $195.8 million, compared to $188.9 million for the second quarter of 2019 and $189.4 million for the third quarter of 2018, a year-over-year growth rate of 3.4 percent. Net interest margin was 3.43 percent for the third quarter of 2019, compared to 3.48 percent for the second quarter of 2019 and 3.65 percent for the third quarter of 2018.
Included in net interest income for the third quarter of 2019 was $11.1 million of discount accretion associated with fair value adjustments, compared to $8.9 million of similar discount accretion recognized in the second quarter of 2019 and $17.1 million in the third quarter of 2018.
Noninterest income for the quarter ended Sept. 30, 2019 was $82.6 million, compared to $70.7 million for the second quarter of 2019 and $51.5 million for the third quarter of 2018, a year-over-year growth rate of 60.5 percent.
Wealth management revenues, which include investment, trust and insurance services, were $12.1 million for the quarter ended Sept. 30, 2019, compared to $11.5 million for the second quarter of 2019 and $10.7 million for the third quarter of 2018, a year-over-year increase of 13.6 percent.
Income from the firm's investment in BHG was $32.2 million for the quarter ended Sept. 30, 2019, compared to $32.3 million for the quarter ended June 30, 2019 and $14.2 million for the quarter ended Sept. 30, 2018.
Other noninterest income was $20.2 million for the quarter ended Sept. 30, 2019, compared to $16.5 million for the quarter ended June 30, 2019 and $12.7 million for the quarter ended Sept. 30, 2018, a year-over-year increase of 59.5 percent. Contributing to the increase were increased credit card interchange fees, SBA loan fees and the firm's client interest rate swap programs.

"Our net interest margin decreased by 0.05 percent in the third quarter from the second quarter, primarily due to reduced yields on our securities portfolio as well as increased balance sheet liquidity," Carpenter said. "Our loan yields remained consistent during the third quarter aided by additional purchase accounting accretion income and higher yielding loans resulting from the addition of the Advocate Capital portfolio. Our funding costs for the third quarter amounted to 1.40 percent on an annualized basis, which was down 0.03 percent from the second quarter's annualized amount. Specifically, we are most encouraged with the trends in our deposit rates as we experienced a peak in those rates in July followed by two months of deposit rate decreases primarily due to the hard work of our relationship managers."

OTHER HIGHLIGHTS
The efficiency ratio for the third quarter of 2019 decreased on a linked-quarter basis to 47.75 percent, compared to 49.19 percent for the second quarter of 2019 and 47.32 percent in the third quarter of 2018. The ratio of noninterest expenses to average assets was 1.94 percent for the third quarter of 2019 compared to 1.98 percent in the second quarter of 2019 and 1.87 percent in the third quarter of 2018.
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Excluding the adjustments noted elsewhere in this release for both 2019 and 2018, the efficiency ratio was 47.58 percent for the third quarter of 2019, compared to 45.92 percent for the second quarter of 2019 and 47.29 percent for the third quarter of 2018. Excluding the above described impairment charge, ORE expense and merger-related charges, the ratio of noninterest expense to average assets was 1.93 percent for the third quarter of 2019, compared to 1.89 percent for the second quarter of 2019 and 1.87 percent for the second quarter of 2018.
Noninterest expense for the quarter ended Sept. 30, 2019 was $132.9 million, compared to $127.7 million in the second quarter of 2019 and $114.0 million in the third quarter of 2018, reflecting a year-over-year increase of 16.6 percent. Excluding ORE expenses and merger-related charges for the relevant periods as described above, noninterest expense increased 16.1 percent over the third quarter of 2018.
Salaries and employee benefits were $85.9 million in the third quarter of 2019, compared to $75.6 million in the second quarter of 2019 and $69.1 million in the third quarter of 2018, reflecting a year-over-year increase of 24.3 percent.
