Pinnacle Financial Partners, Inc. · NYSE:PNFP
Pinnacle Financial Partners — SunTrust Robinson Humphrey 2004 Sunbelt Community Bank Conference
26 slides from Pinnacle Financial Partners's conference presentation, Sep 28, 2004
Slide 1: SunTrust Robinson Humphrey 2004 Sunbelt Community Bank Conference
SunTrust Robinson Humphrey 2004 Sunbelt Community Bank Conference September 28, 2004
Slide 2: Safe Harbor Statement
Certain of the statements in this presentation may constitute forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"). The words "expect," "anticipate," "intend," "plan," "believe," "seek," "estimate" and similar expressions are
Slide 3: Company Profile
High growth, one-bank holding company Headquartered in Nashville, Tennessee's state capitol Approximately 4 years old Total assets at June 30, 2004 - $586 million NASDAQ National Market - PNFP Market cap at September 22, 2004 - $189 million Insider / employee ownership - 15% Institutional ownership
Slide 4: Company Profile: Price History
Company Profile g Price History - PNFP (9M /2001-9/23/2004) PAteneal PARTNERS INC Phx Banking index |B Dow Jones Industrials ‘SP 500 index Nasdaq Composite Index | Sep 2001 Jan 2003 Jan 2004 Sep 2004
Slide 5: Valuation Summary
Tangible stockholders' equity as of June 30, 2004 $ 35,125,000 Net proceeds from 3Q04 offering $ 18,200,000 Proforma stockholders' equity $ 53,325,000 Shares outstanding, post offering 8,389,000 Tangible book value / share $ 6.36 Closing price at September 22, 2004 $22.50 Price to tangible BV / shar
Slide 6: Key Value Oriented Institutional Holders
* Wellington Management Babson Capital & Co. * Sunova Capital, LP Tontine Management, LLC * Emerald Advisors Banc Funds Company T. Rowe Price Associates * Acquired significant volume in recent follow-on offering Source: SNL, MSN, Nasdaq Valuation Summary Key Value Oriented Institutional Holders
Slide 7: High Growth Peer Group Comparisons
Valuation Summary High Growth Peer Group Comparisons Excellent value - if dramatic growth is sustainable
Slide 8: Excellent value if the dramatic growth is sustainable
Excellent value if the dramatic growth is sustainable Growth strategy: Urban community bank with room to grow market share in Nashville Valuation Summary Capacity already exists to double the size of the firm ? 3. Knoxville Double the number of offices in deposit rich trade areas Urban community ban
Slide 9: Background and Growth Opportunity
The Nashville Market Large, fast growing, metropolitan market Vulnerable Competition Extremely attractive competitive landscape Continued Rapid Growth Existing capacity would double the size of our firm Continued focus on new markets, people and profits Background and Growth Opportunity
Slide 10: Large, Fast Growing, Metropolitan Market
SIZE 38th Largest MSA 1.3 million population $21.3 billion deposits GROWTH 18th fastest growing population 4th fastest growing per capita income Source: U.S. Census, FDIC Large, Fast Growing, Metropolitan Market
Slide 11: Large, Fast Growing, Metropolitan Market: Economic Profile
Nashville is home to: Tennessee State Government HCA, Lifepoint, Louisiana Pacific, CareMark, Dollar General, CBRL, Tractor Supply Nissan and Saturn Vanderbilt University Grand Ole Opry and the Country Music Hall of Fame The Tennessee Titans and the Nashville Predators Source: U.S. Census, Nashville
Slide 12: Nashville Deposit Market Share Rankings
Total Deposits Total Deposits Total Share Total Share Rank Institution ($000) ($000) (%) (%) Predecessor Bank Predecessor Bank 1 AmSouth Bancorp (AL) $ 2,995,887 $ 2,995,887 25.3% 25.3% First American Corp. First American Corp. 2 SunTrust Banks (GA) 2,407,068 2,407,068 20.3% 20.3% Third National Ban
