Pinnacle Financial Partners (PNFP) 8-K Pinnacle Financial Expands Profitability In Fourth Quarter 2010

Exhibit 99.1

FOR IMMEDIATE RELEASE

MEDIA CONTACT:	Sue Atkinson, 615-320-7532
FINANCIAL CONTACT:	Harold Carpenter, 615-744-3742
WEBSITE:	www.pnfp.com

PINNACLE FINANCIAL EXPANDS
PROFITABILITY IN FOURTH QUARTER 2010

     NASHVILLE, Tenn., Jan. 18, 2011 — Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) today reported that its net income per fully diluted common share available to common stockholders was $0.07 for the quarter ended Dec. 31, 2010, compared to net loss per fully diluted common share available to common stockholders of $0.12 for the quarter ended Dec. 31, 2009. Pinnacle also reported a net loss per fully diluted common share available to common stockholders of $0.93 for the year ended Dec. 31, 2010, compared to a net loss per fully diluted common share available to common stockholders of $1.46 for the year ended Dec. 31, 2009.

     “Fiscal year 2010 has been a transition year for Pinnacle with two critical priorities - aggressively dealing with credit issues and improving the core earnings capacity of the firm,” said M. Terry Turner, Pinnacle’s president and chief executive officer. “During the fourth quarter, we saw continued meaningful progress on both priorities. We anticipate we will continue to focus on these two critical priorities in 2011 as well as directing our sales force with increasing energy to gather new small and middle market business clients in middle and east Tennessee.”

Aggressively Dealing with Credit Issues

• Reduced nonperforming loans by $22.3 million during the fourth quarter, a linked-quarter reduction of 22 percent and the third consecutive quarterly reduction.

• Reduced criticized and classified assets by $34 million during the fourth quarter, a linked-quarter reduction of 6.5 percent and the third consecutive quarter of net reductions.

• Resolved $37.3 million in nonperforming assets during the fourth quarter, with resolutions of more than $180.0 million during 2010.

• At Dec. 31, 2010, OREO constitutes approximately 42 percent of NPA’s, generally higher than peers, and is reflective of Pinnacle’s commitment to aggressively deal with problem loans. The average age of the portfolio is 141 days, which approximates the 143 days at Sept. 30, 2010.

• Nonperforming loan inflows decreased from $34.0 million in the third quarter of 2010 to $25.9 million during the fourth quarter of 2010.

• Reduced exposure to construction and land development loans from $359.7 million at Sept. 30, 2010, to $331.3 million at Dec. 31, 2010, a linked-quarter decrease of 7.9 percent.

Expanding the Core Earnings Capacity of the Firm

• Net interest margin increased to 3.29 percent for the quarter ended Dec. 31, 2010, from 3.19 percent for the quarter ended Dec. 31, 2009. Net interest margin for the quarter ended Sept. 30, 2010, was 3.23 percent. Noninterest income was $8.67 million in the fourth quarter of 2010, compared to $8.59 million in the third quarter of 2010 and $8.18 million in the fourth quarter of 2009.

• The efficiency ratio was 81.5 percent for the fourth quarter of 2010. The efficiency ratio, excluding OREO expenses, improved to 63.9 percent during the fourth quarter, the fourth consecutive quarterly improvement in “core efficiency.”

• Growth in core deposits of 4.3 percent during the fourth quarter compared to the third quarter of 2010 and 20.5 percent for the full year, is reflective of the firm’s appeal to small and mid-size business in its markets. Average balances of noninterest bearing deposit accounts were $576 million in the fourth quarter of 2010, an increase of 7.8 percent over third quarter 2010 average balances.

     “The single largest opportunity for us to improve our core earnings capacity is to expand our net interest margin. During the fourth quarter of 2010, we successfully expanded the net

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interest margin to 3.29 percent, and we expect continued margin expansion in 2011,” Turner said. “Additionally, Greenwich Research recently recognized Pinnacle for having achieved national distinction for overall client satisfaction among business clients. It is our intent to capitalize on our ‘best-in-class’ reputation to responsibly grow our loans to small business and middle market customers. In fact, during the fourth quarter, we produced net loan growth of $32.1 million in commercial and industrial loans and owner-occupied commercial real estate loans. Our ability to increase commercial loan volumes and our net interest margin should result in continued growth in core earnings over the long term.”

FOURTH QUARTER 2010 HIGHLIGHTS:

• Balance sheet

o Core deposits amounted to $3.12 billion at Dec. 31, 2010, an increase of 20.5 percent from the $2.59 billion at Dec. 31, 2009. Core deposits increased by $129 million during the fourth quarter of 2010.

o Total deposits at Dec. 31, 2010, remained steady at $3.83 billion as compared to $3.82 billion at Dec. 31, 2009, and $3.83 billion at Sept. 30, 2010.

o Loans at Dec. 31, 2010, were $3.21 billion, down from $3.25 billion at Sept. 30, 2010, and $3.56 billion at Dec. 31, 2009.

