PINNACLE FINANCIAL PARTNERS INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - PINNACLE FINANCIAL PARTNERS INC. 8-K 12-31-14 - PINNACLE FINANCIAL PARTNERS INC	form8-k.htm

FOR IMMEDIATE RELEASE

	MEDIA CONTACT:	Nikki Klemmer, 615-743-6132
	FINANCIAL CONTACT:	Harold Carpenter, 615-744-3742
	WEBSITE:	www.pnfp.com

PNFP REPORTS RECORD EARNINGS PER SHARE OF $0.53 FOR 4Q 2014

Loan Growth Exceeds Aggressive Three-Year Targets

NASHVILLE, Tenn., Jan. 20, 2015 – Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $0.53 for the quarter ended Dec. 31, 2014, compared to net income per diluted common share of $0.44 for the quarter ended Dec. 31, 2013, an increase of 20.5 percent. Net income per diluted common share was $2.01 for the year ended Dec. 31, 2014, compared to net income per diluted common share of $1.67 for the year ended Dec. 31, 2013, an increase of 20.4 percent.

"Three years ago, we set out a bold plan that included $1.27 billion in net loan growth, a compound annual growth rate of 11.5 percent for the three-year period," said M. Terry Turner, Pinnacle's president and chief executive officer. "Rapid loan growth was the cornerstone for increased operating leverage and profitability for our firm. I am pleased to report that our $168.8 million of net loan growth in the fourth quarter of 2014 provided the necessary volume to exceed our three-year growth target. Every associate in our firm has helped us achieve our profitability targets in conjunction with this loan growth. While we are excited about these achievements, we continue to see similar opportunities for increased operating leverage as a result of continued balance sheet growth over the next three years."

GROWING THE CORE EARNINGS CAPACITY OF THE FIRM:

Revenues (excluding securities gains and losses) for the quarter ended Dec. 31, 2014 were a record $64.7 million, an increase of $2.3 million from $62.4 million in the third quarter of 2014. Revenues (excluding securities gains and losses) increased 12.6 percent over the same quarter last year.

·	Loans at Dec. 31, 2014 were a record $4.59 billion, an increase of $168.8 million from Sept. 30, 2014. Loans increased $445.5 million from Dec. 31, 2013, for a year-over-year growth rate of 10.7 percent.

Average balances of noninterest-bearing deposit accounts were $1.374 billion in the fourth quarter of 2014 and represented approximately 28.9 percent of total average deposit balances for the quarter, another record for the firm. Fourth quarter 2014 average noninterest-bearing deposits increased 16.5 percent over the same quarter last year.

Return on average assets increased to 1.27 percent for the fourth quarter of 2014, compared to 1.25 percent for the third quarter of 2014 and 1.13 percent for the same quarter last year. Fourth quarter 2014 return on average tangible equity amounted to 13.52 percent, compared to 13.69 percent for the third quarter of 2014 and 12.79 percent for the same quarter last year.

"Two quarters ago, we disclosed increased operating performance targets for our firm, and we remain optimistic about achieving these higher standards of operating performance. In fact, we are already approaching the mid-point of the elevated target range for return on average assets," Turner said. "Over the last few years, we've highlighted our rapid loan growth; however, the continual restructuring of our funding base to include more client operating accounts has also been critical to our success. We believe that despite the significant liquidity in our industry today, banking firms like ours that are capable of efficient and effective core deposit acquisition will be the ones ultimately rewarded by investors."

OTHER FOURTH QUARTER 2014 HIGHLIGHTS:

Revenue growth

o	Net interest income for the quarter ended Dec. 31, 2014 increased to $50.3 million, compared to $49.5 million for the third quarter of 2014 and $45.0 million for the fourth quarter of 2013.

§	The firm's net interest margin was 3.76 percent for the quarter ended Dec. 31, 2014, compared to 3.79 percent last quarter and 3.70 percent for the quarter ended Dec. 31, 2013.

Noninterest income for the quarter ended Dec. 31, 2014 increased to $14.4 million, compared to $12.9 million for the third quarter of 2014 and $12.5 million for the same quarter last year.

§	Wealth management revenues, a component of investment services, increased by approximately $558,000 between the third and fourth quarters of 2014, with most of the increase attributable to end-of-year vendor incentive payments.

§	Other noninterest income increased by approximately $821,000 between the third and fourth quarters of 2014 to $4.9 million, primarily due to increased interchange revenues as well as revenues from several other loan fee categories.

"We have said over the last several years that the achievement of our performance targets will be based primarily on attracting more clients to our firm in order to build a larger revenue base," said Harold R. Carpenter, Pinnacle's chief financial officer. "As a result of the outstanding efforts of our associates, we've seen revenues grow to $245.6 million in 2014 from $189.4 million in 2011, an impressive compound annual growth rate of more than 9 percent. Average noninterest bearing deposits were $650.6 million in 2011 and have grown to $1.26 billion in 2014, representing a compound annual growth rate of approximately 24 percent, more than twice the compound annual growth rate for loans.

"As we turn our attention to 2015, we will remain focused on high-quality organic growth in the Nashville and Knoxville markets, as that has been what has provided for the consistent earnings growth that we all have come to expect from our firm. We will also continue to consider other geographic, product expansion and investment opportunities as they arise, so long as those opportunities provide a clear path to enhanced performance for the entire franchise."

