Pinnacle Financial Grows Quarterly Net Income Per Fully Diluted Share 143 Percent over Fourth Quarter of 2010

Fully diluted earnings per share of $0.17 in fourth quarter of 2011 includes impact of redemption of 25 percent of TARP preferred shares

NASHVILLE, Tenn.--(BUSINESS WIRE)-- Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) today reported that its net income per fully diluted common share available to common stockholders was $0.17 for the quarter ended Dec. 31, 2011, compared to net income per fully diluted common share available to common stockholders of $0.07 for the quarter ended Dec. 31, 2010, an increase of 143 percent. The Company's results for the fourth quarter of 2011 include $718,000 in additional accretion charges as a result of the Company's redemption of 25 percent of its TARP preferred shares on Dec. 28, 2011.

Net income per fully diluted common share available to common stockholders was $1.09 for the year ended Dec. 31, 2011, compared to a net loss per fully diluted common share available to common stockholders of $0.93 for the year ended Dec. 31, 2010. Fully diluted net income per share available to common stockholders for the year ended Dec. 31, 2011, was $0.64 excluding $0.45 per share related to the third quarter 2011 reversal of the valuation allowance for net deferred tax assets.

"This past year was a pivotal one for our firm as we significantly reduced the level of problem loans and expanded our core earnings," said M. Terry Turner, Pinnacle's president and chief executive officer. "As we went through the year, we made dramatic improvements in asset quality, significantly altered our funding mix to lower costs and produced meaningful growth in commercial and industrial loans as well as demand deposits. This growth reflects our continuing opportunity to capitalize on client dissatisfaction with the larger national and regional banks in our markets. We also redeemed 25 percent of our TARP preferred shares with no dilution to our common stockholders. We expect continuing improvement in core earnings and asset quality in 2012."

Building the Core Earnings Capacity of the Firm

• Loans at Dec. 31, 2011, were $3.29 billion, an increase of $50.2 million from $3.24 billion at Sept. 30, 2011, or an annualized growth rate of 6.2 percent. Commercial and industrial loans combined with owner-occupied commercial real estate loans were $1.73 billion at Dec. 31, 2011, an increase of $77.0 million from $1.65 billion at Sept. 30, 2011, an annualized growth rate of 18.7 percent and the sixth consecutive quarter of net growth.
• Average balances of noninterest bearing deposit accounts were $705.6 million in the fourth quarter of 2011, the seventh consecutive quarterly increase. Average balances increased 5.0 percent over third quarter 2011 and 22.5 percent over the same quarter last year.
• Revenue for the quarter ended Dec. 31, 2011, amounted to $49.02 million, compared to $44.72 million for the same quarter of last year, an increase of 9.6 percent.
• Net interest margin increased to 3.65 percent for the quarter ended Dec. 31, 2011, from 3.29 percent for the quarter ended Dec. 31, 2010.
• Less than five years after expanding to the Knoxville market, Pinnacle's Knoxville footprint reached $551.1 million in loans at the end of the fourth quarter 2011.

"Our adjusted pre-tax, pre-provision net income was $18.7 million in the fourth quarter of 2011, up from $16.1 million in the fourth quarter of 2010," Turner said. "During 2011, we successfully created more focus on growth with our sales associates. Our relationship managers continue to pursue established businesses in our markets as evidenced by significant growth in C&I loans during the last half of 2011. Additionally, during 2011 we recruited several experienced commercial lenders that should further bolster our ability to grow organically and move market share during 2012, a longstanding core strategy of our firm."

Aggressively Dealing with Credit Issues

• Nonperforming assets declined by $12.6 million, a linked-quarter reduction of 12.6 percent and the sixth consecutive quarterly reduction. Pinnacle resolved $32.3 million in nonperforming assets during the fourth quarter of 2011, compared to resolutions of $29.5 million during the third quarter of 2011.
  • Nonperforming loans declined by $6.8 million during the fourth quarter of 2011, a linked-quarter reduction of 12.4 percent and the seventh consecutive quarterly reduction. Nonperforming loans are down 40.8 percent from a year ago.
  • Other real estate also declined by $5.8 million during the fourth quarter of 2011, inclusive of $7.4 million in property foreclosures during the fourth quarter of 2011.
• Potential problem loans, which are classified loans that continue to accrue interest, also decreased from $228.3 million at Dec. 31, 2010, to $130.4 million at Dec. 31, 2011, a decrease of 42.9 percent. Potential problem loans are down by 59.0 percent from their peak in June 2010.
• Construction and land development loans were $274.2 million at Dec. 31, 2011, down 1.6 percent from $278.7 million at Sept. 30, 2011, and 17.2 percent from $331.3 million at Dec. 31, 2010. Residential land development loans declined from $111.6 million at Dec. 31, 2010, to $71.2 million at Dec. 31, 2011. Residential land development loans decreased 7.7 percent during the fourth quarter of 2011 from $77.1 million at Sept. 30, 2011.

"Our special assets group has been an important factor in our performance in 2011," Turner said. "These professionals have worked tirelessly over the last year to minimize our problem loans and credit losses. As a result of their efforts, dispositions of nonperforming loans and other real estate during 2011 amounted to approximately $133.6 million. As we move into 2012, we anticipate dispositions will decrease as we continue to see improvement in our credit quality and the absolute size of our troubled asset portfolio declines."

