Investor Call SECOND QUARTER 2025 JULY 16, 2025 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 Forward Looking Statements All statements, other than statements of historical fact, included in this presentation, 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 o ...

Core Viewpoint - Pinnacle Financial reported strong financial results for the quarter ended June 2025, with significant year-over-year growth in revenue and earnings per share, exceeding market expectations [1][2]. Financial Performance - Revenue for the quarter was $504.99 million, a 37.8% increase year-over-year, surpassing the Zacks Consensus Estimate of $492.81 million by 2.47% [1]. - Earnings per share (EPS) reached $2.00, compared to $1.63 a year ago, reflecting a surprise of 4.17% against the consensus estimate of $1.92 [1]. Key Metrics - Net Interest Margin was reported at 3.2%, matching the average estimate from six analysts [4]. - Efficiency Ratio stood at 56.7%, slightly above the estimated 55.4% by six analysts [4]. - Annualized net loan charge-offs to average loans were 0.2%, in line with the five-analyst average estimate [4]. - Average balances of total interest-earning assets were $49.1 billion, exceeding the estimated $48.7 billion [4]. - Nonaccrual loans totaled $157.17 million, lower than the estimated $180.33 million [4]. - Total nonperforming assets were $162.01 million, compared to the average estimate of $184.79 million [4]. - Total noninterest income was $125.46 million, surpassing the average estimate of $116.7 million [4]. - Net Interest Income was reported at $379.53 million, slightly above the estimated $376.81 million [4]. - Gains on mortgage loans sold, net, were $1.97 million, below the estimated $3 million [4]. - Service charges on deposit accounts were $17.09 million, slightly below the estimated $17.5 million [4]. - Insurance sales commissions were $3.69 million, compared to the average estimate of $4.41 million [4]. - Trust fees were reported at $9.28 million, slightly below the average estimate of $9.4 million [4]. Stock Performance - Pinnacle Financial's shares have returned +15% over the past month, outperforming the Zacks S&P 500 composite's +5% change [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3].

Financial Performance - Pinnacle Financial Partners reported diluted EPS of $2.00 for Q2 2025, a 212.5% increase from $0.64 in Q2 2024[2] - Total revenues for Q2 2025 were $505.0 million, up 37.8% year-over-year from $366.6 million in Q2 2024[11] - Pre-tax, pre-provision net revenue (PPNR) for Q2 2025 was $218.5 million, compared to $95.2 million in Q2 2024, reflecting a growth of over 100%[9] - Net income available to common shareholders for the second quarter of 2025 was $154.7 million, a significant increase of 213.5% compared to $49.4 million in the same quarter of 2024[31] - Basic net income per common share for Q2 2025 was $2.01, up from $0.65 in Q2 2024, representing a growth of 209.2%[31] - For the first half of 2025, net income available to common shareholders was $291,352, significantly higher than $169,510 in the same period of 2024, marking a 71.8% increase year-over-year[51] Revenue and Income Growth - Total revenues for Q2 2025 were approximately $505.0 million, marking a 37.8% increase year-over-year[16] - Adjusted total revenues for Q2 2025 were $505.0 million, a 15.1% increase from $438.7 million in Q2 2024[12] - Noninterest income for Q2 2025 was $47.9 million, up $6.1 million from Q2 2024, with a notable contribution from equity investments[15] - Wealth management revenues increased to $32.3 million in Q2 2025, up 16.4% from $27.8 million in Q2 2024[15] - Income from the investment in Banker's Healthcare Group (BHG) rose to $26.0 million in Q2 2025, a 39.3% increase from $18.7 million in Q2 2024[15] - Noninterest income for the first half of 2025 totaled $223.9 million, compared to $144.4 million in the same period of 2024, an increase of 55.2%[31] Asset and Deposit Growth - Total assets reached $54.8 billion as of June 30, 2025, marking an increase of approximately $5.4 billion from June 30, 2024[7] - Total deposits rose to $45.0 billion as of June 30, 2025, up from $39.8 billion a year earlier, marking a growth of 13.4%[30] - Noninterest-bearing deposits rose by $133.4 million in Q2 2025, totaling a year-to-date increase of $470.3 million or approximately 11.5% annualized[8] - Total loans reached $37,105,164,000 in June 2025, up from $36,136,746,000 in March 2025, indicating a growth of about 2.68%[34] - Core deposits totaled $39.76 billion at the end of June 2025, slightly down from $40.01 billion in March 2025, reflecting a decrease of 0.60%[45] Expense Management - Noninterest expense for Q2 2025 was $286.4 million, up 5.5% from $271.4 million in Q2 2024[13] - Salaries and employee benefits increased to $181.2 million in