Noninterest expense

o	Noninterest expense for the quarter ended Dec. 31, 2014 was $34.4 million, compared to $34.4 million in the third quarter of 2014 and $32.6 million in the same quarter last year.

§	Salaries and employee benefits were $23.1 million in the fourth quarter of 2014, compared to $21.7 million in the third quarter of 2014 and $21.5 million in the same quarter last year.

"Our fourth quarter results reflect an efficiency ratio of 53.2 percent, another record for the firm," Carpenter said. "At the end of 2011, our franchise employed 747 full-time employees, compared to 764 full-time employees at the end of 2014 or an increase of slightly more than 2 percent. We believe that prudent management of our expense base will be a requirement to remain a high performing franchise. That said, we remain focused on recruiting the most sought-after bankers and wealth management professionals in our markets and anticipate adding more to our ranks in 2015."

Asset quality

Nonperforming assets decreased to $27.9 million at Dec. 31, 2014, compared to $34.0 million at Sept. 30, 2014 and $33.4 million at Dec. 31, 2013. Nonperforming assets decreased to 0.61 percent of total loans and ORE at Dec. 31, 2014, compared to 0.77 percent at Sept. 30, 2014 and 0.80 percent at Dec. 31, 2013.

The allowance for loan losses represented 1.47 percent of total loans at Dec. 31, 2014, compared to 1.50 percent at Sept. 30, 2014 and 1.64 percent at Dec. 31, 2013. The ratio of the allowance for loan losses to nonperforming loans was 403.2 percent at Dec. 31, 2014, compared to 305.6 percent at Sept. 30, 2014 and 373.8 percent at Dec. 31, 2013.

Net charge-offs were $842,000 for the quarter ended Dec. 31, 2014, compared to $1.6 million for the third quarter of 2014 and $1.5 million for the quarter ended Dec. 31, 2013. Annualized net charge-offs as a percentage of average loans for the quarter ended Dec. 31, 2014 were 0.08 percent, compared to 0.36 percent for the quarter ended Dec. 31, 2013.

Provision for loan losses increased $1.2 million to $2.0 million in the fourth quarter of 2014 from $851,000 in the third quarter of 2014 due to expanding loan volumes.

·	Due to a gain on sale recognized in the fourth quarter of 2014, other real estate owned (OREO) expense decreased by $1.0 million, thus providing a benefit of $630,000 in the fourth quarter of 2014, compared to an expense of $417,000 in the third quarter of 2014.

BOARD OF DIRECTORS DECLARES DIVIDEND

On Jan. 20, 2015, Pinnacle's Board of Directors also declared a $0.12 per share cash dividend to be paid on Feb. 27, 2015 to common shareholders of record as of the close of business on Feb. 6, 2015. The amount and timing of any future dividend payments to common shareholders will be subject to the discretion of Pinnacle's Board of Directors.

"We are pleased to provide a $0.04 increase in our common dividend to shareholders this quarter," Turner said. "Despite our double-digit loan growth, since the date we initiated our common dividend we've continued to experience net increases in our capital ratios. This increase in our dividend should also bring us back to our target range of a 20 percent payout ratio over time without disrupting our prospective growth plans."

WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. (CST) on Jan. 21, 2015 to discuss fourth quarter 2014 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 began operations in a single downtown Nashville location in October 2000 and has since grown to approximately $6.0 billion in assets at Dec. 31, 2014. At Dec. 31, 2014, Pinnacle is the second-largest bank holding company headquartered in Tennessee, with 29 offices in eight Middle Tennessee counties and five offices in Knoxville. Additionally, Great Place to Work^®named Pinnacle one of the best workplaces in the United States on its 2014 Best Small & Medium Workplaces list published in FORTUNE magazine. The American Banker also recognized Pinnacle as the second best bank to work for in the country.

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

###

Certain of the statements in this release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," "anticipate," "goal," "objective," "intend," "plan," "believe," "should," "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. All forward-looking statements are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Pinnacle Financial to differ materially from any results expressed or implied by such forward-looking statements. Such risks include, without limitation, (i) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (ii) continuation of the historically low short-term interest rate environment; (iii) the inability of Pinnacle Financial to maintain the historical growth of its 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) increased competition with other financial institutions; (vii) greater than anticipated adverse conditions in the national or local economies including the Nashville-Davidson-Murfreesboro-Franklin MSA and the Knoxville MSA, particularly in commercial and residential real estate markets; (viii) rapid fluctuations or unanticipated changes in interest rates on loans or deposits; (ix) the results of regulatory examinations; (x) the ability to retain large, uninsured deposits; (xi) the development of any new market other than Nashville or Knoxville; (xii) a merger or acquisition; (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 intangible assets; (xv) reduced ability to attract additional financial advisors (or failure of such advisors to cause their clients to switch to Pinnacle Financial) or otherwise to attract customers from other financial institutions; (xvi) further deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xvii) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital maintenance levels; (xviii) risks associated with litigation, including the applicability of insurance coverage; (xix) approval of the declaration of any dividend by Pinnacle Financial's board of directors, (xx) the vulnerability of our network and online banking portals 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 costs as a result of increased regulatory oversight and the development of additional banking products for our corporate and consumer clients, and (xxii) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy, including implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. A more detailed description of these and other risks is contained in Pinnacle Financial's most recent annual report on Form 10-K filed with the Securities and Exchange Commission on February 25, 2014 and Pinnacle Financial's most recent quarterly report on Form 10-Q filed with the Securities and Exchange Commission on November 7, 2014. Many of such factors are beyond Pinnacle Financial's ability to control or predict, and readers are cautioned not to put undue reliance on such forward-looking statements. Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this report, whether as a result of new information, future events or otherwise.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS – UNAUDITED