Included in salaries and employee benefits are costs related to the firm’s annual cash incentive plan. Incentive costs for this plan amounted to $18.5 million in the third quarter of 2019, compared to $11.0 million in the second quarter of 2019 and $10.0 million in the third quarter of last year.
The effective tax rate for the third quarter of 2019 was 19.5 percent, compared to 19.6 percent for the second quarter of 2019 and 20.7 percent for the third quarter of 2018.
During the third quarter of 2019, the firm acquired 199,032 shares of its common stock in open market transactions pursuant to its previously announced share repurchase program, at an average price of $55.57.
On Sept. 11, 2019, Pinnacle completed its public offering of $300.0 million aggregate principal amount of 4.125 percent fixed-to-floating rate subordinated notes due 2029.

"We are pleased with our operating metrics for the third quarter," Carpenter said. "In the second quarter, we incurred certain costs related to our branch consolidation efforts, including the write down of certain other assets to better position these assets for disposition. We anticipate the office closures to be finalized in the fourth quarter, while several of the other assets are under contract. Additionally, our performance in the third quarter allowed us to increase our 2019 expected incentive payout resulting in an increase of $7.5 million in third quarter incentive costs over the amount recorded in the second quarter. We anticipate that incentive costs for the fourth quarter of 2019 will be less than those recorded in the third quarter and more consistent with the amounts reported in the second quarter of 2019.

BOARD OF DIRECTORS DECLARES DIVIDEND AND NEW SHARE REPURCHASE AUTHORIZATION
On Oct. 15, 2019, Pinnacle's Board of Directors approved a quarterly cash dividend of $0.16 per common share to be paid on Nov. 29, 2019 to common shareholders of record as of the close of business on Nov. 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. The Board of Directors also approved a new share repurchase authorization for an additional $100 million to be available for the repurchase of the firm's common stock in open market transactions upon the completion of Pinnacle's currently authorized and previously disclosed repurchase program and through Dec. 31, 2020.







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WEBCAST AND CONFERENCE CALL INFORMATION
Pinnacle will host a webcast and conference call at 8:30 a.m. (CDT) on October 16, 2019 to discuss third quarter 2019 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 2019 deposit data from the FDIC. Pinnacle earned a spot on FORTUNE’s 2019 lists of the 100 Best Companies to Work For® in the U.S., its third consecutive appearance. American Banker recognized Pinnacle as one of America’s Best Banks to Work For seven 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 $27.5 billion in assets as of Sept. 30, 2019. 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 of Pinnacle Bank or BHG resulting in significant increases in loan losses and provisions for those losses or, in the case of BHG, substitutions; (ii) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, including during times when Pinnacle Bank is seeking to lower rates it pays on deposits; (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) 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 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 lower deposit rates with the speed and at the levels desired in connection with the declining short-term rate environment currently contemplated, or that affect the yield curve; (ix) the results of regulatory examinations; (x) Pinnacle Financial's ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions; (xi) difficulties and delays in integrating acquired businesses or fully realizing costs savings and other benefits from acquisitions; (xii) BHG's ability to profitably grow its business and successfully execute on its business plans; (xiii) risks of expansion into new geographic or product markets; (xiv) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or the intangible assets; (xv) reduced ability to attract additional financial advisors (or failure of such advisors to cause their clients to switch to Pinnacle Bank), to retain financial advisors (including as a result of the competitive environment for associates) or otherwise to attract customers from other financial institutions; (xvi) the ability of Pinnacle Financial to implement its branch consolidation strategy on the timelines, and at the costs, presently contemplated; (xvii) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xviii) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies, required capital maintenance levels or regulatory requests or directives, particularly if Pinnacle Financial's level of applicable commercial real estate loans were to exceed percentage levels of total capital in guidelines recommended by its regulators; (xix) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xx) the vulnerability of Pinnacle Bank's network and online banking portals, and the systems of parties with whom Pinnacle Financial contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xxi) the possibility of increased compliance and operational costs as a result of increased regulatory oversight (including by the Consumer Financial Protection Bureau), including oversight of companies in which Pinnacle Financial or Pinnacle Bank have significant investments, like BHG, and the development of additional banking products for Pinnacle Bank's corporate and consumer clients;  (xxii) the risks associated with Pinnacle Financial and Pinnacle Bank being a
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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; (xxiii) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxiv) risks associated with the possible shutdown of the United States federal government, including adverse effects on the national or local economies and adverse effects resulting from a shutdown of the U.S. Small Business Administration's SBA loan program; (xxv) the availability of and access to capital; (xxvi) 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 (xxvii) 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 investment securities, the charges associated with Pinnacle Financial's branch consolidation project, the sale of the remaining portion of Pinnacle Bank's non-prime automobile portfolio, 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 2019 versus certain periods in 2018 and to internally prepared projections.