OTHER FOURTH QUARTER 2011 HIGHLIGHTS:

• Core Deposits
  • Core deposits increased by $52.9 million during the fourth quarter of 2011. Core deposits consist of all deposits other than time based deposits issued in denominations of $250,000 or greater.
  • Over the last year, the firm has successfully repositioned its deposit base so that average balances for noninterest-bearing demand, interest checking and money market accounts for the fourth quarter of 2011 increased to $2.88 billion from $2.64 billion for the fourth quarter of 2010, or 9.0 percent, while average balances for higher-cost time deposits decreased from $1.17 billion to $759 million, or 35.1 percent, during the same time period.

• Operating results
  • Net income available to common stockholders for the fourth quarter of 2011 was $5.68 million, compared to the prior year's fourth quarter net income available to common stockholders of $2.25 million. Third quarter 2011 net income available to common stockholders totaled $24.54 million, which included a $16.97 million income tax benefit that was composed primarily of the reversal of the valuation allowance of net deferred tax assets of approximately $22.48 million, reduced by estimated 2011 income tax expense.
  • Noninterest income for the quarter ended Dec. 31, 2011, was $9.7 million, compared to $10.1 million for the third quarter of 2011 and $8.7 million for the same quarter last year. Excluding the impact of net securities gains and losses, noninterest income was up 10.7 percent over the same quarter last year.
    • Wealth management revenues, which include investment services, trust services and insurance, were $3.09 million during the fourth quarter of 2011, an increase of 16.0 percent over the same period last year due primarily to additional emphasis on internal referral programs and the addition of several new associates over the past two years.
    • Net gains on mortgage loans sold increased to $1.46 million during the fourth quarter of 2011, compared to $1.30 million during the third quarter of 2011 due primarily to a significant increase in mortgage loan refinance activity.
  • Pre-tax pre-provision income for the quarter ended Dec. 31, 2011, was $14.6 million, compared to $8.3 million for the fourth quarter of 2010, an increase of 77.1 percent.
  • Income tax expense was $1.4 million for the fourth quarter of 2011, compared to no expense in the fourth quarter of 2010, resulting in an effective tax rate for the fourth quarter of 2011 of 15.7 percent. During the third quarter of 2011, the Company recorded a $22.48 million reversal of a deferred tax valuation allowance but pursuant to generally accepted accounting principles had reduced the reversal recognized in the third quarter of 2011 by estimated tax expense for the fourth quarter of 2011. The Company's effective tax rate during fourth quarter of 2011 was more than the Company had estimated primarily due to increased operating results versus its forecast. The Company anticipates an effective tax rate range of 31.0 percent to 34.0 percent during 2012.

"In addition to our fourth quarter 2011 net interest margin increasing to 3.65 percent, our net interest income increased by 9.0 percent over last year's fourth quarter," said Harold R. Carpenter, Pinnacle's chief financial officer. "We continue to reduce our cost of funds and believe that we will experience increased margins and net interest income over the next few quarters. Although we anticipate expansion in our top line revenues in 2012, it will be a challenging year. Loan pricing will remain competitive, and the economic factors affecting the broader markets will likely result in reduced yields for our investment portfolio as prepayments continue to escalate. We will likely reduce the balance of our investment portfolio in 2012, thus providing additional cash flows to support quality lending opportunities that appear to be emerging in our two primary banking markets."

• Capital
  • At Dec. 31, 2011, Pinnacle's ratio of tangible common stockholders' equity to tangible assets was 8.4 percent, compared to 7.1 percent at Dec. 31, 2010, and 8.2 percent at Sept. 30, 2011. At Dec. 31, 2011, Pinnacle's total risk-based capital ratio was 15.3 percent, compared to 15.4 percent at Dec. 31, 2010, and 15.9 percent at Sept. 30, 2011.

"We are pleased that we were able to redeem 25 percent of our outstanding TARP preferred shares with existing cash balances just before the end of 2011," Turner said. "Our strategy for redemption has been consistent for quite some time, and we intend to maintain a productive dialogue with our primary regulators to formulate a workable plan aimed at complete redemption over the next year or so with minimal dilution to our shareholders."

The Company also reported that during the fourth quarter of 2011, it had been informed that the OCC had lifted Pinnacle National Bank's individual minimum capital requirement to maintain at least an 8 percent Tier 1 leverage ratio and 12 percent total risk-based capital ratio. Regardless of that fact, Turner noted that the Company intended to maintain at least an 8 percent Tier 1 leverage ratio and at least a 12 percent total risk-based capital ratio at the bank for the foreseeable future.

• Credit quality
  • The allowance for loan losses represented 2.25 percent of total loans at Dec. 31, 2011, compared to 2.31 percent at Sept. 30, 2011, and 2.57 percent at Dec. 31, 2010.
    • Net charge-offs were $6.34 million for the quarter ended Dec. 31, 2011, compared to $7.15 million for the quarter ended Dec. 31, 2010, and $5.73 million for the third quarter of 2011.
    • Provision for loan losses expense increased from $5.17 million for the fourth quarter of 2010 to $5.44 million for the fourth quarter of 2011. Impacting fourth quarter provision expense was net loan growth of $50 million during 2011, compared to a net reduction in loans of $39 million during the same quarter in 2010. For the 12 months ended Dec. 31, 2011, provision expense was $21.8 million compared to $53.7 million last year.
  • Nonperforming assets were 2.66 percent of total loans plus other real estate at Dec. 31, 2011, compared to 3.05 percent at Sept. 30, 2011, and 4.29 percent at Dec. 31, 2010. The ratio of the allowance for loan losses to nonperforming loans increased to 154.6 percent at Dec. 31, 2011, from 137.0 percent at Sept. 30, 2011, and 102.1 percent at Dec. 31, 2010.
  • Past due loans over 30 days, excluding nonperforming loans, were 0.36 percent of total loans at Dec. 31, 2011, compared to 0.28 percent at Sept. 30, 2011, and 0.30 percent at Dec. 31, 2010.