	December 31, 2014			September 30, 2014			December 31, 2013
ASSETS
Cash and noninterest-bearing due from banks	$	48,741,692		$	64,743,501		$	79,785,004
Interest-bearing due from banks		134,176,054			148,068,613			124,509,486
Federal funds sold and other		4,989,764			4,757,438			4,644,247
Cash and cash equivalents		187,907,510			217,569,552			208,938,737

Securities available-for-sale, at fair value		732,054,785			714,920,906			693,456,314
Securities held-to-maturity (fair value of $38,788,870, $38,112,282 and
$38,817,467 at December 31, 2014, September 30, 2014 and
December 31, 2013, respectively)		38,675,527			38,106,986			39,795,649
Mortgage loans held-for-sale		14,038,914			19,130,001			12,850,339

Loans		4,590,026,505			4,421,250,676			4,144,493,486
Less allowance for loan losses		(67,358,639	)		(66,159,575	)		(67,969,693	)
Loans, net		4,522,667,866			4,355,091,101			4,076,523,793

Premises and equipment, net		71,576,016			71,551,257			72,649,574
Other investments		38,062,134			33,599,454			33,226,195
Accrued interest receivable		16,988,407			16,949,949			15,406,389
Goodwill		243,529,010			243,533,067			243,651,006
Core deposit and other intangible assets		2,893,072			3,129,236			3,840,750
Other real estate owned		11,186,414			12,329,278			15,226,136
Other assets		138,668,142			139,792,704			148,210,975
Total assets	$	6,018,247,797		$	5,865,703,491		$	5,563,775,857

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	1,321,053,083		$	1,357,934,212		$	1,167,414,487
Interest-bearing		1,005,450,690			860,781,126			884,294,802
Savings and money market accounts		2,024,957,383			1,983,237,139			1,962,714,398
Time		431,143,756			460,378,271			519,049,037
Total deposits		4,782,604,912			4,662,330,748			4,533,472,724
Securities sold under agreements to repurchase		93,994,730			64,772,511			70,465,326
Federal Home Loan Bank advances		195,476,384			215,523,517			90,637,328
Subordinated debt and other borrowings		96,158,292			96,783,292			98,658,292
Accrued interest payable		631,682			622,908			792,703
Other liabilities		46,688,416			43,736,364			46,041,823
Total liabilities		5,215,554,416			5,083,769,340			4,840,068,196

Stockholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized;
no shares issued and outstanding		-			-			-
Common stock, par value $1.00; 90,000,000 shares authorized;
35,732,483 shares, 35,654,541 shares, and 35,221,941 shares
issued and outstanding at December 31, 2014, September 30, 2014
and December 31, 2013, respectively		35,732,483			35,654,541			35,221,941
Additional paid-in capital		561,431,449			558,070,636			550,212,135
Retained earnings		201,371,081			185,496,234			142,298,199
Accumulated other comprehensive income (loss), net of taxes		4,158,368			2,712,740			(4,024,614	)
Stockholders' equity		802,693,381			781,934,151			723,707,661
Total liabilities and stockholders' equity	$	6,018,247,797		$	5,865,703,491		$	5,563,775,857

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED

	Three Months Ended							Year Ended
	December 31,			September 30,		December 31,		December 31,
	2014			2014		2013		2014		2013
Interest income:
Loans, including fees	$	48,352,675		$	47,510,761	$	42,811,184	$	184,648,800	$	169,252,739
Securities
Taxable		3,409,318			3,469,311		3,644,318		14,227,172		14,504,464
Tax-exempt		1,472,826			1,533,029		1,636,905		6,167,264		6,378,345
Federal funds sold and other		298,391			268,455		312,119		1,126,726		1,146,867
Total interest income		53,533,210			52,781,556		48,404,526		206,169,962		191,282,415

Interest expense:
Deposits		2,441,502			2,435,426		2,644,630		9,953,930		11,721,387
Securities sold under agreements to repurchase		40,077			38,702		34,535		140,623		238,775
Federal Home Loan Bank advances and other borrowings		738,359			770,367		756,896		3,090,860		3,423,617
Total interest expense		3,219,938			3,244,495		3,436,061		13,185,413		15,383,779
Net interest income		50,313,272			49,537,061		44,968,465		192,984,549		175,898,636
Provision for loan losses		2,041,480			851,194		2,225,114		3,634,660		7,856,522
Net interest income after provision for loan losses		48,271,792			48,685,867		42,743,351		189,349,889		168,042,114