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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS – UNAUDITED
(dollars in thousands)
 September 30, 2019December 31, 2018September 30, 2018
ASSETS
Cash and noninterest-bearing due from banks$197,660  $137,433  $131,134  
Restricted cash157,544  65,491  14,504  
Interest-bearing due from banks553,124  516,920  394,129  
Federal funds sold and other11,975  1,848  11,313  
Cash and cash equivalents920,303  721,692  551,080  
Securities available-for-sale, at fair value3,393,435  3,083,686  3,004,582  
Securities held-to-maturity (fair value of $202.8 million, $193.1 million, and $192.5 million at Sept. 30, 2019, Dec. 31, 2018, and Sept. 30, 2018, respectively)189,684  194,282  194,997  
Consumer loans held-for-sale73,042  34,196  47,417  
Commercial loans held-for-sale21,312  15,954  11,402  
Loans19,345,642  17,707,549  17,464,009  
Less allowance for loan losses(93,647) (83,575) (79,985) 
Loans, net19,251,995  17,623,974  17,384,024  
Premises and equipment, net274,983  265,560  268,387  
Equity method investment267,097  239,237  221,302  
Accrued interest receivable81,124  79,657  73,366  
Goodwill1,830,652  1,807,121  1,807,121  
Core deposits and other intangible assets39,349  46,161  48,737  
Other real estate owned30,049  15,165  17,467  
Other assets1,174,809  904,359  927,663  
Total assets$27,547,834  $25,031,044  $24,557,545  
LIABILITIES AND STOCKHOLDERS' EQUITY 
Deposits: 
Noninterest-bearing$4,702,155  $4,309,067  $4,476,925  
Interest-bearing3,372,028  3,464,001  3,195,657  
Savings and money market accounts7,625,872  7,607,796  7,262,968  
Time4,300,622  3,468,243  3,471,965  
Total deposits20,000,677  18,849,107  18,407,515  
Securities sold under agreements to repurchase95,402  104,741  130,217  
Federal Home Loan Bank advances2,052,548  1,443,589  1,520,603  
Subordinated debt and other borrowings750,488  485,130  465,487  
Accrued interest payable36,836  23,586  20,944  
Other liabilities317,253  158,951  115,738  
Total liabilities23,253,204  21,065,104  20,660,504  
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; 76.7 million, 77.5 million and 77.9 million shares issued and outstanding at Sept. 30, 2019, Dec. 31, 2018 and Sept. 30, 2018, respectively76,736  77,484  77,867  
Additional paid-in capital3,070,235  3,107,431  3,123,323  
Retained earnings1,100,517  833,130  750,363  
Accumulated other comprehensive income (loss), net of taxes47,142  (52,105) (54,512) 
Total stockholders' equity4,294,630  3,965,940  3,897,041  
Total liabilities and stockholders' equity$27,547,834  $25,031,044  $24,557,545  
This information is preliminary and based on company data available at the time of the presentation.