• Operating results

o Revenue for the quarter ended Dec. 31, 2010, amounted to $44.72 million, compared to $44.65 million for the third quarter of 2010 and $45.20 million for the same quarter of last year.

o Net income available to common stockholders for the fourth quarter of 2010 was $2.25 million, compared to the prior year’s fourth quarter net loss available to common stockholders of $3.98 million. Third quarter 2010 net income available to common stockholders totaled $549,000.

• Capital

o At Dec. 31, 2010, and Dec. 31, 2009, Pinnacle’s ratio of tangible common stockholders’ equity to tangible assets was 7.1 percent and 7.3 percent, respectively. Pinnacle’s tangible book value per common share was $9.80 at Dec. 31, 2010, compared to $10.71 at Dec. 31, 2009. Book value per

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	common share was $17.22 and $18.41 at Dec. 31, 2010, and Dec. 31, 2009, respectively.
o	At Dec. 31, 2010, Pinnacle Financial’s total risk-based capital ratio was 15.2 percent, compared to 14.8 percent at Dec. 31, 2009.

• Credit quality

o Net charge-offs were $7.15 million for the three months ended Dec. 31, 2010, compared to $6.72 million for the three months ended Dec. 31, 2009, and $7.35 million for the third quarter of 2010.

o The allowance for loan losses represented 2.57 percent of total loans at Dec. 31, 2010, compared to 2.60 percent at Sept. 30, 2010, and 2.58 percent at Dec. 31, 2009.

o Nonperforming loans plus other real estate were 4.29 percent of total loans plus other real estate at Dec. 31, 2010, compared to 4.60 percent at Sept. 30, 2010, and 4.29 percent at Dec. 31, 2009.

o Past due loans over 30 days, excluding nonperforming loans, were 0.30 percent of total loans at Dec. 31, 2010, compared to 0.67 percent at Sept. 30, 2010, and 0.46 percent at Dec. 31, 2009.

     The following is a summary of the activity in various nonperforming asset and restructured accruing loan categories for the quarter ended Dec. 31, 2010:

			Payments,
	Balances		Sales and								Balances
(in thousands)	Sept. 30, 2010		Reductions			Transfers			Inflows		Dec. 31, 2010
Restructured accruing loans:
Residential construction and development	$	—	$	—		$	—		$	—	$	—
Commercial construction and development		—		—			—			—		—
Other		13,468		(1,008	)		—			8,008		20,468
Totals		13,468		(1,008	)		—			8,008		20,468
Nonperforming loans:
Residential construction and development		21,513		(3,940	)		(3,792	)		2,054		15,835
Commercial construction and development		33,444		(3,368	)		(11,969	)		9,572		27,679
Other		48,170		(16,708	)		(8,372	)		14,259		37,349
Totals		103,127		(24,016	)		(24,133	)		25,885		80,863
Other real estate:
Residential construction and development		21,479		(6,556	)		3,792			—		18,715
Commercial construction and development		20,260		(5,505	)		11,969			—		26,724
Other		6,971		(1,174	)		8,372			—		14,169
Totals		48,710		(13,235	)		24,133			—		59,608
Total nonperforming assets and restructured accruing loans	$	165,305	$	(38,259	)	$	—		$	33,893	$	160,939

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REVENUE

• Net interest income for the fourth quarter of 2010 was $36.06 million, compared to $36.06 million for the third quarter 2010 and $37.03 million for the same quarter last year.

• Noninterest income for the fourth quarters of 2010 and 2009 was $8.67 million and $8.18 million, respectively.

     “We were pleased with our margin expansion during the fourth quarter,” said Harold R. Carpenter, Pinnacle’s chief financial officer. “We experienced fewer inflows of nonperforming loans, which served to reduce the amount of reversed interest for the fourth quarter. It is our intent to gradually increase loan originations and capitalize on continued deposit repricing over the next few quarters, both of which should benefit our margins and net interest income.”

     Carpenter also noted that although the pace at which loan balances decreased during the quarter was significantly less than the last few quarters, the firm’s immediate goal was to reverse the trend and begin to grow total loans at a reasonable rate within the next few quarters. Carpenter stated that the firm has initiatives aimed at intensifying its sales efforts to small business and middle market segments in middle and east Tennessee.

NONINTEREST EXPENSE & TAXES

• Noninterest expense for the quarter ended Dec. 31, 2010, was $36.45 million, compared to $37.77 million in the third quarter of 2010 and $35.45 million in the fourth quarter of 2009.