Noninterest income:
Service charges on deposit accounts		3,038,045			2,912,617		2,739,076		11,707,274		10,557,528
Investment services		2,737,308			2,353,118		2,394,735		9,382,670		8,038,425
Insurance sales commissions		1,045,748			1,037,043		1,014,720		4,612,583		4,537,150
Gains on mortgage loans sold, net		1,373,920			1,352,976		1,113,000		5,630,371		6,243,411
Investment gains (losses) on sales, net		-			29,221		-		29,221		(1,466,475	)
Trust fees		1,274,159			1,109,278		991,162		4,601,036		3,747,241
Other noninterest income		4,915,039			4,094,200		4,235,528		16,639,323		15,446,298
Total noninterest income		14,384,219			12,888,453		12,488,221		52,602,478		47,103,578

Noninterest expense:
Salaries and employee benefits		23,075,475			21,721,663		21,494,178		88,319,567		82,646,967
Equipment and occupancy		5,983,877			6,477,076		5,543,380		24,087,335		21,273,454
Other real estate expense		(630,066	)		417,197		302,267		664,289		3,113,046
Marketing and other business development		1,208,253			945,805		1,140,233		4,127,949		3,638,941
Postage and supplies		717,323			569,707		559,362		2,391,838		2,249,950
Amortization of intangibles		236,164			236,163		246,676		947,678		1,262,524
Other noninterest expense		3,801,319			3,991,944		3,350,488		15,761,027		15,076,332
Total noninterest expense		34,392,345			34,359,555		32,636,584		136,299,683		129,261,214
Income before income taxes		28,263,666			27,214,765		22,594,988		105,652,684		85,884,478
Income tax expense		9,526,428			9,017,943		7,274,394		35,181,517		28,158,277
Net income	$	18,737,238		$	18,196,822	$	15,320,594	$	70,471,167	$	57,726,201

Per share information:
Basic net income per common share	$	0.54		$	0.52	$	0.45	$	2.03	$	1.69
Diluted net income per common share	$	0.53		$	0.52	$	0.44	$	2.01	$	1.67

Weighted average shares outstanding:
Basic		34,827,999			34,762,206		34,355,691		34,723,335		34,200,770
Diluted		35,292,319			35,155,224		34,765,424		35,126,890		34,509,261

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED

(dollars in thousands)	December			September			June			March			December			September
(dollars in thousands)	2014			2014			2014			2014			2013			2013

Balance sheet data, at quarter end:
Commercial real estate - mortgage loans	$	1,544,091			1,478,869			1,457,335			1,456,172			1,383,435			1,326,838
Consumer real estate - mortgage loans		721,158			706,801			698,528			703,592			695,616			687,259
Construction and land development loans		322,466			322,090			292,875			294,055			316,191			319,973
Commercial and industrial loans		1,784,729			1,724,086			1,697,634			1,568,937			1,605,547			1,513,632
Consumer and other		217,583			189,405			169,190			158,931			143,704			121,600
Total loans		4,590,027			4,421,251			4,315,562			4,181,687			4,144,493			3,969,302
Allowance for loan losses		(67,359	)		(66,160	)		(66,888	)		(67,524	)		(67,970	)		(67,280	)
Securities		770,730			753,028			782,066			774,134			733,252			743,885
Total assets		6,018,248			5,865,703			5,788,792			5,600,933			5,563,776			5,391,201
Noninterest-bearing deposits		1,321,053			1,357,934			1,324,358			1,180,202			1,167,414			1,138,421
Total deposits		4,782,605			4,662,331			4,651,513			4,500,577			4,533,473			4,333,543
Securities sold under agreements to repurchase		93,995			64,773			62,273			68,093			70,465			84,032
FHLB advances		195,476			215,524			170,556			150,604			90,637			115,671
Subordinated debt and other borrowings		96,158			96,783			97,408			98,033			98,658			99,283
Total stockholders' equity		802,693			781,934			764,382			742,497			723,708			712,216

Balance sheet data, quarterly averages:
Total loans	$	4,436,411			4,358,473			4,251,900			4,130,289			3,981,214			3,932,218
Securities		760,328			767,895			782,436			748,539			731,651			739,625
Total earning assets		5,382,479			5,264,591			5,187,589			5,023,692			4,903,233			4,825,552
Total assets		5,855,421			5,752,776			5,673,615			5,514,031			5,388,371			5,313,003
Noninterest-bearing deposits		1,373,745			1,317,091			1,202,740			1,128,743			1,179,340			1,100,532
Total deposits		4,758,402			4,655,047			4,518,963			4,509,493			4,407,806			4,198,779
Securities sold under agreements to repurchase		82,970			66,429			59,888			62,500			85,096			110,123
FHLB advances		95,221			135,920			224,432			83,787			42,012			181,392
Subordinated debt and other borrowings		96,722			100,404			99,015			98,651			100,030			100,995
Total stockholders' equity		796,338			774,032			757,089			740,743			722,919			705,275