9



PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
(dollars in thousands, except for per share data)Three Months EndedNine Months Ended
 September 30, 2019June 30, 2019September 30, 2018September 30, 2019September 30, 2018
Interest income:
Loans, including fees$247,147  $237,653  $221,901  $714,179  $621,873  
Securities
Taxable10,655  12,243  12,209  36,438  35,179  
Tax-exempt13,313  12,556  10,074  37,541  25,709  
Federal funds sold and other4,634  3,399  3,926  11,325  7,861  
Total interest income275,749  265,851  248,110  799,483  690,622  
Interest expense:
Deposits62,531  58,988  44,172  175,736  100,920  
Securities sold under agreements to repurchase152  142  165  439  438  
FHLB advances and other borrowings17,260  17,803  14,353  51,338  43,137  
Total interest expense79,943  76,933  58,690  227,513  144,495  
Net interest income195,806  188,918  189,420  571,970  546,127  
Provision for loan losses8,260  7,195  8,725  22,639  25,058  
Net interest income after provision for loan losses187,546  181,723  180,695  549,331  521,069  
Noninterest income:
Service charges on deposit accounts10,193  8,940  9,972  27,675  26,333  
Investment services6,270  5,868  5,450  17,607  15,817  
Insurance sales commissions2,252  2,147  2,126  7,327  7,293  
Gains on mortgage loans sold, net7,402  6,011  3,902  18,291  11,423  
Investment gains (losses) on sales, net417  (4,466) 11  (6,009) 41  
Trust fees3,593  3,461  3,087  10,349  9,768  
Income from equity method investment32,248  32,261  14,236  77,799  33,286  
Other noninterest income20,244  16,460  12,694  51,325  39,639  
Total noninterest income82,619  70,682  51,478  204,364  143,600  
Noninterest expense:
Salaries and employee benefits85,919  75,620  69,117  231,915  196,948  
Equipment and occupancy20,348  23,844  19,252  63,523  55,203  
Other real estate, net655  2,523  67  3,424  92  
Marketing and other business development2,723  3,282  3,293  8,953  8,084  
Postage and supplies1,766  2,079  1,654  5,737  5,984  
Amortization of intangibles2,430  2,271  2,616  7,012  7,973  
Merger-related expenses—  —  —  —  8,259  
Other noninterest expense19,100  18,067  17,991  54,114  50,935  
Total noninterest expense132,941  127,686  113,990  374,678  333,478  
Income before income taxes137,224  124,719  118,183  379,017  331,191  
Income tax expense26,703  24,398  24,436  74,215  67,069  
Net income$110,521  $100,321  $93,747  $304,802  $264,122  
Per share information:
Basic net income per common share$1.45  $1.31  $1.22  $3.99  $3.42  
Diluted net income per common share$1.44  $1.31  $1.21  $3.97  $3.41  
Weighted average shares outstanding:
Basic76,301,010  76,343,608  77,145,023  76,480,757  77,116,377  
Diluted76,556,309  76,611,657  77,490,977  76,761,167  77,442,554  
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)SeptemberJuneMarchDecemberSeptemberJune
201920192019201820182018
Balance sheet data, at quarter end:
Commercial and industrial loans$5,891,038  5,795,107  5,419,520  5,271,420  5,006,247  4,821,299  
Commercial real estate - owner occupied2,595,837  2,624,160  2,617,541  2,653,433  2,688,247  2,504,891  