"We are obviously pleased with the improvement in credit metrics in 2011, and we believe that we will experience continued improvement in our asset quality in 2012," Carpenter said. "At this time, we are becoming increasingly optimistic that our 2012 net charge-offs and other real estate expense will reflect meaningful improvement over 2011."

The following is a summary of the activity in various nonperforming asset and troubled debt restructuring categories for the quarter ended Dec. 31, 2011:

(in thousands)		Balances Sept. 30, 2011			Payments, Sales and Reductions				Foreclosures				Inflows			Balances Dec. 31, 2011
Troubled debt restructurings:
Residential construction and development		$	-		$	-			$	-			$	-		$	-
Commercial construction and development			-			-				-				-			-
Other			18,187			(3,150	)			-				8,379			23,416
Totals			18,187			(3,150	)			-				8,379			23,416
Nonperforming loans:
Residential construction and development			9,651			(3,140	)			(1,046	)			2,655			8,120
Commercial construction and development			13,890			(3,291	)			(4,293	)			686			6,991
Other			31,099			(12,607	)			(2,093	)			16,345			32,744
Totals			54,640			(19,038	)			(7,432	)			19,685			47,855
Other real estate:
Residential construction and development			13,601			(738	)			1,046				-			13,909
Commercial construction and development			24,943			(9,139	)			4,293				-			20,097
Other			6,956			(3,341	)			2,093				-			5,708
Totals			45,500			(13,218	)			7,432				-			39,714
Total nonperforming assets and troubled debt restructurings		$	118,327		$	(35,406	)		$	-			$	28,064		$	110,985

• Noninterest expense
  • Noninterest expense for the quarter ended Dec. 31, 2011, was $34.37 million, compared to $36.45 million in the fourth quarter of 2010, and $35.68 million in the third quarter of 2011.
  • Included in noninterest expense for the fourth quarter of 2011 was $4.19 million in other real estate expenses, compared to $7.87 million in the fourth quarter of 2010, and $5.08 million in the third quarter of 2011.

Carpenter said that compensation costs in 2011 increased by approximately $9.8 million over 2010 and that the increase was primarily attributable to the payment of annual incentive awards to participants in the firm's incentive plans. Carpenter stated that in 2010 no cash incentives were paid and thus, excluding annual cash incentives, compensation costs in 2011 would have approximated the amount in 2010. Incentive payouts for all associates other than the executive officers during 2011 are based on achievement of predetermined targets for soundness and operating results. Executive officers are not eligible for any cash incentives as long as the Company is a TARP participant.

Included in the other real estate expense for the quarter was $2.3 million of additional write downs of existing OREO balances based on updated appraisals. The firm also recorded $480,000 in losses related to the disposition of $13.2 million of other real estate properties. Excluding the impact of ORE expenses in each quarterly period, the fourth quarter of 2011 noninterest expense was approximately $30.18 million, compared to $30.60 million in the third quarter of 2011 and $28.58 million in the fourth quarter of 2010. Excluding the impact of other real estate expenses, the firm currently anticipates that first quarter 2012 noninterest expense will increase modestly over fourth quarter noninterest expenses.

WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. (CT) on Jan. 18, 2012, to discuss fourth quarter 2011 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 .

For those unable to participate in the webcast, it will be archived on the investor relations page of Pinnacle's website at for 90 days following the presentation.

Pinnacle Financial Partners provides a full range of banking, investment, mortgage and insurance products and services designed for small- to mid-sized businesses and their owners and individuals interested in a comprehensive relationship with their financial institution. Comprehensive wealth management services, such as financial planning and trust, help clients increase, protect and distribute their assets.

The firm began operations in a single downtown Nashville location in Oct. 2000 and has since grown to over $4.86 billion in assets at Dec. 31, 2011. At Dec. 31, 2011, Pinnacle is the second-largest bank holding company headquartered in Tennessee, with 29 offices in eight Middle Tennessee counties and three offices in Knoxville. The firm was also added to Standard & Poor's SmallCap 600 index in 2009.