• Compensation expense was $15.71 million during the fourth quarter of 2010, compared to $16.07 million during the third quarter of 2010 and $15.04 million during the fourth quarter of 2009.

• Included in noninterest expense for the fourth quarter of 2010 was $7.87 million in other real estate expenses, compared to $8.39 million in the fourth quarter of 2009. Third quarter 2010 other real estate expense was approximately $8.52 million.

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     Excluding the impact of OREO expenses, the fourth quarter of 2010 noninterest expense was approximately $28.58 million, a slight decrease compared to $29.25 million in the third quarter of 2010. Carpenter also noted that in 2011 the firm would again see its noninterest expense run rate increase in the first quarter due to additional compensation costs related to annual merit raises and employment benefits increases including 2011 incentive award accruals.

     Other real estate expense was $7.9 million during the fourth quarter of 2010, of which $124,000 was attributable to losses on the disposition of those assets and $6.1 million was attributable to additional write downs of existing balances based on updated appraisals.

     The firm recognized an income tax benefit of $697,000, or approximately $0.02 per fully diluted share, during the quarter ended Dec. 31, 2010, due to reductions in net deferred tax asset balances for which the related valuation allowance was no longer required. Carpenter noted that the net deferred tax asset valuation allowance account was $22.5 million at Dec. 31, 2010, and that further quarterly adjustments to the account were likely based on changes to the net deferred tax asset balance. Those adjustments, whether increases or decreases, will impact future fully diluted earnings per share as well as other comprehensive income (loss) until the current valuation allowance is eliminated.

WEBCAST AND CONFERENCE CALL INFORMATION

     Pinnacle will host a webcast and conference call at 8:30 a.m. (CST) on Wednesday, Jan. 19, 2011, to discuss fourth quarter 2010 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, mortgage and insurance products and services designed for small- to mid-sized businesses and their owners, real estate professionals 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 $4.91 billion in assets at Dec. 31, 2010. In 2007, Pinnacle launched an

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expansion into Knoxville, Tennessee. At Dec. 31, 2010, Pinnacle is the second-largest bank holding company headquartered in Tennessee, with 31 offices in eight Middle Tennessee counties and three in Knoxville. The firm was also added to Standard & Poor’s SmallCap 600 index in 2009.

     Additional information concerning Pinnacle 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 factors 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 continued reduction of Pinnacle Financial’s loan balances, and conversely, the inability of Pinnacle Financial to ultimately 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) increased competition with other financial institutions; (vi) greater than anticipated deterioration or lack of sustained growth 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; (vii) rapid fluctuations or unanticipated changes in interest rates; (viii) the results of regulatory examinations; (ix) the development of any new market other than Nashville or Knoxville; (x) a merger or acquisition; (xi) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including intangible assets; (xii) the impact of governmental restrictions on entities participating in the Capital Purchase Program, of the U.S. Department of the Treasury (the “Treasury”); (xiii) further deterioration in the valuation of other real estate owned; (xiv) inability to comply with regulatory capital requirements and to secure any required regulatory approvals for capital actions; and (xv) 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; and (xvi) Pinnacle Financial recording a further valuation allowance related to its deferred tax asset. 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 26, 2010 and most recent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission on May 7, 2010, July 21, 2010, and October 20, 2010. 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.

