Investor Call

SECOND QUARTER 2024

JULY 17, 2024

Time: 8:30 AM CT

Webcast: www.pnfp.com(investor relations)

M. TERRY TURNER, PRESIDENT AND CEO HAROLD R. CARPENTER, EVP AND CFO

Safe Harbor Statements

Non-GAAP Financial Matters

This presentation contains certain non-GAAP financial measures, including, without limitation, total revenues, net income to common shareholders, earnings per diluted common share, revenue per diluted common share, PPNR, efficiency ratio, noninterest expense, noninterest income and the ratio of noninterest expense to average assets, excluding in certain instances the impact of expenses related to other real estate owned, gains or losses on sale of investment securities, gains associated with the sale-leaseback transaction completed in the second quarter of 2023, losses on the restructuring of certain bank owned life insurance (BOLI) contracts, charges related to the FDIC special assessment, income associated with the recognition of a mortgage servicing asset in the first quarter of 2024, fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives in the second quarter of 2024 and other matters for the accounting periods presented. This presentation may also contain certain other non-GAAP capital ratios and performance measures that exclude the impact of goodwill and core deposit intangibles associated with Pinnacle Financial's acquisitions of BNC, Avenue Bank, Magna Bank, CapitalMark Bank & Trust, Mid-America Bancshares, Inc., Cavalry Bancorp, Inc. and other acquisitions which collectively are less material to the non-GAAP measure as well as the impact of Pinnacle Financial's Series B Preferred Stock. The presentation of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Because non-GAAP financial measures presented in this presentation are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies.

Pinnacle Financial believes that these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of its operating performance. In addition, because intangible assets such as goodwill and the core deposit intangible, and the other items excluded each vary extensively from company to company, Pinnacle Financial believes that the presentation of this information allows investors to more easily compare Pinnacle Financial's results to the results of other companies. Pinnacle Financial's management utilizes this non-GAAP financial information to compare Pinnacle Financial's operating performance for 2024 versus certain periods in 2023 and to internally prepared projections.

3

Shareholder Value Dashboard

2Q24 Summary Results of Key GAAPMeasures

Total Revenues

Total Loans

(millions)

NPA/ Loans & ORE

PNFP's Median Quarterly Performance of 0.26%

FD EPS

Total Deposits

(in millions)

Classified Asset Ratio

PNFP's Median Quarterly Performance of 4.8%

Net Income Available to

Common Shareholders

Book Value per Common Share

NCOs

PNFP's Median Quarterly Performance of 0.17%

4

Shareholder Value Dashboard

2Q24 Summary Results of Key Non-GAAPMeasures

Total Revenues*

CAGR 12.0%

Total Loans

(millions)

CAGR 11.4%

NPA/ Loans & ORE

FD EPS*

CAGR 37.4%

Total Core Deposits

(millions)

CAGR 15.0%

Classified Asset Ratio

Adjusted Pre-TaxPre-Provision

Net Income*

CAGR 9.8%

Tangible Book Value per Share**

CAGR 10.9%

NCOs

PNFP's Median Quarterly Performance of 0.26%

PNFP's Median Quarterly Performance of 4.8%

PNFP's Median Quarterly Performance of 0.17%

*: excluding gains and losses on sales of investment securities, recognition of a mortgage servicing asset, loss on BOLI restructuring, gain on the sale of fixed assets as a result of a sale-leaseback transaction, ORE expense (income), FDIC special assessment, FHLB restructuring charges, hedge termination charges and fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives. PPNR represents pre-tax,pre-provision net revenues.

**: excluding goodwill, core deposit and other intangible assets

5

Note: For a reconciliation of these Non-GAAP financial measures to the most directly comparable GAAP measures, see slides 53-54.

2Q24 Financial Information

Our advantaged markets, vulnerable competitors, ability to attract talent and our relentless focus on a differentiated client experience lead to resilience even in challenging periods like 2024.

6

Loan Volume Growth and Yield Improvement Bolster 2Q NII

Linked-quarter annualized growth in average loans was 5.7% in Q2

Average Loan Growth and Yields

$35,000

6.71%

7.00%

$1,200

$33,042

$33,517

6.50%

$32,372

Average Loans (millions)

$30,000

$29,634

$30,882

$31,530

6.00%

$1,000

$25,000

$27,021

$28,402

5.50%

Loan Yields

$800

$25,397

$22,493

$22,525

$22,848

$23,180

$22,986

$23,226

$23,849

5.00%

$600

$20,000

$20,009

$22,257

4.50%

$400

$15,000

4.00%

$200

3.50%

$0

$10,000

3.00%

Fixed Rate Loan Maturities / Cash flow

4.80%

4.78%

4.75%

4.70%

4.65%

4.60%

4.55%

4.50%

4.45%

4.40%

3Q24

4Q24

1Q25

2Q25

3Q25

4Q25

1Q26

2Q26

FX Loan CFLW

Mat Rate

Highlights

  • Rates on aggregate origination continued to improve in 2Q on strength in SOFR and prime-based loan pricing
  • Fixed-ratelending challenged by rate environment; pricing slipped vs. 1Q while production of fixed-rate loans was 15% of originations
  • Fixed rate loans was 36% of the portfolio at June 30, 2024 compared to 40% a year ago
  • Progress on reducing exposure to Construction and NOO CRE borrowers having a modest impact on our historical growth expectations for our firm.

*Excludes leases, credit cards, PPP loans and loans HFS; loan yields exclude tax equivalent income adjustments; loan yields consider contractual floors for individual loans but exclude the impact of other loan interest rate derivative products.