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 grow its loan portfolio in the Nashville-Davidson-Murfreesboro-Franklin MSA and the Knoxville MSA; (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; (ix) the results of regulatory examinations; (x) the development of any new market other than Nashville or Knoxville; (xi) a merger or acquisition; (xii) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including intangible assets; (xiii) the ability to attract additional financial advisors or to attract customers from other financial institutions; (xiv) the impact of governmental restrictions on and discretionary regulatory authority over entities participating in the Capital Purchase Program, of the U.S. Department of the Treasury (the "Treasury"); (xv) further deterioration in the valuation of other real estate owned; (xvi) inability to comply with regulatory capital requirements or to secure any required regulatory approvals for capital actions, including redemption of the remaining TARP preferred shares that are outstanding; and, (xvii) 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 23, 2011 and most recent quarterly reports on Form 10-Q filed with the Securities and Exchange commission on May 5, 2011, July 29, 2011 and October 31, 2011. 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 release, whether as a result of new information, future events or otherwise.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
		December 31, 2011				December 31, 2010
ASSETS
Cash and noninterest-bearing due from banks		$	63,015,997			$	40,154,247
Interest-bearing due from banks			108,422,470				140,647,481
Federal funds sold and other			724,573				7,284,685
Short-term discount notes			-				499,768
Cash and cash equivalents			172,163,040				188,586,181
Securities available-for-sale, at fair value			894,962,246				1,014,316,831
Securities held-to-maturity (fair value of $2,369,118 and $4,411,856 at December 31, 2011 and 2010, respectively)			2,329,917				4,320,486
Mortgage loans held-for-sale			35,363,038				16,206,034
Loans			3,291,350,857				3,212,440,190
Less allowance for loan losses			(73,974,675	)			(82,575,235	)
Loans, net			3,217,376,182				3,129,864,955
Premises and equipment, net			77,127,361				82,374,228
Other investments			44,653,840				42,282,255
Accrued interest receivable			15,243,366				16,364,573
Goodwill			244,076,492				244,090,311
Core deposit and other intangible assets			7,842,267				10,705,105
Other real estate owned			39,714,415				59,608,224
Other assets			113,098,540				100,284,697
Total assets		$	4,863,950,704			$	4,909,003,880
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing		$	717,378,933			$	586,516,637
Interest-bearing			637,203,420				573,670,188
Savings and money market accounts			1,585,260,139				1,596,306,386
Time			714,496,974				1,076,564,179
Total deposits			3,654,339,466				3,833,057,390
Securities sold under agreements to repurchase			131,591,412				146,294,379
Federal Home Loan Bank advances			226,068,796				121,393,026
Subordinated debt			97,476,000				97,476,000
Accrued interest payable			2,233,330				5,197,925
Other liabilities			42,097,132				28,127,875
Total liabilities			4,153,806,136				4,231,546,595
Stockholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; 71,250 and 95,000 shares issued and outstanding at December 31, 2011 and 2010, respectively			69,096,828				90,788,682
Common stock, par value $1.00; 90,000,000 shares authorized; 34,354,960 issued and outstanding and 33,870,380 issued and outstanding at December 31, 2011 and 2010, respectively			34,354,960				33,870,380
Common stock warrants			3,348,402				3,348,402
Additional paid-in capital			536,227,537				530,829,019
Retained earnings			49,783,584				12,996,202
Accumulated other comprehensive income, net of taxes			17,333,257				5,624,600
Stockholders' equity			710,144,568				677,457,285
Total liabilities and stockholders' equity		$	4,863,950,704			$	4,909,003,880
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 OPERATIONS - UNAUDITED
		Three Months Ended							Twelve Months Ended
		December 31,							December 31,
		2011			2010				2011				2010
Interest income:
Loans, including fees		$	38,917,962		$	40,397,612			$	154,748,491			$	162,901,763
Securities
Taxable			5,179,009			6,156,080				23,971,787				30,306,189
Tax-exempt			1,800,793			1,937,747				7,394,134				7,916,596
Federal funds sold and other			548,047			587,882				2,232,423				2,223,816
Total interest income			46,445,811			49,079,321				188,346,835				203,348,364
Interest expense:
Deposits			5,718,988			11,161,716				30,588,033				49,856,815
Securities sold under agreements to repurchase			178,958			397,890				1,110,078				1,749,905
Federal Home Loan Bank advances and other borrowings			1,255,194			1,463,466				5,184,313				7,368,258
Total interest expense			7,153,140			13,023,072				36,882,424				58,974,978
Net interest income			39,292,671			36,056,249				151,464,411				144,373,386
Provision for loan losses			5,438,846			5,171,527				21,797,613				53,695,454
Net interest income after provision for loan losses			33,853,825			30,884,722				129,666,798				90,677,932
Noninterest income:
Service charges on deposit accounts			2,290,699			2,352,955				9,244,165				9,591,543