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

	December 31, 2010			December 31, 2009
ASSETS
Cash and noninterest-bearing due from banks	$	40,154,247		$	55,651,737
Interest-bearing due from banks		140,647,481			19,338,499
Federal funds sold and other		7,284,685			41,611,838
Short-term discount notes		499,768			50,000,000
Cash and cash equivalents		188,586,181			166,602,074
Securities available-for-sale, at fair value		1,014,316,831			931,012,091
Securities held-to-maturity (fair value of $4,411,856 and $6,737,336 at December 31, 2010 and December 31, 2009, respectively)		4,320,486			6,542,496
Mortgage loans held-for-sale		16,206,034			12,440,984
Loans		3,212,440,190			3,563,381,741
Less allowance for loan losses		(82,575,235	)		(91,958,789	)
Loans, net		3,129,864,955			3,471,422,952
Premises and equipment, net		82,374,228			80,650,936
Other investments		42,282,255			40,138,660
Accrued interest receivable		16,364,573			19,083,468
Goodwill		244,090,311			244,107,086
Core deposit and other intangible assets		10,705,105			13,686,091
Other real estate owned		59,608,224			29,603,439
Other assets		100,284,697			113,520,727
Total assets	$	4,909,003,880		$	5,128,811,004
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing	$	586,516,637		$	498,087,015
Interest-bearing		573,670,188			483,273,551
Savings and money market accounts		1,596,306,386			1,198,012,445
Time		1,076,564,179			1,644,226,290
Total deposits		3,833,057,390			3,823,599,301
Securities sold under agreements to repurchase		146,294,379			275,465,096
Federal Home Loan Bank advances		121,393,026			212,654,782
Subordinated debt		97,476,000			97,476,000
Accrued interest payable		5,197,925			6,555,801
Other liabilities		28,127,875			12,039,843
Total liabilities		4,231,546,595			4,427,790,823
Stockholders’ equity:
Preferred stock, no par value; 10,000,000 shares authorized; 95,000 shares issued and outstanding at December 31, 2010 and December 31, 2009		90,788,682			89,462,633
Common stock, par value $1.00; 90,000,000 shares authorized; 33,870,380 issued and outstanding at December 31, 2010 and 33,029,719 issued and outstanding at December 31, 2009		33,870,380			33,029,719
Common stock warrants		3,348,402			3,348,402
Additional paid-in capital		530,829,019			524,366,603
Retained earnings		12,996,202			43,372,743
Accumulated other comprehensive income, net of taxes		5,624,600			7,440,081
Stockholders’ equity		677,457,285			701,020,181
Total liabilities and stockholders’ equity	$	4,909,003,880		$	5,128,811,004

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
	2010			2009			2010			2009
Interest income:
Loans, including fees	$	40,397,612		$	42,452,503		$	162,901,763		$	162,271,036
Securities:
Taxable		6,156,080			8,968,012			30,306,189			35,056,848
Tax-exempt		1,937,747			1,798,206			7,916,596			6,540,653
Federal funds sold and other		587,882			509,074			2,223,816			1,847,661
Total interest income		49,079,321			53,727,795			203,348,364			205,716,198
Interest expense:
Deposits		11,161,716			13,875,334			49,856,815			63,128,940
Securities sold under agreements to repurchase		397,890			541,710			1,749,905			1,689,073
Federal Home Loan Bank advances and other borrowings		1,463,466			2,279,986			7,368,258			10,106,922
Total interest expense		13,023,072			16,697,030			58,974,978			74,924,935
Net interest income		36,056,249			37,030,765			144,373,386			130,791,263
Provision for loan losses		5,171,527			15,694,281			53,695,454			116,758,231
Net interest income after provision for loan losses		30,884,722			21,336,484			90,677,932			14,033,032
Noninterest income:
Service charges on deposit accounts		2,352,955			2,595,064			9,591,543			10,199,838
Investment services		1,264,038			1,136,657			5,050,105			4,181,101
Insurance sales commissions		906,947			894,990			3,864,340			4,025,839
Gain on loans and loan participations sold, net		1,351,680			1,107,875			4,085,657			4,928,542
Net gain on sale of investment securities		—			—			2,623,674			6,462,241
Trust fees		495,308			705,906			2,872,490			2,590,997
Other noninterest income		2,295,083			1,736,093			8,227,237			7,263,068
Total noninterest income		8,666,011			8,176,585			36,315,046			39,651,626
Noninterest expense:
Salaries and employee benefits		15,707,984			15,037,236			64,628,991			56,709,814
Equipment and occupancy		4,987,900			5,064,152			21,077,223			18,056,080
Other real estate owned		7,874,492			8,392,630			29,210,197			14,257,005
Marketing and other business development		937,404			1,116,173			3,233,224			2,533,953
Postage and supplies		467,485			754,651			2,538,021			2,929,447
Amortization of intangibles		744,492			773,760			2,980,986			3,185,111
Other noninterest expense		5,731,763			4,309,075			23,214,670			20,906,040
Total noninterest expense		36,451,520			35,447,677			146,883,312			118,577,450
Income (loss) before income taxes		3,099,213			(5,934,608	)		(19,890,334	)		(64,892,792	)
Income tax expense (benefit)		(696,576	)		(3,467,354	)		4,410,158			(29,392,825	)
Net Income (loss)		3,795,789			(2,467,254	)		(24,300,492	)		(35,499,967	)
Preferred dividends		1,213,889			1,213,889			4,815,972			4,815,972
Accretion on preferred stock discount		333,554			294,927			1,326,050			1,113,986
Net income (loss) available to common stockholders	$	2,248,346		$	(3,976,070	)	$	(30,442,514	)	$	(41,429,925	)
Per share information:
Basic net income (loss) per common share available to common stockholders	$	0.07		$	(0.12	)	$	(0.93	)	$	(1.46	)
Diluted net income (loss) per common share available to common stockholders	$	0.07		$	(0.12	)	$	(0.93	)	$	(1.46	)
Weighted average shares outstanding:
Basic		33,062,533			32,502,101			32,789,871			28,395,618
Diluted		33,670,890			32,502,101			32,789,871			28,395,618