Slide 13: Extremely Attractive Competitive Landscape
6/30/1995 6/3/1996 6/30/1997 6/30/1998 6/30/1999 6/30/2000 6/30/2001 6/30/2002 6/1/2003 AmSouth 24.09 23.96 24.52 26.23 27.63 23.3 19.8 18.6 18.9 SunTrust 18.25 19.51 19.66 18.01 16.9 17 17.1 18.2 16.4 B of A 20.02 18.63 17.08 16.67 16.36 15.3 16.6 16.1 16.7 Community Banks 9.49 10.57 12.06 13.24 14
Slide 14: Seasoned Management and Team of Professionals
Existing Capacity to Double the Asset Size FAM Vice Chairman Chairman FAM President General Bank President ASO Sr. Credit Officer, Tennessee Senior Credit Officer FAM City President, Nashville Senior Banking Officer FAM EVP Consumer Bank CAO ASO EVP Comm Banking Nashville Financial Advisor ASO EVP P
Slide 15: Existing Capacity to Double the Asset Size
10 years experience in Nashville market No resumes or applications Capacity (117) to grow company to $1.2 billion Existing Capacity to Double the Asset Size PNFP Headcount 44 51 56 90 129 147 2000 2001 2002 2003 2004 Proj 2005 Proj FAM/ASO STI FU/USB SNV NCF Others 53 17 5 4 4 17
Slide 16: Business Strategy
Focus on small businesses and affluent consumers. Develop and retain a team of experienced bankers with backgrounds in Nashville business and affluent markets. Offer a full line of financial services including traditional depository and credit products as well as investment and insurance products. P
Slide 17: What Clients Are Saying
"I've been with three banks in the last five years. I've never left a bank for a better interest rate, but always because of a service issue. Pinnacle's different. It seems as if they've asked people exactly what they look for in a bank, and they've not only offered it, but they've perfected it! Fro
Slide 18: Quarterly Financial Trends
Total Deposits (EOP) Total Loans (EOP) Total Assets (EOP) Net Income Before Tax Quarterly Financial Trends (in millions)
Slide 19: Quarterly Performance Trends
Return on Assets Return on Average Equity Net Interest Margin Efficiency Ratio Quarterly Performance Trends
Slide 20: Loan and Deposit Mix
Deposit Mix Loan Mix Loan and Deposit Mix Contractual Loan Repricing
Slide 21: Quarterly Asset Quality Ratios
Net Charge Offs Allowance to Total Loans (EOP) 10 point scale; 1 through 6 = "pass" credits 7 through 10 = criticized / classified Non Accrual Loans to Total Loans Weighted Average Commercial Loan Risk Rating Quarterly Asset Quality Ratios
Slide 22: Performance Against Commitments
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Plan 100 200 300 400 500 600 700 800 900 1000 Actual 175 305 498 Guidance Actual Qtr Low High Results 4Q02 $0.04 $0.05 $0.04 1Q03 $0.04 $0.05 $0.05 2Q03 $0.06 $0.07 $0.07 3Q03 $0.08 $0.10 $0.10 4Q03 $0.10 $0.11 $0.11 1Q04 $0.11 $0.12 $0.13 2Q04 $0.13
Slide 23: Achievements
Largest, locally-owned financial institution in Nashville. Opened 6 branch offices in less than four years. Hired 117 associates and received recognition as the Best Place to Work in Nashville for mid-sized companies by the Nashville Business Journal. Completed an IPO, a private placement and two fo
Slide 24: Our plan for the future
Maintain soundness Keep distinctive service and expert advice as top priorities Continue to capitalize on consolidation related turmoil Continue to invest for future growth People (37 in 2004, 23 in 2005) Markets / Offices (2 in 2004; 2 in 2005) Infrastructure Our plan for the future
Slide 25: Why Pinnacle?
Large, rapidly-growing, metropolitan market Extremely attractive competitive landscape Seasoned management and team of professionals with existing capacity to double the asset size of the firm Continued focus on additional markets, people and profits Strong asset quality Why Pinnacle?
Slide 26: Pinnacle Financial Partners
-“innacle FINANCIAL PARTNERS