Q2 2025, a 20.7% rise from $150.1 million in Q2 2024[18] - The efficiency ratio improved to 55.5% for the first half of 2025, down from 57.5% in the same period of 2024, indicating enhanced operational efficiency[31] - The efficiency ratio improved to 56.72% in June 2025 from 59.52% in March 2025, indicating enhanced operational efficiency[47] Credit Quality and Provisions - The company reported a provision for credit losses of $24.2 million in Q2 2025, compared to $30.2 million in Q2 2024, showing a decrease of 19.9%[31] - Nonperforming assets totaled $162.01 million as of June 30, 2025, a decrease from $175.23 million in the previous quarter, indicating a reduction of 7.0%[43] - The allowance for credit losses was $422,125,000 in June 2025, slightly up from $417,462,000 in March 2025[34] - The allowance for credit losses to nonaccrual loans ratio was 268.6% as of June 30, 2025, compared to 243.3% in the previous quarter, showing an increase in coverage[43] Shareholder Returns - A quarterly cash dividend of $0.24 per common share was declared, payable on August 29, 2025[20] - The book value per common share increased to $82.79 as of June 30, 2025, up from $80.46 at the end of 2024[19] - The common dividends paid increased to $0.48 per share, totaling $37,766,000 for the period ending December 31, 2024[33] Capital and Equity - Pinnacle Financial's total shareholders' equity reached $6.6 billion as of June 30, 2025, up from $6.2 billion at the same time last year, indicating a year-over-year increase of 7.5%[30] - The Tier one risk-based capital ratio was 11.2% as of June 30, 2025, unchanged from the previous quarter, indicating stable capital adequacy[43] - The ratio of tangible common equity to tangible assets was 8.60% in June 2025, consistent with the previous quarter and the same period last year[53] Employee Metrics - The number of full-time equivalent employees increased to 3,627 in June 2025, up from 3,595 in March 2025, a growth of 0.89%[45] - The annualized revenues per full-time equivalent employee rose to $558.5 thousand in June 2025, compared to $522.2 thousand in March 2025, an increase of 6.93%[45]

Analysts on Wall Street project that Pinnacle Financial (PNFP) will announce quarterly earnings of $1.92 per share in its forthcoming report, representing an increase of 17.8% year over year. Revenues are projected to reach $492.81 million, increasing 34.4% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections durin ...

Financial Performance - Diluted net income per common share for Q1 2025 was $1.77, up from $1.57 in Q1 2024, representing a 12.7% increase[142] - Net interest income for Q1 2025 was $364.4 million, up $46.4 million or 14.6% compared to Q1 2024[143] - Noninterest income decreased by $11.7 million or 10.6% in Q1 2025 compared to Q1 2024, primarily due to a prior year mortgage servicing right[145] - The efficiency ratio for Q1 2025 was 59.5%, compared to 56.6% in Q1 2024, indicating increased expenses relative to revenue[148] - Income tax expense for Q1 2025 was $30.0 million, with an effective tax rate of 17.6%, down from 18.1% in Q1 2024[149] Loan and Deposit Growth - Total loans increased to $36.1 billion at March 31, 2025, a rise of $651 million or 1.8% from December 31, 2024[150] - Total deposits reached $44.5 billion at March 31, 2025, an increase of $1.6 billion or 3.8% from December 31, 2024[150] - The average balance of loans increased to $36.04 billion for the three months ended March 31, 2025, with an interest yield of 6.24%, compared to $33.04 billion and 6.67% in the same period in 2024[157] - Total loans outstanding increased to $36.1 billion as of March 31, 2025, compared to $35.5 billion at December 31, 2024[192] - Total deposits rose by $1.6 billion to $44.5 billion between December 31, 2024, and March 31, 2025[192] Credit Quality - Provision for credit losses decreased to $17.0 million in Q1 2025, down 50.8% from $34.5 million in Q1 2024[144] - The allowance for credit losses was $417.5 million at March 31, 2025, slightly up from $414.5 million at December 31, 2024[151] - Loans past due 30 to 89 days decreased to $55.26 million from $62.13 million as of December 31, 2024, while loans past due 90 days or more decreased to $96.26 million from $103.95 million[198] - Nonperforming assets increased to $175.2 million from $149.1 million at December 31, 2024, with nonaccrual loans accounting for $171.6 million[199] - The allowance for credit losses (ACL) was approximately $417.5 million as of March 31, 2025, representing 1.16% of total loans, a slight decrease from 1.17% at December 31, 2024[200] Noninterest Expenses - Noninterest expense increased by $33.1 million or 13.7% in Q1 2025, driven by a rise in salaries and employee benefits[146] - Total noninterest expense for the three months ended March 31, 2025, was $275.5 