Statement of operations data, for the three months ended:
Interest income	$	53,533			52,782			50,564			49,291			48,405			48,177
Interest expense		3,220			3,245			3,338			3,383			3,436			3,604
Net interest income		50,313			49,537			47,226			45,908			44,969			44,573
Provision for loan losses		2,041			851			254			488			2,225			685
Net interest income after provision for loan losses		48,272			48,686			46,972			45,420			42,744			43,888
Noninterest income		14,384			12,888			12,598			12,732			12,488			11,387
Noninterest expense		34,391			34,360			33,902			33,646			32,637			33,323
Income before taxes		28,264			27,215			25,668			24,506			22,596			21,952
Income tax expense		9,527			9,018			8,498			8,140			7,274			7,305
Net income	$	18,737			18,197			17,170			16,367			15,321			14,647

Profitability and other ratios:
Return on avg. assets (1)		1.27	%		1.25	%		1.21	%		1.20	%		1.13	%		1.09	%
Return on avg. equity (1)		9.33	%		9.33	%		9.10	%		8.96	%		8.41	%		8.24	%
Return on avg. tangible common equity (1)		13.52	%		13.69	%		13.50	%		13.45	%		12.79	%		12.71	%
Dividend payout ratio (18)		16.67	%		17.58	%		18.29	%		19.16	%		20.38	%		-
Net interest margin (1) (2)		3.76	%		3.79	%		3.71	%		3.76	%		3.70	%		3.72	%
Noninterest income to total revenue (3)		22.23	%		20.65	%		21.06	%		21.72	%		21.73	%		20.35	%
Noninterest income to avg. assets (1)		0.97	%		0.89	%		0.89	%		0.94	%		0.92	%		0.85	%
Noninterest exp. to avg. assets (1)		2.33	%		2.37	%		2.40	%		2.47	%		2.40	%		2.49	%
Noninterest expense (excluding ORE and FHLB
restructuring charges) to avg. assets (1)		2.37	%		2.34	%		2.38	%		2.43	%		2.38	%		2.44	%
Efficiency ratio (4)		53.16	%		55.04	%		56.67	%		57.38	%		56.80	%		59.55	%
Avg. loans to average deposits		93.23	%		93.63	%		94.09	%		91.59	%		90.32	%		93.65	%
Securities to total assets		12.81	%		12.84	%		13.51	%		13.82	%		13.18	%		13.80	%



This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED

(dollars in thousands)	Three months ended							Three months ended
(dollars in thousands)	December 31, 2014							December 31, 2013
	Average Balances		Interest		Rates/ Yields			Average Balances		Interest		Rates/ Yields
Interest-earning assets
Loans⁽¹⁾	$	4,436,411	$	48,353		4.34	%	$	3,981,214	$	42,811		4.28	%
Securities
Taxable		594,681		3,409		2.27	%		552,960		3,644		2.61	%
Tax-exempt⁽²⁾		165,647		1,473		4.71	%		178,691		1,637		4.85	%
Federal funds sold and other		185,740		298		0.75	%		190,368		313		0.76	%
Total interest-earning assets		5,382,479	$	53,533		4.00	%		4,903,233	$	48,405		3.98	%
Nonearning assets
Intangible assets		246,571							247,706
Other nonearning assets		226,371							237,432
Total assets	$	5,855,421						$	5,388,371

Interest-bearing liabilities
Interest-bearing deposits:
Interest checking	$	901,774	$	380		0.17	%	$	812,323	$	386		0.19	%
Savings and money market		2,037,737		1,466		0.29	%		1,883,788		1,420		0.30	%
Time		445,146		596		0.53	%		532,355		839		0.63	%
Total interest-bearing deposits		3,384,657		2,442		0.29	%		3,228,466		2,645		0.32	%
Securities sold under agreements to repurchase		82,970		40		0.19	%		85,096		35		0.16	%
Federal Home Loan Bank advances		95,221		133		0.56	%		42,012		103		0.97	%
Subordinated debt and other borrowings		96,722		605		2.48	%		100,030		653		2.60	%
Total interest-bearing liabilities		3,659,570		3,220		0.35	%		3,455,604		3,436		0.39	%
Noninterest-bearing deposits		1,373,745		-		-			1,179,340		-		-
Total deposits and interest-bearing liabilities		5,033,315	$	3,220		0.25	%		4,634,944	$	3,436		0.29	%
Other liabilities		25,768							30,508
Stockholders' equity		796,338							722,919
Total liabilities and stockholders' equity	$	5,855,421						$	5,388,371
Net interest income			$	50,313						$	44,969
Net interest spread ⁽³⁾						3.65	%						3.58	%
Net interest margin⁽⁴⁾						3.76	%						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.
(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, 2014 would have been 3.74% compared to a net interest spread of 3.68% for the quarter ended December 31, 2013.
(4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.


This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED

(dollars in thousands)	Year Ended							Year Ended
(dollars in thousands)	December 31, 2014							December 31, 2013
	Average Balances		Interest		Rates/ Yields			Average Balances		Interest		Rates/ Yields
Interest-earning assets
Loans⁽¹⁾	$	4,295,283	$	184,649		4.31	%	$	3,861,166	$	169,253		4.40	%
Securities
Taxable		594,223		14,227		2.39	%		559,702		14,504		2.59	%
Tax-exempt⁽²⁾		170,617		6,167		4.83	%		173,202		6,378		4.91	%
Federal funds sold and other		155,585		1,127		0.86	%		144,948		1,147		0.93	%
Total interest-earning assets		5,215,708	$	206,170		4.01	%		4,739,018	$	191,282		4.10	%
Nonearning assets
Intangible assets		246,956							248,291
Other nonearning assets		237,383							240,018
Total assets	$	5,700,047						$	5,227,327