7

Deposit Growth Continued With No Elevation of Cost

Average deposit rates remain constant at 3.10%, equaling first quarter results

Average Deposit Growth

$40,000

3.10%

3.25%

Average Deposits (millions)

$36,000

$38,078

$38,516

$38,996

$39,454

3.00%

$36,356

$32,000

$34,177

$35,292

2.75%

$33,108

2.50%

$31,539

$31,484

$28,000

$27,621

$28,014

$28,740

$30,034

2.25%

Deposit Costs

$24,000

$24,807

$26,352

$27,193

2.00%

$20,000

1.75%

$20,680

1.50%

$16,000

1.25%

$12,000

0.99%

1.00%

$8,000

0.75%

0.50%

$4,000

0.25%

$-

0.00%

Avg. Deposits

Cost of Deposits

Jun. 30,

Jun. 30,

Mar. 31,

Mar. 31,

Jun. 30,

Jun. 30,

2023

2023

2024

2024

2024

2024

EOP Rates

% of Totals

EOP Rates

% of Totals

EOP Rates

% of Totals

Noninterest bearing

---

22.4%

---

20.2%

---

19.9%

Interest-bearing:

Rate sheet

1.84%

18.4%

1.59%

16.0%

1.56%

15.8%

Negotiated

3.53%

21.7%

3.92%

23.1%

3.67%

12.9%

Indexed

4.70%

23.7%

4.87%

29.2%

4.70%

39.3%

CDs

4.01%

13.8%

4.32%

11.4%

4.42%

12.1%

Total IBD

3.57%

77.6%

3.86%

79.8%

3.87%

80.1%

Total Deposits

2.77%

100.0%

3.08%

100.0%

3.10%

100.0%

Quarterly Avg Deposit Rates and Cumulative Beta

3.50%

60.0%

Rate

53%

56%

56%

56%

3.00%

48%

50.0%

Average-DepositsTotalof

BetaDepositCumulative

42%

2.50%

40.0%

35%

2.00%

30.0%

24%

1.50%

20.0%

1.00%

Cost

13%

10.0%

0.50%

0.00%

0.0%

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

Highlights

  • Total deposits, excluding the impact of brokered deposits, up $708.1 million from first quarter
  • Noninterest bearing DDA stable at ~20% of total deposits
  • 2Q average COD was flat at 3.10%; EOP rate +2bps in 2Q, down from a +4bps increase in 1Q
  • Significant shift in balances between 2Q24 and 1Q24 from negotiated to indexed deposits, thus better positioning for anticipated decline in rates

8

Our Ability to Grow Through the Challenging Operating Environment is Compelling

Both NII and NIM appear to have "inflected" in 2Q24

Net Interest Income & NIM

$350

3.75%

mil.)

$325

Interest Inncome ($ in

$300

3.50%

Net Interest Margin

$275

3.25%

$250

$225

3.00%

$200

Net

$175

2.75%

Net Int. Income

NIM

Quarterly Avg. Securities

mil.)in

$7,500

4.50%

Yield

$7,000

4.25%

$6,500

4.00%

BlalancesAverage($

$3,500

3.75%

AverageQuarterly

2.25%

$6,000

3.50%

$5,500

3.25%

$5,000

3.00%

$4,500

2.75%

$4,000

2.50%

$3,000

2.00%

Avg. Securities

Yield

Quarterly Avg. FFS, IB Cash & Repos

$5,000

5.50%

inmil.)

$4,500

5.00%

Yield

4.00%

$4,000

4.50%

BalancesAverage($

$3,500

3.50%

QuarterlyAverage

$3,000

3.00%

$2,500

2.50%

$2,000

2.00%

$1,500

1.50%

$1,000

1.00%

$500

0.50%

$0

0.00%

Avg. FFS, IB Cash & Repos

Yield

Highlights

  • Net interest income growth was 5.3% year-over-year and 17.9% linked-quarter annualized during 2Q
  • Securities yields expand due to purchases of higher earning investments in last month of quarter
  • Earning asset growth combined with NIM expansion drove NII out of a fairly tight range from the past year
  • Our current rate forecast assumes 25bp Fed funds rate decreases in November and December 2024. Expect relationship managers to proactively manage client base should Fed initiate reduced rates

9

Problem Loan Formation Remains Low

Problem loan metrics such as NPAs and classified assets remain near historically low long-term levels

Net Charge Offs

0.33%

0.27%

0.21%

0.20%

0.18% 0.17%

0.16%

0.13%

0.10%

0.11%

0.10%

0.08%

NPA/ Loans & ORE

0.61%

0.58%

0.53%

0.55%

0.46%

0.40%0.38%

0.27%

0.17% 0.16%

0.33% 0.30%

Highlights

  • Most credit metrics continue to outperform long-term historical averages in 2Q24
  • PNFP hiring model aimed at experienced bankers moving seasoned relationships to PNFP is very meaningful to our successful long-term credit performance
  • ACL increased to 1.13%, largely the result of increased specific loss allocations for select commercial borrowers

18.1% 18.7%

Classified Asset Ratio

Potential Problem Loans

1.81%

Past Dues as a % of Total Loans

16.4%

12.9% 12.4% 13.4%

8.1%

5.2%

4.9%

4.0%

4.1%

2.4%

1.61%

1.36%1.39%

1.05% 1.00%

0.77%

0.47%

0.39%

0.19%

0.28% 0.18%

0.40%

0.38%

0.34%

0.31%

0.26%

0.23%

0.18%

0.19%

0.15%

0.17%

0.16%

0.09%

10

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Pinnacle Financial Partners Inc. published this content on 16 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 July 2024 23:03:06 UTC.