Investment services			1,402,016			1,264,038				6,246,414				5,050,105
Insurance sales commissions			943,959			906,947				3,999,153				3,864,340
Gain on mortgage loans sold, net			1,461,224			1,351,680				4,155,137				4,085,657
Net gain on sale of investment securities			133,055			-				960,763				2,623,674
Trust fees			746,257			495,308				2,999,731				2,872,490
Other noninterest income			2,749,616			2,295,083				10,334,847				8,227,237
Total noninterest income			9,726,826			8,666,011				37,940,210				36,315,046
Noninterest expense:
Salaries and employee benefits			18,962,481			15,707,984				74,424,851				64,628,991
Equipment and occupancy			4,977,335			4,987,900				19,986,976				21,077,223
Other real estate owned			4,193,073			7,874,492				17,431,926				29,210,197
Marketing and other business development			1,031,884			937,404				3,303,151				3,233,224
Postage and supplies			576,469			467,485				2,120,722				2,538,021
Amortization of intangibles			715,514			744,492				2,862,837				2,980,986
Other noninterest expense			3,917,180			5,731,763				18,976,865				23,214,670
Total noninterest expense			34,373,936			36,451,520				139,107,328				146,883,312
Income (loss) before income taxes			9,206,715			3,099,213				28,499,680				(19,890,334	)
Income tax expense (benefit)			1,446,918			(696,576	)			(15,237,687	)			4,410,158
Net Income (loss)			7,759,797			3,795,789				43,737,367				(24,300,492	)
Preferred dividends			1,004,410			1,213,889				4,606,493				4,815,972
Accretion on preferred stock discount			1,074,698			333,554				2,058,146				1,326,050
Net income (loss) available to common stockholders		$	5,680,689		$	2,248,346			$	37,072,728			$	(30,442,514	)
Per share information:
Basic net income (loss) per common share available to common stockholders		$	0.17		$	0.07			$	1.11				($0.93	)
Diluted net income (loss) per common share available to common stockholders		$	0.17		$	0.07			$	1.09				($0.93	)
Weighted average shares outstanding:
Basic			33,485,253			33,062,533				33,420,015				32,789,871
Diluted			34,127,209			33,670,890				34,060,228				32,789,871
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
		December 31, 2011									December 31, 2010
		Average Balances			Interest			Rates/ Yields			Average Balances			Interest			Rates/ Yields
Interest-earning assets:
Loans (1)		$	3,261,972		$	38,918		4.74	%		$	3,217,738		$	40,398		4.99	%
Securities
Taxable			733,871			5,179		2.80	%			788,138			6,156		3.10	%
Tax-exempt (2)			190,282			1,801		5.01	%			205,098			1,938		4.94	%
Federal funds sold and other			161,227			548		1.45	%			230,698			588		1.08	%
Total interest-earning assets			4,347,352		$	46,446		4.30	%			4,441,672		$	49,079		4.45	%
Nonearning assets
Intangible assets			252,368									255,268
Other nonearning assets			252,591									240,241
Total assets		$	4,852,311								$	4,937,181
Interest-bearing liabilities:
Interest-bearing deposits:
Interest checking		$	584,342		$	757		0.51	%		$	533,191		$	898		0.67	%
Savings and money market			1,592,704			2,624		0.65	%			1,536,169			4,687		1.21	%
Time			759,219			2,338		1.22	%			1,169,606			5,577		1.89	%
Total interest-bearing deposits			2,936,265			5,719		0.77	%			3,238,966			11,162		1.37	%
Securities sold under agreements to repurchase			141,818			179		0.50	%			194,283			398		0.81	%
Federal Home Loan Bank advances and other borrowings			209,619			566		1.07	%			121,414			796		2.60	%
Subordinated debt			97,476			689		2.80	%			97,476			667		2.72	%
Total interest-bearing liabilities			3,385,178			7,153		0.84	%			3,652,139			13,023		1.41	%
Noninterest-bearing deposits			705,580			-		-				575,606			-		-
Total deposits and interest-bearing liabilities			4,090,758		$	7,153		0.69	%			4,227,745		$	13,023		1.22	%
Other liabilities			31,931									19,460
Stockholders' equity			729,622									689,976
Total liabilities and stockholders' equity		$	4,852,311								$	4,937,181
Netinterestincome					$	39,293								$	36,056
Net interest spread (3)								3.46	%								3.04	%
Net interest margin (4)								3.65	%								3.29	%
(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, 2011 would have been 3.61% compared to a net interest spread of 3.23% for the quarter ended December 31, 2010.
(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)		Twelve months ended									Twelve months ended
		December 31, 2011									December 31, 2010
		Average Balances			Interest			Rates/ Yields			Average Balances			Interest			Rates/ Yields
Interest-earning assets:
Loans (1)		$	3,218,123		$	154,749		4.82	%		$	3,362,024		$	162,902		4.85	%
Securities
Taxable			768,063			23,972		3.12	%			780,643			30,306		3.88	%
Tax-exempt (2)			193,397			7,394		5.10	%			205,029			7,917		5.09	%
Federal funds sold and other			167,932			2,232		1.43	%			188,091			2,224		1.27	%
Total interest-earning assets			4,347,515		$	188,348		4.40	%			4,535,787		$	203,348		4.55	%
Nonearning assets
Intangible assets			253,443									256,379
Other nonearning assets			232,477									221,730
Total assets		$	4,833,435								$	5,013,896
Interest-bearing liabilities:
Interest-bearing deposits:
Interest checking		$	583,212		$	3,522		0.60	%		$	520,351		$	3,491		0.67	%
Savings and money market			1,597,965			13,773		0.86	%			1,368,659			18,310		1.34	%