Interest-bearing liabilities
Interest-bearing deposits:
Interest checking	$	901,442	$	1,566		0.17	%	$	790,365	$	1,928		0.24	%
Savings and money market		1,975,517		5,711		0.29	%		1,714,154		5,795		0.34	%
Time		477,902		2,677		0.56	%		564,766		3,998		0.71	%
Total interest-bearing deposits		3,354,861		9,954		0.30	%		3,069,285		11,721		0.38	%
Securities sold under agreements to repurchase		67,999		141		0.21	%		113,742		239		0.21	%
Federal Home Loan Bank advances		134,874		594		0.44	%		153,912		690		0.45	%
Subordinated debt and other borrowings		98,698		2,496		2.53	%		102,571		2,733		2.67	%
Total interest-bearing liabilities		3,656,432		13,185		0.36	%		3,439,510		15,383		0.45	%
Noninterest-bearing deposits		1,256,420		-		-			1,062,089		-		-
Total deposits and interest-bearing liabilities		4,912,852	$	13,185		0.27	%		4,501,599	$	15,383		0.34	%
Other liabilities		19,971							21,631
Stockholders' equity		767,224							704,097
Total liabilities and stockholders' equity	$	5,700,047						$	5,227,327
Net interest income			$	192,985						$	175,899
Net interest spread ⁽³⁾						3.65	%						3.65	%
Net interest margin⁽⁴⁾						3.75	%						3.77	%



(1) Average balances of nonperforming loans are included in the above amounts.
(2) Yields computed on tax-exempt instruments on a tax equivalent basis.
(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, 2014 would have been 3.74% compared to a net interest spread of 3.75% for the year ended December 31, 2013.
(4) Net interest margin is the result of net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED

(dollars in thousands)	December			September			June			March			December			September
(dollars in thousands)	2014			2014			2014			2014			2013			2013

Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans	$	16,706			21,652			15,678			15,606			18,183			19,989
Other real estate (ORE)		11,186			12,329			12,946			15,038			15,226			15,522
Total nonperforming assets	$	27,892			33,981			28,624			30,644			33,409			35,511
Past due loans over 90 days and still
accruing interest	$	322			83			649			7,944			3,057			-
Troubled debt restructurings (5)	$	8,410			7,606			7,552			15,108			19,647			19,661
Net loan charge-offs	$	842			1,580			890			934			1,535			2,100
Allowance for loan losses to nonaccrual loans		403.2	%		305.6	%		426.6	%		432.7	%		373.8	%		336.6	%
As a percentage of total loans:
Past due accruing loans over 30 days		0.40	%		0.32	%		0.45	%		0.43	%		0.39	%		0.33	%
Potential problem loans (6)		1.81	%		1.98	%		1.79	%		2.01	%		1.51	%		1.80	%
Allowance for loan losses		1.47	%		1.50	%		1.55	%		1.61	%		1.64	%		1.70	%
Nonperforming assets to total loans and ORE		0.61	%		0.77	%		0.66	%		0.73	%		0.80	%		0.89	%
Nonperforming assets to total assets		0.46	%		0.58	%		0.49	%		0.55	%		0.60	%		0.66	%
Classified asset ratio (Pinnacle Bank) (8)		18.1	%		20.0	%		18.1	%		21.2	%		18.5	%		20.6	%
Annualized net loan charge-offs year-to-date
to avg. loans (7)		0.10	%		0.11	%		0.09	%		0.09	%		0.24	%		0.27	%
Wtd. avg. commercial loan internal risk ratings (6)		4.4			4.5			4.5			4.5			4.5			4.5

Interest rates and yields:
Loans		4.34	%		4.34	%		4.27	%		4.30	%		4.28	%		4.33	%
Securities		2.81	%		2.85	%		2.93	%		3.17	%		3.16	%		3.04	%
Total earning assets		4.00	%		4.03	%		3.97	%		4.04	%		3.98	%		4.02	%
Total deposits, including non-interest bearing		0.20	%		0.21	%		0.22	%		0.23	%		0.24	%		0.26	%
Securities sold under agreements to repurchase		0.19	%		0.23	%		0.21	%		0.20	%		0.16	%		0.20	%
FHLB advances		0.56	%		0.44	%		0.33	%		0.59	%		0.97	%		0.38	%
Subordinated debt and other borrowings		2.48	%		2.45	%		2.58	%		2.61	%		2.60	%		2.62	%
Total deposits and interest-bearing liabilities		0.25	%		0.26	%		0.27	%		0.29	%		0.29	%		0.31	%