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

	Three months ended							Three months ended
(dollars in thousands)	December 31, 2010							December 31, 2009
	Average							Average
	Balances		Interest		Rates/ Yields			Balances		Interest		Rates/ Yields
Interest-earning assets:
Loans (1)	$	3,217,738	$	40,398		4.99	%	$	3,580,790	$	42,453		4.71	%
Securities:
Taxable		788,138		6,156		3.10	%		799,558		8,968		4.45	%
Tax-exempt (2)		205,098		1,938		4.94	%		185,335		1,798		5.08	%
Federal funds sold and other		230,698		588		1.08	%		124,664		509		1.78	%
Total interest-earning assets		4,441,672	$	49,079		4.45	%		4,690,347	$	53,728		4.60	%
Nonearning assets
Intangible assets		255,268							258,266
Other nonearning assets		240,241							195,219
Total assets	$	4,937,181						$	5,143,832
Interest-bearing liabilities:
Interest-bearing deposits:
Interest checking	$	533,191	$	898		0.67	%	$	371,932	$	579		0.62	%
Savings and money market		1,536,169		4,687		1.21	%		1,125,208		3,726		1.31	%
Time		1,169,606		5,577		1.89	%		1,772,244		9,570		2.14	%
Total interest-bearing deposits		3,238,966		11,162		1.37	%		3,269,384		13,875		1.68	%
Securities sold under agreements to repurchase		194,283		398		0.81	%		303,801		542		0.71	%
Federal Home Loan Bank advances and other borrowings		121,414		796		2.60	%		229,734		1,450		2.50	%
Subordinated debt		97,476		667		2.72	%		97,476		830		3.38	%
Total interest-bearing liabilities		3,652,139		13,023		1.41	%		3,900,395		16,697		1.70	%
Noninterest-bearing deposits		575,606		—		—			517,296		—		—
Total deposits and interest-bearing liabilities		4,227,745	$	13,023		1.22	%		4,417,691	$	16,697		1.50	%
Other liabilities		19,460							11,400
Stockholders’ equity		689,976							714,741
Total liabilities and stockholders’ equity	$	4,937,181						$	5,143,832
Net interest income			$	36,056						$	37,031
Net interest spread (3)						3.04	%						2.90	%
Net interest margin (4)						3.29	%						3.19	%

(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, 2010 would have been 3.23% compared to a net interest spread of 3.10% for the quarter ended December 31, 2009.
(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

	Twelve months ended							Twelve months ended
(dollars in thousands)	December 31, 2010							December 31, 2009
	Average							Average
	Balances		Interest		Rates/ Yields			Balances		Interest		Rates/ Yields
Interest-earning assets:
Loans (1)	$	3,362,024	$	162,902		4.85	%	$	3,525,033	$	162,271		4.61	%
Securities:
Taxable		780,643		30,306		3.88	%		754,623		35,057		4.65	%
Tax-exempt (2)		205,029		7,917		5.09	%		165,702		6,541		5.21	%
Federal funds sold and other		188,091		2,224		1.27	%		93,212		1,848		2.16	%
Total interest-earning assets		4,535,787	$	203,348		4.55	%		4,538,570	$	205,717		4.58	%
Nonearning assets
Intangible assets		256,379							259,483
Other nonearning assets		221,730							213,681
Total assets	$	5,013,896						$	5,011,734
Interest-bearing liabilities:
Interest-bearing deposits:
Interest checking	$	520,351	$	3,491		0.67	%	$	359,774	$	1,983		0.55	%
Savings and money market		1,368,659		18,310		1.34	%		884,173		11,049		1.25	%
Time		1,419,358		28,056		1.98	%		2,022,196		50,097		2.48	%
Total interest-bearing deposits		3,308,368		49,857		1.51	%		3,266,143		63,129		1.93	%
Securities sold under agreements to repurchase		222,179		1,750		0.79	%		250,435		1,689		0.67	%
Federal Home Loan Bank advances and other borrowings		143,372		4,044		2.82	%		247,992		6,106		2.46	%
Subordinated debt		97,476		3,324		3.41	%		97,476		4,001		4.10	%
Total interest-bearing liabilities		3,771,395		58,975		1.56	%		3,862,046		74,925		1.94	%
Noninterest-bearing deposits		527,673		—		—			463,683		—		—
Total deposits and interest-bearing liabilities		4,299,068	$	58,975		1.37	%		4,325,729	$	74,925		1.73	%
Other liabilities		17,842							6,968
Stockholders’ equity		696,986							679,037
	$	5,013,896						$	5,011,734
Net interest income			$	144,373						$	130,792
Net interest spread (3)		��				2.99	%						2.64	%
Net interest margin (4)						3.25	%						2.93	%