Commercial real estate - investment4,443,687  4,252,098  4,107,953  3,855,643  3,818,055  3,822,182  
Commercial real estate - multifamily and other669,721  709,135  693,652  655,879  708,817  697,566  
Consumer real estate  - mortgage loans3,025,502  2,949,755  2,887,628  2,844,447  2,815,160  2,699,399  
Construction and land development loans2,253,303  2,117,969  2,097,570  2,072,455  2,059,009  2,133,646  
Consumer and other466,554  366,094  351,042  354,272  368,474  363,870  
Total loans19,345,642  18,814,318  18,174,906  17,707,549  17,464,009  17,042,853  
Allowance for loan losses(93,647) (90,253) (87,194) (83,575) (79,985) (75,670) 
Securities3,583,119  3,447,834  3,444,049  3,277,968  3,199,579  2,975,469  
Total assets27,547,834  26,540,355  25,557,858  25,031,044  24,557,545  23,988,370  
Noninterest-bearing deposits4,702,155  4,493,419  4,317,787  4,309,067  4,476,925  4,361,414  
Total deposits20,000,677  19,449,383  18,480,461  18,849,107  18,407,515  17,857,418  
Securities sold under agreements to repurchase95,402  154,169  100,698  104,741  130,217  128,739  
FHLB advances2,052,548  1,960,062  2,121,075  1,443,589  1,520,603  1,581,867  
Subordinated debt and other borrowings750,488  464,144  484,703  485,130  465,487  465,433  
Total stockholders' equity4,294,630  4,176,361  4,055,939  3,965,940  3,897,041  3,826,677  
Balance sheet data, quarterly averages:
Total loans$19,216,835  18,611,164  17,938,480  17,630,281  17,259,139  16,729,734  
Securities3,507,363  3,412,475  3,302,676  3,148,638  3,075,633  2,970,267  
Federal funds sold and other802,326  530,556  469,909  645,644  647,728  442,401  
Total earning assets23,526,524  22,554,195  21,711,065  21,424,563  20,982,500  20,142,402  
Total assets27,134,163  25,915,971  25,049,954  24,616,733  24,125,051  23,236,945  
Noninterest-bearing deposits4,574,821  4,399,766  4,195,443  4,317,782  4,330,917  4,270,459  
Total deposits19,778,007  18,864,859  18,358,094  18,368,012  18,112,766  16,949,374  
Securities sold under agreements to repurchase134,197  117,261  109,306  119,247  146,864  123,447  
FHLB advances2,136,928  2,164,341  1,926,358  1,689,920  1,497,511  1,884,828  
Subordinated debt and other borrowings533,194  469,498  470,775  469,074  468,990  474,328  
Total stockholders' equity4,265,006  4,117,754  4,017,375  3,939,927  3,874,430  3,795,963  
Statement of operations data, for the three months ended:
Interest income$275,749  265,851  257,883  256,095  248,110  230,984  
Interest expense79,943  76,933  70,637  65,880  58,690  48,748  
Net interest income195,806  188,918  187,246  190,215  189,420  182,236  
Provision for loan losses8,260  7,195  7,184  9,319  8,725  9,402  
Net interest income after provision for loan losses187,546  181,723  180,062  180,896  180,695  172,834  
Noninterest income82,619  70,682  51,063  57,270  51,478  47,939  
Noninterest expense132,941  127,686  114,051  119,409  113,990  110,908  
Income before taxes137,224  124,719  117,074  118,757  118,183  109,865  