million, an increase of 13.7% from $242.4 million in the same period last year[179] - Salaries and employee benefits increased by $26.1 million to $172.1 million for the three months ended March 31, 2025, reflecting a rise of 17.9% compared to the same period in 2024[179] - Cash incentive expense rose to $20.3 million for the three months ended March 31, 2025, compared to $13.6 million in the same period last year, an increase of 49.0%[182] - Equipment and occupancy expenses rose to $46.2 million for the three months ended March 31, 2025, up from $39.6 million in the same period of 2024, partly due to the relocation of corporate headquarters[185] Investment and Funding - The investment securities portfolio amounted to $8.7 billion at March 31, 2025, compared to $8.4 billion at December 31, 2024, with a tax equivalent yield of 4.30%[205] - Core funding as a percentage of total funding increased from 83.9% at December 31, 2024, to 85.1% at March 31, 2025[209] - Total noncore funding decreased to $7.04 billion at March 31, 2025, from $7.33 billion at December 31, 2024[210] - Pinnacle Bank had approximately $2.6 billion in additional availability with the Federal Home Loan Bank as of March 31, 2025[208] - The company had approximately $6.5 billion in available Federal Reserve discount window lines of credit as of March 31, 2025[238] Shareholder Actions - Shareholders' equity increased from $6.4 billion at December 31, 2024, to $6.5 billion at March 31, 2025[212] - During Q1 2025, the bank paid dividends of $30.4 million, remaining within regulatory limits[216] - The company authorized a new share repurchase program for up to $125 million, effective through March 31, 2026[215] Economic and Regulatory Factors - The company’s CECL models utilize macroeconomic factors such as unemployment rate, GDP, and commercial property price index to estimate future credit losses[201] - Management's model governance and validation processes are subject to regulatory review to ensure compliance with guidelines[228] - The liquidity coverage ratio was in compliance as of March 31, 2025, indicating adequate liquidity management[234] - Interest rate sensitivity modeling showed a more neutral position as of March 31, 2025, compared to the previous year[222] - The company expects to continue incurring costs associated with planned technology improvements to enhance infrastructure[241]

Financial Performance Highlights - Total revenues increased, with adjusted figures showing 14.2% growth[16] - Adjusted Fully Diluted EPS (FD EPS) increased by 24.2%[16] - Tangible book value per share grew by 10.6%[147] Loan and Deposit Growth - Net loan growth showed strategic expansion of $756 million[19] - Total deposits increased, with strategic expansion contributing $1.1 billion[110] - Average loans increased to $36042 million[28] - Average deposits increased to $43019 million[35] Asset Quality - Classified Asset Ratio decreased to 4.4%[105] - ACL decreased to 1.16% of total loans[52] - Net charge-offs are estimated to be between 0.16% and 0.20% of average loans for 2025[58] BHG Financial Overview - BHG reported Q1 earnings of $44.1 million, the highest since Q3 2023[53] - BHG's bank auction spreads finished at 9.5% for 1Q25[156] - Over 80% of BHG's Q1 2025 originations were to FICO scores of 700+[165] Forward Outlook - EOP loan growth for 2025 is estimated to be 8-11% over 2024[58] - EOP deposit growth for 2025 is estimated to be 7-10% over 2024[58] - Net interest income growth for 2025 is estimated to be 11-13% year over year[58]

Financial Data and Key Metrics Changes - Pinnacle Financial Partners reported a 14.2% revenue growth in Q1 2025 compared to Q1 2024, continuing a double-digit growth trajectory with a 10.1% CAGR over the last four years [15][16] - Adjusted EPS grew by 24.2% in Q1 2025 over Q1 2024, while tangible book value per share increased by 10.6% in the same period [16][16] - The company maintained a net interest margin (NIM) of 3.21%, with expectations for it to remain flat with some upward bias in Q2 2025 [42][42] Business Line Data and Key Metrics Changes - End-of-period loans increased by 7.3% on a quarter annualized basis, driven by new markets and recruited bankers [35][36] - Deposit growth was a highlight, with an increase of $1.6 billion in Q1 2025, following a $1.9 billion increase in the previous quarter [39][39] - The company anticipates total deposit growth of 7% to 10% for 2025, despite expecting a slowdown in Q2 due to seasonal factors [40][40] Market Data and Key Metrics Changes - The company has reduced its concentration in commercial real estate, which has impacted loan growth but has allowed for a focus on C&I loan growth [30][25] - The average years of experience for newly hired revenue producers is 18 years, contributing to high-quality loan growth [26][28] Company