(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, 2010 would have been 3.18% compared to a net interest spread of 2.85% for the twelve months ended December 31, 2009.
(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

	December			September			June			March			December			September
(dollars in thousands)	2010			2010			2010			2010			2009			2009
Balance sheet data, at quarter end:
Total assets	$	4,909,004			4,961,603			4,958,478			5,021,689			5,128,811			5,094,710
Total loans		3,212,440			3,251,923			3,333,900			3,479,536			3,563,382			3,607,886
Allowance for loan losses		(82,575	)		(84,550	)		(87,107	)		(90,062	)		(91,959	)		(82,981	)
Securities		1,018,637			968,532			907,296			989,325			937,555			932,440
Noninterest-bearing deposits		586,517			581,181			529,867			522,928			498,087			504,481
Total deposits		3,833,057			3,825,634			3,853,400			3,836,362			3,823,599			3,819,909
Securities sold under agreements to repurchase		146,294			191,392			159,490			200,489			275,465			215,674
FHLB advances and other borrowings		121,393			121,435			131,477			157,319			212,655			222,986
Subordinated debt		97,476			97,476			97,476			97,476			97,476			97,476
Total stockholders’ equity		677,457			686,529			681,915			700,261			701,020			710,091
Balance sheet data, quarterly averages:
Total assets	$	4,937,181			5,001,373			4,996,448			5,122,773			5,143,832			5,028,855
Total loans		3,217,738			3,295,531			3,418,928			3,520,012			3,580,790			3,583,182
Securities		993,236			954,869			962,401			1,032,957			984,893			918,628
Total earning assets		4,441,672			4,519,956			4,527,471			4,651,695			4,690,347			4,576,473
Noninterest-bearing deposits		575,606			534,171			504,354			495,610			517,296			462,783
Total deposits		3,814,572			3,859,124			3,816,973			3,853,671			3,786,680			3,746,566
Securities sold under agreements to repurchase		194,283			210,037			210,798			274,614			303,801			223,737
FHLB advances and other borrowings		121,414			126,130			147,491			179,280			229,734			236,660
Subordinated debt		97,476			97,476			97,476			97,476			97,476			97,476
Total stockholders’ equity		689,976			686,898			704,186			707,210			714,741			715,844
Statement of operations data, for the three months ended:
Interest income	$	49,079			50,650			50,929			52,690			53,728			52,442
Interest expense		13,023			14,590			15,231			16,130			16,697			17,894
Net interest income		36,056			36,060			35,697			36,560			37,031			34,548
Provision for loan losses		5,172			4,789			30,509			13,226			15,694			22,134
Net interest income after provision for loan losses		30,884			31,271			5,189			23,334			21,336			12,414
Noninterest income		8,666			8,594			10,569			8,486			8,177			7,737
Noninterest expense		36,452			37,774			36,491			36,167			35,448			27,281
Income (loss) before taxes		3,098			2,091			(20,734	)		(4,347	)		(5,935	)		(7,130	)
Income tax expense (benefit)		(697	)		—			5,630			(525	)		(3,467	)		(3,782	)
Preferred dividends and accretion		1,547			1,542			1,507			1,545			1,509			1,504
Net income (loss) available to common stockholders	$	2,248			549			(27,871	)		(5,368	)		(3,977	)		(4,852	)
Profitability and other ratios:
Return on avg. assets (1)		0.18	%		0.04	%		(2.24	%)		(0.42	%)		(0.31	%)		(0.38	%)
Return on avg. equity (1)		1.29	%		0.32	%		(15.88	%)		(3.08	%)		(2.21	%)		(2.69	%)
Net interest margin (1) (2)		3.29	%		3.23	%		3.23	%		3.25	%		3.19	%		3.05	%
Noninterest income to total revenue (3)		19.38	%		19.25	%		22.84	%		18.84	%		18.09	%		18.30	%
Noninterest income to avg. assets (1)		0.70	%		0.68	%		0.85	%		0.67	%		0.63	%		0.61	%
Noninterest exp. to avg. assets (1)		2.93	%		3.00	%		2.93	%		2.86	%		2.73	%		2.15	%
Efficiency ratio (4)		81.51	%		84.59	%		78.87	%		80.29	%		78.41	%		64.52	%
Avg. loans to average deposits		84.35	%		85.40	%		89.57	%		91.34	%		94.56	%		95.64	%
Securities to total assets		20.75	%		19.52	%		18.30	%		19.70	%		18.28	%		18.30	%
Average interest-earning assets to average interest-bearing liabilities		121.62	%		120.26	%		120.14	%		118.99	%		120.25	%		119.13	%
Brokered time deposits to total deposits (15)		0.03	%		1.80	%		3.70	%		5.40	%		8.67	%		11.50	%