Income tax expense26,703  24,398  23,114  23,439  24,436  23,000  
Net income$110,521  100,321  93,960  95,318  93,747  86,865  
Profitability and other ratios:
Return on avg. assets (1)
1.62 %1.55 %1.52 %1.54 %1.54 %1.50 %
Return on avg. common equity (1)
10.28 %9.77 %9.49 %9.60 %9.60 %9.18 %
Return on avg. tangible common equity (1)
18.28 %17.74 %17.60 %18.14 %18.44 %18.01 %
Dividend payout ratio (16)
12.31 %12.88 %13.39 %13.79 %14.89 %16.57 %
Net interest margin (2)
3.43 %3.48 %3.62 %3.63 %3.65 %3.69 %
Noninterest income to total revenue (3)
29.67 %27.23 %21.43 %23.14 %21.37 %20.83 %
Noninterest income to avg. assets (1)
1.21 %1.09 %0.83 %0.92 %0.85 %0.83 %
Noninterest exp. to avg. assets (1)
1.94 %1.98 %1.85 %1.92 %1.87 %1.91 %
Efficiency ratio (4)
47.75 %49.19 %47.86 %48.25 %47.32 %48.18 %
Avg. loans to avg. deposits
97.16 %98.66 %97.71 %95.98 %95.29 %98.70 %
Securities to total assets
13.01 %12.99 %13.48 %13.10 %13.03 %12.40 %
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
September 30, 2019September 30, 2018
 Average BalancesInterestRates/ YieldsAverage BalancesInterestRates/ Yields
Interest-earning assets
Loans (1) (2)
$19,216,835  $247,147  5.21 %$17,259,139  $221,901  5.15 %
Securities
Taxable1,712,265  10,655  2.47 %1,803,104  12,209  2.69 %
Tax-exempt (2)
1,795,098  13,313  3.51 %1,272,529  10,074  3.72 %
Federal funds sold and other802,326  4,634  2.29 %647,728  3,926  2.40 %
Total interest-earning assets23,526,524  $275,749  4.78 %20,982,500  $248,110  4.76 %
Nonearning assets
Intangible assets1,866,223  1,857,413  
Other nonearning assets1,741,416  1,285,138  
Total assets$27,134,163  $24,125,051  
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking3,237,155  9,517  1.17 %3,076,025  7,843  1.01 %
Savings and money market7,614,558  27,303  1.42 %7,284,373  21,125  1.15 %
Time4,351,473  25,711  2.34 %3,421,451  15,204  1.76 %
Total interest-bearing deposits15,203,186  62,531  1.63 %13,781,849  44,172  1.27 %
Securities sold under agreements to repurchase134,197  152  0.45 %146,864  165  0.44 %
Federal Home Loan Bank advances2,136,928  11,591  2.15 %1,497,511  8,171  2.16 %
Subordinated debt and other borrowings533,194  5,669  4.22 %468,990  6,182  5.29 %
Total interest-bearing liabilities18,007,505  79,943  1.76 %15,895,214  58,690  1.46 %
Noninterest-bearing deposits4,574,821  —  —  4,330,917  —  —  
Total deposits and interest-bearing liabilities22,582,326  $79,943  1.40 %20,226,131  $58,690  1.15 %
Other liabilities286,831  20,490  
Stockholders' equity 4,265,006  3,874,430  
Total liabilities and stockholders' equity$27,134,163  $24,121,051  
Net  interest  income 
$195,806  $189,420  
Net interest spread (3)
3.02 %3.30 %
Net interest margin (4)
3.43 %3.65 %
(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 $7.5 million of taxable equivalent income for the three months ended Sept. 30, 2019 compared to $3.8 million for the three months ended Sept. 30, 2018. 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 Sept. 30, 2019 would have been 3.37% compared to a net interest spread of 3.61% for the quarter ended Sept. 30, 2018.