Strategy and Development Direction - Pinnacle's strategy focuses on continuously attracting top bankers and enabling them to consolidate their client relationships, which is seen as a sustainable growth model [18][23] - The company aims to maintain its unique work environment and culture, which has been recognized as one of the best workplaces in America [31][32] - The management emphasizes a market share takeaway strategy that is less reliant on overall economic growth [22][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current economic volatility but remains confident in the company's ability to grow and produce shareholder value [13][34] - The outlook for 2025 includes expectations for client balance sheet growth consistent with prior guidance, despite uncertainties in the broader economy [34][34] - The company is monitoring potential impacts from tariffs and trade wars on its portfolio, particularly in sectors like trucking and multifamily [111][114] Other Important Information - The company reported a decrease in net charge-offs to 16 basis points in Q1 2025, with expectations for charge-offs to remain around 16 to 20 basis points for the year [45][45] - BHG had a strong quarter, providing fee revenues of over $20 million, leading to an upward revision of earnings estimates for 2025 from 10% growth to 20% growth over 2024 [50][51] Q&A Session Summary Question: Did you change the baseline assumption under CECL for calculating the reserves? - The company kept the baseline unchanged but used an adverse scenario to influence qualitative assumptions [62] Question: Is the growth or higher target for BHG dependent on continued securitizations? - BHG has plenty of room through the bank channel and plans for another ABS issuance towards the end of the year [64] Question: What are the expectations for deposit growth in Q2? - April is traditionally a tough month for deposit growth, but the company believes it has advantages in deposit pricing [72] Question: How does the company view the current loan pricing environment? - The company is not overly concerned about volume but is more focused on the pricing aspect of loans [76] Question: What areas are credit officers focusing on regarding tariffs and trade wars? - Credit officers are focused on trucking, multifamily, and leveraged lending to assess potential impacts [111] Question: What is the outlook for capital ratios given the growth outlook? - The company has not set a specific floor for CET1 but aims to maintain stability in risk-based capital ratios [134]

Core Insights - Pinnacle Financial reported revenue of $462.85 million for the quarter ended March 2025, reflecting an 8.1% increase year-over-year, but fell short of the Zacks Consensus Estimate of $478.5 million by 3.27% [1] - The company's EPS was $1.90, up from $1.53 in the same quarter last year, exceeding the consensus estimate of $1.82 by 4.40% [1] Financial Performance Metrics - Net Interest Margin stood at 3.2%, matching the average estimate of three analysts [4] - Efficiency Ratio was reported at 59.5%, higher than the estimated 55.5% by three analysts [4] - Nonaccrual loans totaled $171.57 million, exceeding the average estimate of $157.20 million from two analysts [4] - Annualized net loan charge-offs to average loans were 0.2%, consistent with the average estimate of 0.2% from two analysts [4] - Average balances of total interest-earning assets were $47.68 billion, slightly above the average estimate of $47.63 billion [4] - Total nonperforming assets reached $175.23 million, surpassing the average estimate of $158.91 million from two analysts [4] - Net Interest Income was $364.43 million, close to the average estimate of $365.05 million based on three analysts [4] - Total noninterest income was reported at $98.43 million, below the average estimate of $113.42 million from three analysts [4] - Gains on mortgage loans sold, net, were $2.51 million, slightly lower than the average estimate of $2.65 million from two analysts [4] Stock Performance - Pinnacle Financial's shares have returned -12.4% over the past month, compared to a -3.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Company Performance - Pinnacle Financial reported quarterly earnings of $1.90 per share, exceeding the Zacks Consensus Estimate of $1.82 per share, and up from $1.53 per share a year ago, representing an earnings surprise of 4.40% [1] - The company posted revenues of $462.85 million for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 3.27%, compared to year-ago revenues of $428.14 million [2] - Over the last four quarters, Pinnacle Financial has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Pinnacle Financial shares have declined approximately 21.3% since the beginning of the year, while the S&P 500 has decreased by 8.8% [3] - The current consensus EPS estimate for the upcoming quarter is $1.94 on revenues of $497.13 million, and for the current fiscal year, it is $7.78 on revenues of $2.01 billion [7] Industry Context - The Zacks Industry Rank for Banks - Southeast, to which Pinnacle Financial belongs, is currently in the bottom 44% of over 250 Zacks industries, indicating potential underperformance compared to the top 50% of ranked industries [8]