Time			876,864			13,293		1.52	%			1,419,358			28,056		1.98	%
Total interest-bearing deposits			3,058,041			30,588		1.00	%			3,308,368			49,857		1.51	%
Securities sold under agreements to repurchase			161,845			1,110		0.69	%			222,179			1,750		0.79	%
Federal Home Loan Bank advances and other borrowings			136,741			2,512		1.84	%			143,372			4,044		2.82	%
Subordinated debt			98,201			2,672		2.73	%			97,476			3,324		3.41	%
Total interest-bearing liabilities			3,454,828			36,882		1.07	%			3,771,395			58,975		1.56	%
Noninterest-bearing deposits			650,602			-		-				527,673			-		-
Total deposits and interest-bearing liabilities			4,105,430		$	36,882		0.90	%			4,299,068		$	58,975		1.37	%
Other liabilities			24,752									17,842
Stockholders' equity			703,253									696,986
Total liabilities and stockholders' equity		$	4,833,435								$	5,013,896
Netinterestincome					$	151,466								$	144,373
Net interest spread (3)								3.33	%								2.99	%
Net interest margin (4)								3.55	%								3.25	%
(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-earning 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 twelve months ended December 31, 2011 would have been 3.50% compared to a net interest spread of 3.18% for the twelve months ended December 31, 2010.
(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
SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED
(dollars in thousands)		December				September			June			March			December			September
		2011				2011			2011			2011			2010			2010
Balance sheet data, at quarter end:
Commercial real estate - mortgage loans		$	1,110,962			1,087,333			1,091,283			1,102,533			1,094,615			1,103,261
Consumer real estate - mortgage loans			695,745			711,994			708,280			698,693			705,487			720,140
Construction and land development loans			274,248			278,660			282,064			300,697			331,261			359,729
Commercial and industrial loans			1,145,735			1,095,037			1,058,263			1,047,754			1,012,091			995,743
Consumer and other			64,661			68,125			67,214			67,753			68,986			73,052
Total loans			3,291,351			3,241,149			3,207,104			3,217,430			3,212,440			3,251,923
Allowance for loan losses			(73,975	)		(74,871	)		(76,971	)		(78,988	)		(82,575	)		(84,550	)
Securities			897,292			942,752			925,508			984,200			1,018,637			968,532
Total assets			4,863,951			4,868,905			4,831,333			4,820,991			4,909,004			4,961,603
Noninterest-bearing deposits			717,379			722,694			662,018			608,428			586,517			581,181
Total deposits			3,654,339			3,712,650			3,761,520			3,731,883			3,833,057			3,825,634
Securities sold under agreements to repurchase			131,591			128,954			124,514			165,132			146,294			191,392
FHLB advances and other borrowings			226,069			161,106			111,191			111,351			121,393			121,435
Subordinated debt			97,476			97,476			97,476			97,476			97,476			97,476
Total stockholders' equity			710,145			724,374			699,228			681,226			677,457			686,529
Balance sheet data, quarterly averages:
Total loans		$	3,261,972			3,207,213			3,211,591			3,191,076			3,217,738			3,295,531
Securities			924,153			939,778			972,750			1,010,344			993,236			954,869
Total earning assets			4,347,352			4,308,710			4,347,552			4,387,331			4,441,672			4,519,956
Total assets			4,852,311			4,786,485			4,826,731			4,868,745			4,937,181			5,001,373
Noninterest-bearing deposits			705,580			671,796			628,929			594,651			575,606			534,171
Total deposits			3,641,845			3,699,553			3,722,613			3,772,092			3,814,572			3,859,124
Securities sold under agreements to repurchase			141,818			145,050			175,705			185,471			194,283			210,037
FHLB advances and other borrowings			209,619			111,699			114,072			113,705			121,414			126,130
Subordinated debt			97,476			97,476			97,476			97,476			97,476			97,476
Total stockholders' equity			729,622			708,973			691,020			682,638			689,976			686,898
Statement of operations data, for the three months ended:
Interest income		$	46,446			46,888			47,789			47,224			49,079			50,650
Interest expense			7,153			8,532			9,994			11,204			13,023			14,590
Net interest income			39,293			38,356			37,795			36,020			36,056			36,060
Provision for loan losses			5,439			3,632			6,587			6,139			5,172			4,789
Net interest income after provision for loan losses			33,854			34,724			31,208			29,881			30,884			31,271
Noninterest income			9,727			10,080			9,809			8,324			8,666			8,594
Noninterest expense			34,374			35,676			34,357			34,701			36,452			37,774
Income before taxes			9,207			9,128			6,660			3,504			3,098			2,091
Income tax expense (benefit)			1,447			(16,973	)		288			-			(697	)		-
Preferred dividends and accretion			2,079			1,564			1,529			1,492			1,547			1,542
Net income available to common stockholders		$	5,681			24,537			4,843			2,011			2,248			549
Profitability and other ratios:
Return on avg. assets (1)			0.46	%		2.06	%		0.40	%		0.17	%		0.18	%		0.04	%
Return on avg. equity (1)			3.09	%		13.88	%		2.81	%		1.19	%		1.29	%		0.32	%
Net interest margin (1) (2)			3.65	%		3.60	%		3.55	%		3.40	%		3.29	%		3.23	%
Noninterest income to total revenue (3)			19.84	%		20.81	%		20.61	%		18.77	%		19.38	%		19.25	%
Noninterest income to avg. assets (1)			0.80	%		0.84	%		0.82	%		0.69	%		0.70	%		0.68	%