(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)Nine months endedNine months ended
September 30, 2019September 30, 2018
 Average BalancesInterestRates/ YieldsAverage BalancesInterestRates/ Yields
Interest-earning assets
Loans (1) (2)
$18,593,509  $714,179  5.23 %$16,653,548  $621,873  5.04 %
Securities
Taxable1,779,512  36,438  2.74 %1,796,816  35,179  2.62 %
Tax-exempt (2)
1,628,742  37,541  3.67 %1,162,587  25,709  3.51 %
Federal funds sold and other602,148  11,325  2.51 %476,219  7,861  2.21 %
Total interest-earning assets22,603,911  $799,483  4.85 %20,089,170  $690,622  4.66 %
Nonearning assets
Intangible assets1,856,324  1,860,649  
Other nonearning assets1,580,762  1,246,081  
Total assets$26,040,997  $23,195,900  
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking3,173,228  28,145  1.19 %3,008,696  19,336  0.86 %
Savings and money market7,503,407  80,587  1.44 %6,850,249  49,294  0.96 %
Time3,937,486  67,004  2.28 %2,960,055  32,290  1.46 %
Total interest-bearing deposits14,614,121  175,736  1.61 %12,819,000  100,920  1.05 %
Securities sold under agreements to repurchase120,346  439  0.49 %133,489  438  0.44 %
Federal Home Loan Bank advances2,076,647  33,107  2.13 %1,655,222  24,867  2.01 %
Subordinated debt and other borrowings491,384  18,231  4.96 %470,564  18,270  5.19 %
Total interest-bearing liabilities17,302,498  227,513  1.76 %15,078,275  144,495  1.28 %
Noninterest-bearing deposits4,391,400  —  —  4,301,952  —  —  
Total deposits and interest-bearing liabilities21,693,898  $227,513  1.40 %19,380,227  $144,495  1.00 %
Other liabilities212,813  14,145  
Stockholders' equity 4,134,286  3,801,528  
Total liabilities and stockholders' equity$26,040,997  $23,195,900  
Net  interest  income 
$571,970  $546,127  
Net interest spread (3)
3.09 %3.38 %
Net interest margin (4)
3.51 %3.70 %
(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 $20.9 million of taxable equivalent income for the nine months ended Sept. 30, 2019 compared to $10.4 million for the nine months ended Sept. 30, 2018. 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 nine months ended Sept. 30, 2019 would have been 3.45% compared to a net interest spread of 3.67% for the nine months ended Sept. 30, 2018.
(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)SeptemberJuneMarchDecemberSeptemberJune
201920192019201820182018
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans73,263  76,077  96,144  87,834  77,868  70,887  
Other real estate (ORE) and
other nonperforming assets (NPAs)
30,049  26,658  15,138  15,393  17,731  20,229  
Total nonperforming assets$103,312  102,735  111,282  103,227  95,599  91,116  
Past due loans over 90 days and still accruing interest$2,450  2,733  1,982  1,558  1,773  1,572  
Accruing troubled debt restructurings (5)
$5,803  7,412  5,481  5,899  6,125  5,647  
Accruing purchase credit impaired loans$12,887  12,632  13,122  14,743  21,473  22,993  
Net loan charge-offs$4,866  4,136  3,565  5,729  4,410  3,936  
Allowance for loan losses to nonaccrual loans127.8 %118.6 %90.7 %95.2 %102.7 %106.7 %
As a percentage of total loans:
Past due accruing loans over 30 days0.24 %0.21 %0.22 %0.34 %0.25 %0.23 %
Allowance for loan losses0.48 %0.48 %0.48 %0.47 %0.46 %0.44 %
Nonperforming assets to total loans, ORE and other NPAs0.53 %0.55 %0.61 %0.58 %0.55 %0.53 %
    Classified asset ratio (Pinnacle Bank) (8)
13.5 %13.9 %13.0 %12.4 %13.7 %12.6 %
Annualized net loan charge-offs to avg. loans (7)
0.10 %0.09 %0.08 %0.11 %0.10 %0.10 %
Wtd. avg. commercial loan internal risk ratings (6)