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)	2010			2010			2010			2010			2009			2009
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans	$	80,863			103,127			118,331			131,381			124,709			121,726
Other real estate (ORE)		59,608			48,710			42,616			24,704			29,603			22,769
Total nonperforming assets	$	140,471			151,837			160,947			156,085			154,312			144,495
Past due loans over 90 days and still accruing interest	$	138			3,639			3,116			395			181			65
Restructured accruing loans		20,468			13,468			10,861			9,534			26,978			12,827
Net loan charge-offs	$	7,146			7,346			33,463			15,123			6,718			5,228
Allowance for loan losses to nonaccrual loans		102.1	%		82.0	%		73.6	%		68.5	%		73.7	%		68.2	%
As a percentage of total loans:
Past due accruing loans over 30 days		0.30	%		0.67	%		0.66	%		1.54	%		0.46	%		0.86	%
Potential problem loans (5)		6.95	%		8.23	%		9.30	%		8.63	%		7.18	%		7.24	%
Allowance for loan losses		2.57	%		2.60	%		2.61	%		2.59	%		2.58	%		2.30	%
Nonperforming assets to total loans and ORE		4.29	%		4.60	%		4.77	%		4.45	%		4.29	%		3.98	%
Nonperforming assets to total assets		2.86	%		3.06	%		3.25	%		3.11	%		3.01	%		2.84	%
Annualized net loan charge-offs year-to-date to avg. loans (6)		1.96	%		2.26	%		2.84	%		1.74	%		1.71	%		2.04	%
Avg. commercial loan internal risk ratings (5)		4.8			4.9			4.9			4.9			4.8			4.7
Interest rates and yields:
Loans		4.99	%		4.96	%		4.74	%		4.74	%		4.71	%		4.61	%
Securities		3.48	%		3.97	%		4.45	%		4.63	%		4.57	%		4.69	%
Total earning assets		4.45	%		4.51	%		4.58	%		4.66	%		4.60	%		4.60	%
Total deposits, including non-interest bearing		1.16	%		1.27	%		1.43	%		1.42	%		1.45	%		1.60	%
Securities sold under agreements to repurchase		0.81	%		0.82	%		0.69	%		0.82	%		0.71	%		0.64	%
FHLB advances and other borrowings		2.60	%		2.90	%		2.88	%		2.87	%		2.50	%		2.48	%
Subordinated debt		2.72	%		3.78	%		3.63	%		3.52	%		3.38	%		3.86	%
Total deposits and interest-bearing liabilities		1.22	%		1.35	%		1.43	%		1.49	%		1.50	%		1.65	%
Capital ratios (7):
Stockholders’ equity to total assets		13.8	%		13.8	%		13.8	%		13.9	%		13.7	%		13.9	%
Leverage		10.6	%		10.5	%		10.4	%		10.6	%		10.7	%		10.9	%
Tier one risk-based		13.6	%		13.5	%		13.1	%		13.4	%		13.1	%		13.1	%
Total risk-based		15.2	%		15.1	%		14.8	%		15.0	%		14.8	%		14.7	%
Tangible common equity to tangible assets		7.1	%		7.2	%		7.1	%		7.4	%		7.3	%		7.5	%
Tangible common equity to risk weighted assets		9.1	%		9.3	%		9.0	%		9.1	%		8.9	%		9.1	%