Noninterest exp. to avg. assets (1)			2.81	%		2.99	%		2.86	%		2.89	%		2.93	%		3.00	%
Efficiency ratio (4)			70.12	%		73.66	%		72.17	%		78.25	%		81.51	%		84.59	%
Avg. loans to average deposits			89.57	%		86.69	%		86.27	%		84.60	%		84.35	%		85.40	%
Securities to total assets			18.45	%		19.36	%		19.16	%		20.41	%		20.75	%		19.52	%
Average interest-earning assets to average interest-bearing liabilities			128.42	%		127.40	%		124.90	%		122.75	%		121.62	%		120.26	%
Brokered time deposits to total deposits (16)			0.00	%		0.00	%		0.00	%		0.00	%		0.03	%		1.80	%
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
		December				September			June			March			December			September
(dollars in thousands)		2011				2011			2011			2011			2010			2010
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans		$	47,855			54,640			59,727			76,368			80,863			103,127
Other real estate (ORE)			39,714			45,500			52,395			56,000			59,608			48,710
Total nonperforming assets		$	87,569			100,140			112,122			132,368			140,471			151,837
Past due loans over 90 days and still accruing interest		$	858			1,911			481			1,151			138			3,639
Troubled debt restructurings (5)			23,416			18,187			12,990			15,285			20,468			13,468
Net loan charge-offs		$	6,335			5,732			8,605			9,726			7,146			7,346
Allowance for loan losses to nonaccrual loans			154.6	%		137.0	%		128.9	%		103.4	%		102.1	%		82.0	%
As a percentage of total loans:
Past due accruing loans over 30 days			0.36	%		0.28	%		0.40	%		0.36	%		0.30	%		0.67	%
Potential problem loans (6)			3.96	%		4.04	%		4.62	%		5.31	%		6.95	%		8.23	%
Allowance for loan losses			2.25	%		2.31	%		2.40	%		2.46	%		2.57	%		2.60	%
Nonperforming assets to total loans and ORE			2.66	%		3.05	%		3.44	%		4.04	%		4.29	%		4.60	%
Nonperforming assets to total assets			1.80	%		2.06	%		2.32	%		2.75	%		2.86	%		3.06	%
Annualized net loan charge-offs year-to-date to avg. loans (7)			0.94	%		1.00	%		1.14	%		1.22	%		1.96	%		2.26	%
Avg. commercial loan internal risk ratings (6)			4.6			4.7			4.8			4.8			4.8			4.9
Interest rates and yields:
Loans			4.74	%		4.78	%		4.87	%		4.88	%		4.99	%		4.96	%
Securities			3.26	%		3.54	%		3.67	%		3.58	%		3.48	%		3.97	%
Total earning assets			4.30	%		4.38	%		4.47	%		4.43	%		4.45	%		4.51	%
Total deposits, including non-interest bearing			0.62	%		0.77	%		0.90	%		1.01	%		1.16	%		1.27	%
Securities sold under agreements to repurchase			0.50	%		0.56	%		0.79	%		0.83	%		0.81	%		0.82	%
FHLB advances and other borrowings			1.07	%		1.89	%		2.42	%		2.65	%		2.60	%		2.90	%
Subordinated debt			2.80	%		2.68	%		2.73	%		2.73	%		2.72	%		3.78	%
Total deposits and interest-bearing liabilities			0.69	%		0.84	%		0.98	%		1.09	%		1.22	%		1.35	%
Capital ratios (8):
Stockholders' equity to total assets			14.6	%		14.9	%		14.5	%		14.1	%		13.8	%		13.8	%
Leverage			11.4	%		11.9	%		11.2	%		11.0	%		10.7	%		10.5	%
Tier one risk-based			13.8	%		14.4	%		13.9	%		13.6	%		13.8	%		13.5	%
Total risk-based			15.3	%		15.9	%		15.5	%		15.2	%		15.4	%		15.1	%
Tangible common equity to tangible assets			8.4	%		8.2	%		7.7	%		7.4	%		7.1	%		7.2	%
Tangible common equity to risk weighted assets			10.3	%		10.3	%		9.6	%		9.1	%		9.1	%		9.3	%
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
		December				September			June			March			December			September
(dollars in thousands, except per share data)		2011				2011			2011			2011			2010			2010
Per share data:
Earnings - basic		$	0.17			0.74			0.14			0.06			0.07			0.02
Earnings - diluted		$	0.17			0.72			0.14			0.06			0.07			0.02
Book value per common share at quarter end (9)		$	18.56			18.34			17.71			17.19			17.22			17.61
Tangible common equity per common share		$	11.33			11.08			10.38			9.85			9.80			10.12
Weighted avg. common shares - basic			33,485,253			33,372,980			33,454,229			33,366,053			33,062,533			32,857,428
Weighted avg. common shares - diluted			34,127,209			33,993,914			34,095,636			34,013,810			33,670,890			33,576,963
Common shares outstanding			34,354,960			34,306,927			34,136,163			34,132,256			33,870,380			33,660,462
Investor information:
Closing sales price		$	16.15			10.94			15.56			16.54			13.58			9.19
High closing sales price during quarter		$	16.65			16.21			16.82			16.60			13.74			14.33
Low closing sales price during quarter		$	10.28			10.52			14.15			13.55			9.27			8.51
Other information:
Gains on sale of loans and loan participations sold:
Mortgage loan sales:
Gross loans sold		$	134,794			104,716			68,506			70,981			143,793			137,094
Gross fees (10)		$	2,610			2,166			1,380			1,129			2,610			2,503
Gross fees as a percentage of mortgage loans originated			1.94	%		2.07	%		2.01	%		1.59	%		1.81	%		1.83	%
Gains (losses) on sales of investment securities, net		$	133			377			610			(159	)		-			-
Brokerage account assets, at quarter-end (11)		$	1,061,249			987,908			1,101,000			1,110,000			1,038,000			966,000
Trust account assets, at quarter-end		$	632,608			607,668			663,304			730,000			693,000			647,000
Floating rate loans as a percentage of total loans (12)			32.9	%		33.3	%		34.7	%		35.4	%		36.9	%		37.9	%
Balance of commercial loan participations sold to other banks and serviced by Pinnacle, at quarter end		$	62,209			57,045			50,797			60,784			55,632			57,964
Core deposits (13)		$	3,441,547			3,388,692			3,437,595			3,382,230			3,425,571			3,224,424