Pinnacle Financial Partners capital ratios (8):
Stockholders' equity to total assets		13.3	%		13.3	%		13.2	%		13.3	%		13.0	%		13.2	%
Leverage		11.3	%		11.2	%		11.0	%		11.0	%		10.9	%		10.8	%
Tier one risk-based		12.1	%		12.2	%		12.1	%		12.2	%		11.8	%		12.0	%
Total risk-based		13.4	%		13.4	%		13.4	%		13.5	%		13.0	%		13.2	%
Tier one common equity to risk-weighted assets		10.6	%		10.6	%		10.5	%		10.5	%		10.1	%		10.2	%
Tangible common equity to tangible assets		9.6	%		9.5	%		9.3	%		9.3	%		9.0	%		9.0	%
Pinnacle Bank ratios:
Leverage		10.6	%		10.6	%		10.5	%		10.5	%		10.5	%		10.5	%
Tier one risk-based		11.4	%		11.5	%		11.5	%		11.7	%		11.3	%		11.6	%
Total risk-based		12.6	%		12.8	%		12.8	%		12.9	%		12.6	%		12.9	%

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED

(dollars in thousands, except per share data)	December			September			June			March			December			September
(dollars in thousands, except per share data)	2014			2014			2014			2014			2013			2013

Per share data:
Earnings – basic	$	0.54			0.52			0.49			0.47			0.45			0.43
Earnings – diluted	$	0.53			0.52			0.49			0.47			0.44			0.42
Common dividends per share	$	0.08			0.08			0.08			0.08			0.08			-
Book value per common share at quarter end (9)	$	22.46			21.93			21.47			20.88			20.55			20.27
Tangible common equity per common share	$	15.62			15.02			14.53			13.93			13.52			13.22

Weighted avg. common shares – basic		34,827,999			34,762,206			34,697,888			34,602,337			34,355,691			34,282,899
Weighted avg. common shares – diluted		35,292,319			35,155,224			35,081,702			34,966,600			34,765,424			34,606,567
Common shares outstanding		35,732,483			35,654,541			35,601,495			35,567,268			35,221,941			35,133,733

Investor information:
Closing sales price	$	39.54			36.10			39.48			37.49			32.53			29.81
High closing sales price during quarter	$	39.95			39.75			39.48			38.64			33.25			29.99
Low closing sales price during quarter	$	34.65			35.21			33.46			31.02			29.67			26.56

Other information:
Gains on mortgage loans sold:
Mortgage loan sales:
Gross loans sold	$	94,816			96,050			83,421			61,290			70,194			105,817
Gross fees (10)	$	2,797			2,256			2,461			1,780			1,729			2,294
Gross fees as a percentage of loans originated		2.95	%		2.35	%		2.95	%		2.90	%		2.46	%		2.17	%
Net gain on mortgage loans sold	$	1,374			1,353			1,669			1,235			1,113			1,326
Investment gains (losses) on sales, net (17)	$	-			29			-			-			-			(1,441	)
Brokerage account assets, at quarter-end (11)	$	1,695,238			1,658,237			1,680,619			1,611,232			1,560,349			1,445,461
Trust account managed assets, at quarter-end	$	764,802			720,071			687,772			613,440			605,324			576,190
Core deposits (12)	$	4,381,177			4,260,627			4,245,745			4,087,477			4,102,032			3,903,000
Core deposits to total funding (12)		84.8	%		84.6	%		85.2	%		84.8	%		85.5	%		84.3	%
Risk-weighted assets	$	5,233,329			5,049,592			4,924,884			4,730,907			4,803,942			4,557,124
Total assets per full-time equivalent employee	$	7,877			7,744			7,734			7,528			7,408			7,305
Annualized revenues per full-time equivalent employee	$	336.0			327.0			320.6			319.7			303.5			300.8
Annualized expenses per full-time equivalent employee	$	178.6			180.0			181.7			183.4			172.4			179.1
Number of employees (full-time equivalent)		764.0			757.5			748.5			744.0			751.0			738.0
Associate retention rate (13)		93.3	%		93.5	%		93.8	%		95.6	%		94.4	%		93.9	%

Selected economic information (in thousands) (14):
Nashville MSA nonfarm employment - November 2014		838.4			839.8			829.8			827.1			817.3			815.1
Knoxville MSA nonfarm employment - November 2014		343.7			342.4			342.2			338.0			334.2			335.6
Nashville MSA unemployment - November 2014		5.5	%		5.8	%		5.6	%		5.4	%		5.9	%		6.5	%
Knoxville MSA unemployment - November 2014		5.8	%		6.1	%		5.9	%		5.8	%		6.3	%		7.0	%
Nashville residential median home price - December 2014	$	213.5			211.4			222.0			195.0			198.8			197.9
Nashville inventory of residential homes for sale - December 2014 (16)		7.6			9.9			10.6			9.4			8.2			10.2

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED

	December			September			June			March			December			September
(dollars in thousands, except per share data)	2014			2014			2014			2014			2013			2013

Tangible assets:
Total assets	$	6,018,248			5,865,703			5,788,792			5,600,933			5,563,776			5,391,201
Less: Goodwill		(243,529	)		(243,533	)		(243,550	)		(243,568	)		(243,651	)		(243,808	)
Core deposit and other intangible assets		(2,893	)		(3,129	)		(3,365	)		(3,603	)		(3,841	)		(4,087	)
Net tangible assets	$	5,771,827			5,619,041			5,541,877			5,353,762			5,316,284			5,143,306

Tangible equity:
Total stockholders' equity	$	802,693			781,934			764,382			742,497			723,708			712,216
Less: Goodwill		(243,529	)		(243,533	)		(243,550	)		(243,568	)		(243,651	)		(243,808	)
Core deposit and other intangible assets		(2,893	)		(3,129	)		(3,365	)		(3,603	)		(3,841	)		(4,087	)
Net tangible common equity	$	556,271			535,272			517,467			495,326			476,216			464,321