45.344.944.944.44.54.4
44.44.54.44.44.5
Interest rates and yields:
Loans5.21 %5.22 %5.28 %5.22 %5.15 %5.04 %
Securities3.00 %3.20 %3.37 %3.22 %3.11 %2.91 %
Total earning assets4.78 %4.85 %4.94 %4.85 %4.76 %4.66 %
Total deposits, including non-interest bearing1.25 %1.25 %1.20 %1.08 %0.97 %0.78 %
Securities sold under agreements to repurchase0.45 %0.49 %0.54 %0.50 %0.44 %0.47 %
FHLB advances2.15 %2.14 %2.10 %2.18 %2.16 %2.06 %
Subordinated debt and other borrowings4.22 %5.34 %5.44 %5.33 %5.29 %5.20 %
Total deposits and interest-bearing liabilities1.40 %1.43 %1.37 %1.27 %1.15 %1.01 %
Capital and other ratios (8):
Pinnacle Financial ratios:
Stockholders' equity to total assets15.6 %15.7 %15.9 %15.8 %15.9 %16.0 %
Common equity Tier one9.6 %9.5 %9.4 %9.6 %9.4 %9.3 %
Tier one risk-based9.6 %9.5 %9.4 %9.6 %9.4 %9.3 %
Total risk-based13.2 %12.0 %12.0 %12.2 %12.1 %12.0 %
Leverage8.9 %9.1 %9.0 %8.9 %8.8 %8.8 %
Tangible common equity to tangible assets9.4 %9.4 %9.3 %9.1 %9.0 %8.9 %
Pinnacle Bank ratios:
Common equity Tier one11.1 %10.3 %10.4 %10.5 %10.3 %10.2 %
Tier one risk-based11.1 %10.3 %10.4 %10.5 %10.3 %10.2 %
Total risk-based12.1 %11.3 %11.4 %11.5 %11.4 %11.2 %
Leverage10.4 %9.8 %9.9 %9.8 %9.6 %9.7 %
Construction and land development loans
as a percentage of total capital (19)
79.9 %82.6 %84.1 %85.2 %87.8 %94.6 %
Non-owner occupied commercial real estate and
multi-family as a percentage of total capital (19)
272.8 %288.9 %282.5 %277.7 %287.6 %304.3 %
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)SeptemberJuneMarchDecemberSeptemberJune
201920192019201820182018
Per share data:
Earnings  – basic$1.45  1.31  1.22  1.24  1.22  1.13  
Earnings - basic, excluding the adjustments noted below$1.45  1.43  1.24  1.26  1.22  1.15  
Earnings  – diluted$1.44  1.31  1.22  1.23  1.21  1.12  
Earnings - diluted, excluding the adjustments noted below$1.45  1.42  1.24  1.25  1.21  1.15  
Common dividends per share$0.16  0.16  0.16  0.16  0.14  0.14  
Book value per common share at quarter end (9)
$55.97  54.29  52.63  51.18  50.05  49.15  
Tangible book value per common share at quarter end (9)
$31.60  30.26  28.61  27.27  26.21  25.28  
Revenue per diluted share$3.64  3.39  3.09  3.19  3.11  2.97  
Revenue per diluted share, excluding the adjustments noted below$3.63  3.47  3.12  3.22  3.11  2.97  
Noninterest expense per diluted share$1.74  1.67  1.48  1.54  1.47  1.43  
Noninterest expense per diluted share, excluding the adjustments noted below$1.73  1.59  1.48  1.53  1.47  1.38  
Investor information:
Closing sales price on last trading day of quarter$56.75  57.48  54.70  46.10  60.15  61.35  
High closing sales price during quarter$61.14  59.23  59.55  61.04  66.20  68.10  
Low closing sales price during quarter$50.78  52.95  46.35  44.03  60.05  61.35  
Other information:
Gains on residential mortgage loans sold:
Residential mortgage loan sales:
Gross loans sold 302,473  291,813  193,830  236,861  278,073  264,934  
Gross fees (10)
 9,392  8,485  5,695  6,184  7,756  7,134  
Gross fees as a percentage of loans originated3.11 %2.91 %2.94 %2.61 %2.79 %2.69 %
Net gain on residential mortgage loans sold 7,402  6,011  4,878  3,141  3,902  3,777  
Investment gains (losses) on sales of securities, net (15)
 417  (4,466) (1,960) (2,295) 11  —  
Brokerage account assets, at quarter end (11)
 4,355,429  4,287,985  4,122,980  3,763,911  3,998,774  3,745,635  
Trust account managed assets, at quarter end 2,530,356  2,425,791  2,263,095  2,055,861  2,074,027  1,920,226  
Core deposits (12)
 17,103,470