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)	2010			2010			2010			2010			2009			2009
Per share data:
Earnings (loss) — basic	$	0.07			0.02			(0.85	)		(0.16	)		(0.12	)		(0.15	)
Earnings (loss) — diluted	$	0.07			0.02			(0.85	)		(0.16	)		(0.12	)		(0.15	)
Book value per common share at quarter end (8)	$	17.22			17.61			17.61			18.20			18.41			18.74
Weighted avg. common shares — basic		33,062,533			32,857,428			32,675,221			32,558,016			32,502,101			32,460,614
Weighted avg. common shares — diluted		33,670,890			33,576,963			32,675,221			32,558,016			32,502,101			32,460,614
Common shares outstanding		33,870,380			33,660,462			33,421,741			33,351,118			33,029,719			32,956,737
Investor information:
Closing sales price	$	13.58			9.19			12.85			15.11			14.22			12.71
High closing sales price during quarter	$	13.74			14.33			18.93			16.88			14.47			17.03
Low closing sales price during quarter	$	9.27			8.51			11.81			13.10			11.45			12.15
Other information:
Gains on sale of loans and loan participations sold:
Mortgage loan sales:
Gross loans sold	$	143,793			137,094			92,144			72,196			120,760			114,049
Gross fees (9)	$	2,610			2,503			1,669			1,157			1,942			1,910
Gross fees as a percentage of mortgage loans originated		1.81	%		1.83	%		1.81	%		1.60	%		1.61	%		1.67	%
Gains on sales of investment securities, net	$	—			—			2,259			365			—			—
Brokerage account assets, at quarter-end (10)	$	1,038,000			966,000			921,000			974,000			933,000			898,000
Trust account assets, at quarter-end	$	693,000			647,000			627,000			648,000			635,000			607,000
Floating rate loans as a percentage of total loans (11)		36.9	%		37.9	%		37.8	%		38.9	%		38.0	%		38.0	%
Balance of commercial loan participations sold to other banks and serviced by Pinnacle, at quarter end	$	55,632			57,964			66,503			78,529			81,630			92,837
Core deposits (12)	$	3,115,428			2,925,673			2,781,748			2,676,016			2,586,685			2,242,245
Core deposits to total funding (12)		74.3	%		69.0	%		65.2	%		62.4	%		58.7	%		51.5	%
Risk-weighted assets	$	3,639,095			3,679,436			3,748,498			3,878,884			3,970,193			4,000,359
Total assets per full-time equivalent employee	$	6,384			6,349			6,229			6,389			6,601			6,634
Annualized revenues per full-time equivalent employee		230.4			235.0			233.1			232.4			234.0			221.4
Number of employees (full-time equivalent)		769.0			781.0			796.0			786.0			777.0			768.0
Associate retention rate (13)		93.5	%		95.2	%		97.3	%		96.6	%		95.5	%		94.2	%
Selected economic information (in thousands) (14):
Nashville MSA nonfarm employment		723.2			717.9			712.0			713.7			724.7			728.3
Knoxville MSA nonfarm employment		325.0			323.8			320.1			317.2			322.1			323.2
Nashville MSA unemployment		8.5	%		8.4	%		9.0	%		9.5	%		9.4	%		9.2	%
Knoxville MSA unemployment		7.5	%		7.8	%		8.1	%		8.8	%		8.7	%		8.6	%
Nashville residential median home price	$	171.0			178.0			171.3			159.4			160.8			163.7
Nashville inventory of residential homes for sale		13.3			14.9			14.9			14.1	��		13.3			14.7

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

	As of December 31,			As of December 31,
(dollars in thousands,except per share data)	2010			2009
Reconciliation of certain financial measures:
Tangible assets:
Total assets	$	4,909,004		$	5,128,811
Less: Goodwill		(244,090	)		(244,107	)
Core deposit and other intangibles		(10,705	)		(13,686	)
Net tangible assets	$	4,654,208		$	4,871,018
Tangible common equity:
Total stockholders’ equity	$	677,457		$	701,020
Less: Preferred stock		(90,789	)		(89,463	)
Goodwill		(244,090	)		(244,107	)
Core deposit and other intangibles		(10,705	)		(13,686	)
Net tangible common equity	$	331,873		$	353,764
Ratio of tangible common equity to tangible assets		7.13	%		7.26	%
Tangible common equity per common share	$	9.80		$	10.71

	For the three months ended
(dollars in thousands)	December 31, 2010		September 30, 2010
Noninterest expense	$	36,452	$	37,774
Other real estate owned expense		7,874		8,522
Noninterest expense excluding the impact of other real estate owned expense	$	28,578	$	29,252

	For the three months ended
(dollars in thousands)	December 31, 2010
Noninterest expense	$	36,452
Sum of Net interest income and Noninterest income		44,722
Efficiency Ratio		81.5	%
Noninterest expense		36,452
Other real estate owned expense		7,874
Noninterest expense excluding the impact of other real estate owned expense	$	28,578
Sum of Net interest income and Noninterest income	$	44,722
Efficiency Ratio excluding the impact of other real estate owned expense		63.9	%

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

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.	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.
6.	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.
7.	Capital ratios are for Pinnacle Financial Partners, Inc. and are defined as follows:
	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.
8.	Book value per share computed by dividing total stockholders’ equity less preferred stock and common stock warrants by common shares outstanding.
9.	Amounts are included in the statement of operations in “Gains on the sale of loans and loan participations sold”, net of commissions paid on such amounts.
10.	At fair value, based on information obtained from Pinnacle’s third party broker/dealer for non-FDIC insured financial products and services.
11.	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.
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 $100,000. 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 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.
15.	Brokered deposits do not include reciprocal balances under the Certificate of Deposit Account Registry Service (CDARS).