Ratio of tangible common equity to tangible assets		9.64	%		9.53	%		9.34	%		9.25	%		8.96	%		9.03	%


Average tangible equity:
Average stockholders' equity	$	796,338			774,032			757,089			740,743			722,919			705,275
Less: Average goodwill		(243,531	)		(243,544	)		(243,559	)		(243,610	)		(243,729	)		(243,854	)
Core deposit and other intangible assets		(3,040	)		(3,278	)		(3,484	)		(3,722	)		(3,964	)		(4,211	)
Net average tangible common equity	$	549,767			527,210			510,046			493,411			475,226			457,210

Return on average tangible common equity (1)		13.52	%		13.69	%		13.50	%		13.45	%		12.79	%		12.71	%

	For the three months ended
		December			September			June			March			December			September
		2014			2014			2014			2014			2013			2013

Net interest income	$	50,313			49,537			47,226			45,908			44,969			44,573

Noninterest income		14,384			12,888			12,598			12,732			12,488			11,387
Less: Investment (gains) losses on sales, net		-			(29	)		-			-			-			1,441
Noninterest income excluding investment
(gains) losses on sales, net		14,384			12,859			12,598			12,732			12,488			12,828
Total revenues excluding the impact of investment
(gains) losses on sales, net		64,697			62,396			59,824			58,644			57,457			57,401

Noninterest expense		34,391			34,360			33,902			33,646			32,637			33,323
Less: Other real estate expense		(630	)		417			226			651			302			699
Noninterest expense excluding the impact of
other real estate expense		35,021			33,943			33,676			32,995			32,335			32,624

Adjusted pre-tax pre-provision income ⁽¹⁵⁾	$	29,676			28,453			26,148			25,645			25,122			24,777


Efficiency Ratio⁽⁴⁾		53.2	%		55.0	%		56.7	%		57.4	%		56.8	%		59.5	%


Total average assets	$	5,855,421			5,752,776			5,673,615			5,514,031			5,388,371			5,313,003

Noninterest expense (excluding ORE expense) to avg. assets ⁽¹⁾		2.37	%		2.34	%		2.38	%		2.43	%		2.38	%		2.44	%


This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED

1. Ratios are presented on an annualized basis.

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

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

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

5. Troubled debt restructurings include loans where the company, as a result of the borrower's financial difficulties, has granted a credit concession to the borrower (i.e., interest only payments for a significant period of time, extending the maturity of the loan, etc.). All of these loans continue to accrue interest at the contractual rate.

6. Average risk ratings are based on an internal loan review system which assigns a numeric value of 1 to 10 to all loans to commercial entities based on their underlying risk characteristics as of the end of each quarter. A "1" risk rating is assigned to credits that exhibit Excellent risk characteristics, "2" exhibit Very Good risk characteristics, "3" Good, "4" Satisfactory, "5" Acceptable or Average, "6" Watch List, "7" Criticized, "8" Classified or Substandard, "9" Doubtful and "10" Loss (which are charged-off immediately). Additionally, loans rated "8" or worse that are not nonperforming or restructured loans are considered potential problem loans. Generally, consumer loans are not subjected to internal risk ratings.

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

8. Capital ratios are defined as follows:

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

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

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

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

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

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

Tier one common equity to risk weighted assets - Tier 1 capital (pursuant to risk-based capital guidelines) less the amount of any preferred stock or subordinated indebtedness that is considered

as a component of tier 1 capital as a percentage of total risk-weighted assets.

9. Book value per share computed by dividing total stockholders' equity less preferred stock and common stock warrants by common shares outstanding.

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

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

12. Core deposits include all transaction deposit accounts, money market and savings accounts and all certificates of deposit issued in a denomination of less than $250,000.

The ratio noted above represents total core deposits divided by total funding, which includes total deposits, FHLB advances, securities sold under agreements to repurchase, subordinated indebtedness and all other interest-bearing liabilities.

13. Associate retention rate is computed by dividing the number of associates employed at quarter-end less the number of associates that have resigned in the last 12 months by the number of associates employed at quarter-end.

14. Employment and unemployment data is from BERC- MTSU & Bureau of Labor Statistics. Labor force data is seasonally adjusted. The most recent quarter data presented is as of the most recent month that data is available as of the release date. Historical data is subject to update by the BERC- MTSU & Bureau of Labor Statistics. Historical data is presented based on the most recently reported data available by the BERC- MTSU & Bureau of Labor Statistics. The Nashville home data is from the Greater Nashville Association of Realtors.

15. Adjusted pre-tax, pre-provision income excludes the impact of investment gains and losses on sales and impairments, net and non-credit related loan losses as well as other real estate owned expenses and FHLB restructuring charges.

16. Represents month's supply of homes currently listed with MLS based on current sales activity in the Nashville MSA.

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

18. The dividend payout ratio is calculated as the sum of the annualized dividend rate divided by the trailing 12-months fully diluted earnings per share as of the dividend declaration date.

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PINNACLE FINANCIAL PARTNERS INC Reports