Core deposits to total funding (13)			83.7	%		82.6	%		84.0	%		82.4	%		81.6	%		76.1	%
Risk-weighted assets		$	3,780,412			3,751,479			3,693,390			3,711,179			3,639,095			3,679,436
Total assets per full-time equivalent employee		$	6,511			6,580			6,538			6,373			6,384			6,349
Annualized revenues per full-time equivalent employee		$	263.2			262.5			261.3			237.7			230.4			235.0
Number of employees (full-time equivalent)			747.0			740.0			739.0			756.5			769.0			781.0
Associate retention rate (14)			92.0	%		92.6	%		89.6	%		92.4	%		93.5	%		95.2	%
Selected economic information (in thousands) (15):
Nashville MSA nonfarm employment			757.3			735.5			738.3			735.5			748.1			741.3
Knoxville MSA nonfarm employment			331.7			327.7			325.1			325.2			326.6			326.7
Nashville MSA unemployment			7.2	%		8.5	%		8.9	%		8.3	%		8.1	%		8.4	%
Knoxville MSA unemployment			6.6	%		7.9	%		8.3	%		7.5	%		7.3	%		7.8	%
Nashville residential median home price		$	168.5			171.6			167.1			166.8			171.0			178.0
Nashville inventory of residential homes for sale			10.6			13.4			14.0			13.0			13.3			14.9
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)		2011				2011				2011				2011				2010				2010
Reconciliation of certain financial measures:
Tangible assets:
Total assets		$	4,863,951			$	4,868,905			$	4,831,333			$	4,820,991			$	4,909,004			$	4,961,603
Less: Goodwill			(244,076	)			(244,082	)			(244,083	)			(244,083	)			(244,090	)			(244,097	)
Core deposit and other intangibles			(7,842	)			(8,558	)			(9,273	)			(9,989	)			(10,705	)			(11,450	)
Net tangible assets		$	4,612,033			$	4,616,265			$	4,577,976			$	4,566,919			$	4,654,208			$	4,706,056
Tangible equity:
Total stockholders' equity		$	710,145			$	724,374			$	699,228			$	681,226			$	677,457			$	686,529
Less: Goodwill			(244,076	)			(244,082	)			(244,083	)			(244,083	)			(244,090	)			(244,097	)
Core deposit and other intangibles			(7,842	)			(8,558	)			(9,273	)			(9,989	)			(10,705	)			(11,450	)
Net tangible equity			458,226				471,734				445,872				427,154				422,662				430,982
Less: Preferred stock			(69,097	)			(91,772	)			(91,422	)			(91,094	)			(90,789	)			(90,455	)
Net tangible common equity		$	389,130			$	379,962			$	354,449			$	336,060			$	331,873			$	340,527
Ratio of tangible common equity to tangible assets			8.44	%			8.23	%			7.74	%			7.36	%			7.13	%			7.24	%
		For the three months ended
		December				September				June				March				December				September
		2011				2011				2011				2011				2010				2010
Net interest income		$	39,293			$	38,356			$	37,795			$	36,020			$	36,056			$	36,060
Noninterest income			9,727				10,080				9,809				8,324				8,666				8,594
Net gains (losses) on sale of investment securities			133				377				610				(159	)			-				-
Noninterest income excluding the impact of other net gains (losses) on sale of investment securities		$	9,594			$	9,703			$	9,199			$	8,483			$	8,666			$	8,594
Noninterest expense			34,374				35,676				34,357				34,701				36,452				37,774
Other real estate owned expense			4,193				5,079				3,826				4,334				7,874				8,522
Noninterest expense excluding the impact of other real estate owned expense		$	30,181			$	30,597			$	30,532			$	30,367			$	28,578			$	29,252
Adjusted pre-tax pre-provision income (17)		$	18,706			$	17,462			$	16,463			$	14,136			$	16,145			$	15,402
Efficiency Ratio (4)			70.1	%			73.7	%			72.2	%			78.3	%			81.5	%			84.6	%
Efficiency Ratio excluding the impact of other real estate owned expense (4)			61.6	%			63.2	%			64.1	%			68.5	%			63.9	%			65.5	%
																		For the year ended, December 31,
(dollars in thousands)																		2011
Net income available to common stockholders																		$	37,073
Reversal of valuation allowance based on net deferred tax assets and liabilities																			(22,480	)
Actual 2011 current tax expense																			7,242
																		$	21,835
Diluted net income per common share available to common stockholders before impact of reversal of valuation reserve																		$	0.64
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.
Equity to total assets - End of period total stockholders' equity 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.
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 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. Floating rate loans are those loans that are eligible for repricing on a daily basis subject to changes in Pinnacle's prime lending rate or other factors.
13. 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.
14. 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.
15. Employment and unemployment data is from the US Dept. of Labor Bureau of Labor Statistics. Labor force data is not seasonally adjusted. The most recent quarter data presented is as of the most recent month that data is available as of the release date. The Nashville home data is from the Greater Nashville Association of Realtors.
16. Brokered deposits do not include reciprocal balances under the Certificate of Deposit Account Registry Service (CDARS).
17. Adjusted pre-tax, pre-provision income excludes the impact of net gains (losses) on investment security sales as well as other real estate owned expenses.

Source: Pinnacle Financial Partners, Inc.