Financial Performance - Pinnacle Financial Partners reported a diluted EPS of $1.77 for Q1 2025, up 12.7% from $1.57 in Q1 2024; adjusted diluted EPS was $1.90, a 24.2% increase from $1.53[1][2]. - Pre-tax income for Q1 2025 was $170,407 thousand, up from $151,275 thousand in Q1 2024, indicating a 12.7% increase[36]. - Basic earnings per common share for Q1 2025 were $1.78, compared to $1.58 in Q1 2024, marking a 12.7% increase[38]. - Diluted earnings per common share for Q1 2025 were $1.77, up from $1.57 in Q1 2024, reflecting a 12.8% increase[38]. - Net income available to common shareholders was $136,610 thousand for the quarter, compared to $120,146 thousand in the same quarter of the previous year, reflecting a 13.66% increase[28]. Asset and Loan Growth - Year-over-year loan growth was 9.0%, with total loans reaching $36.1 billion as of March 31, 2025, compared to $33.2 billion a year earlier[3][5]. - Total assets increased to $54.3 billion, reflecting a year-over-year growth of 11.0%[4]. - Total assets reached $54,254,804 thousand, representing a 3.16% increase from $52,589,449 thousand in December 2024[28]. - Total loans increased to $36,136,746 thousand in March 2025, up 1.83% from $35,485,776 thousand in December 2024[28]. - The company anticipates loan growth guidance of 8% to 11% for 2025 compared to 2024 year-end loan balances[5]. Income and Revenue - Net interest income rose to $364.4 million, a 14.6% increase from $318.0 million in Q1 2024; net interest margin improved to 3.21% from 3.04%[8][9]. - Noninterest income decreased to $98.4 million, down 10.6% year-over-year, but adjusted noninterest income increased by 12.9% to $110.9 million[9][10]. - Total revenues excluding adjustments for Q1 2025 were $475,366 thousand, compared to $416,325 thousand in Q1 2024, reflecting a 14.2% year-over-year growth[36]. - Noninterest income totaled $98,426 thousand in March 2025, down from $111,55 thousand in Q4 2024, primarily due to a decline in other noninterest income[25]. Expenses and Efficiency - Noninterest expense for Q1 2025 was $275.5 million, a 13.7% increase from $242.4 million in Q1 2024; adjusted noninterest expense rose by 17.2%[11][12]. - Salaries and employee benefits increased by 17.9% to $172.1 million, driven by headcount growth and higher incentive payouts[14]. - The efficiency ratio improved to 59.52% in March 2025, compared to 63.37% in March 2024[28]. - The efficiency ratio for Q1 2025 was 59.52%, compared to 56.61% in Q1 2024, showing a decline in efficiency[36]. Credit Quality and Allowances - The annualized net loan charge-offs to average loans ratio improved to 0.16% compared to 0.24% in the previous quarter[15]. - Nonperforming assets to total loans increased to 0.48% from 0.42% in the previous quarter[15]. - The allowance for credit losses to total loans was 1.16%, consistent with the previous quarter[15]. - Provision for credit losses decreased to $16.96 million in Q1 2025 from $29.65 million in Q4 2024, indicating improved credit quality[25]. - Nonaccrual loans increased to $171,570 thousand in March 2025, up 16.0% from $147,825 thousand in December 2024[33]. Capital and Equity - Shareholders' equity to total assets was 12.1%, a slight decrease from 12.2% as of December 31, 2024[15]. - The book value per common share increased to $81.57 from $80.46 at the end of 2024[15]. - The tangible book value per common share at the end of Q1 2025 was $57.47, up from $51.98 in Q1 2024, indicating an increase of 10.5%[38]. - Net tangible common equity rose to $4,456,749 thousand in Q1 2025, compared to $4,344,072 thousand in Q4 2024, an increase of 2.6%[41]. Employee Metrics - The number of employees (full-time equivalent) increased to 3,595 in March 2025, up from 3,565.5 in December 2024[35]. - The annualized revenues per full-time equivalent employee were $522.2 thousand, a decrease from $530.4 thousand in the previous quarter[35]. - The total assets per full-time equivalent employee increased to $15,092 thousand in March 2025, compared to $14,750 thousand in December 2024[35]. Market Position and Recognition - Pinnacle Financial is recognized as the No. 1 bank in the Nashville-Murfreesboro-Franklin MSA according to 2024 FDIC deposit data[17]. - Pinnacle Financial has been recognized as one of America's Best Banks to Work For for 12 consecutive years[17]. - The firm plans to continue expanding its operations in urban markets across the Southeast[18].