Pinnacle Financial Partners, Inc. · NYSE:PNFP
Pinnacle Financial Partners — Investor Presentation (February 2008)
25 slides from Pinnacle Financial Partners's investor presentation, Feb 5, 2008
Slide 1: Continued Growth for Tennessee's Premier Financial Services Franchise
M. Terry Turner, President and CEO Harold Carpenter, CFO February 5-6, 2008 Continued Growth for Tennessee's Premier Financial Services Franchise
Slide 2: Forward-Looking Statements
Forward-Looking Statements Pinnacle Financial Partners, Inc. ("Pinnacle Financial") may from time to time make written or oral statements, including statements contained in this presentation which may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange
Slide 3: Pinnacle Profile
Source: Nasdaq, finance. yahoo.com Pinnacle Profile High growth, one-bank holding company Headquartered in Nashville, Tennessee 7 years old Total assets at December 31, 2007 - $3.8 billion Market cap - $23.99 per share (2/1/08) = $530 million
Slide 4: Pinnacle's Formula for Success
Pinnacle's Formula for Success Effective strategies Growth opportunities in Tennessee's strongest metropolitan markets Vulnerable regional bank competitors Urban community bank positioning Focus on execution
Slide 5: Effective Strategies
Effective Strategies Focus on businesses, real estate professionals and affluent consumers Provide distinctive service and effective advice Hire a large cadre of experienced advisors Offer a full line of financial services Provide extraordinary convenience "Outsized Asset Growth with Outstanding Ass
Slide 6: Creates opportunities for growth, growth, growth
Creates opportunities for growth, growth, growth Effective Strategies Loans Deposits
Slide 7: Diversified loan and deposit portfolios
Diversified loan and deposit portfolios Effective Strategies Deposits Loans
Slide 8: Soundness remains strong
Soundness remains strong Effective Strategies Nonaccruals Net Charge-offs Weighted Avg. Commercial Loan Risk Ratings
Slide 9: Track Record of De Novo Banking Success
Track Record of De Novo Banking Success Nashville (2000), Knoxville (2007) Fastest growing bank in the nation1 10 de novo branch offices 300 new hires with 24 years average experience Growth Opportunities 1 FDIC, Fortune Magazine
Slide 10: Balancing earnings and investment
2003 2004 2005 2006 2007 FD EPS 0.32 0.61 0.85 1.18 1.34 Merger Expense 0.07 0.02 $0.61 $1.36 $1.25 $0.85 $0.32 CAGR = 34.3% Growth Opportunities Balancing earnings and investment
Slide 11: Enter Tennessee's other strong metropolitan markets on a de novo basis
Enter Tennessee's other strong metropolitan markets on a de novo basis ? 3. Memphis ? 1. Nashville ? 2. Knoxville Pinnacle's bias for market extensions has been de novo versus acquisition. Criteria for market extensions include: Only launch when PNFP can recruit FAs to build a $500 - $750 million ba
Slide 12: The Knoxville MSA
Large, fast growing metropolitan market Attractive competitive landscape Ability to attract large cadre of experienced bankers Meets aggressive growth and profitability targets Pinnacle's unique ability to penetrate the market Opportunity to replicate the Nashville model The Knoxville MSA Growth Opp
Slide 13: The Knoxville MSA Multi-year Performance Targets
The Knoxville MSA Multi-year Performance Targets 2007 2008 2009 2010 2011 Associate hiring plan 26 39 51 59 63 Facilities 2 2 4 5 5 Loan growth targets (millions) $ 100 $ 225 $ 375 $ 490 $ 600 Deposit growth targets (millions) $ 62 $ 155 $ 280 $ 365 $ 450 Targeted FD EPS $ (0.08) $ 0.01 $ 0.10 $ 0.2
Slide 14: Mid-America strategically enhances Pinnacle's existing franchise
Mid-America strategically enhances Pinnacle's existing franchise The acquisition is a financially compelling transaction Mid-America - Combination Highlights Growth Opportunities Acquisitions in the Nashville MSA
Slide 15: Mid-America - Scarcity Value in a Coveted Market
Mid-America - Scarcity Value in a Coveted Market 2001 2002 2003 2004 2005 2006 2007 PrimeTrust 2.521 76.023 154.102 226.486 301.878 Bank of the South 55.587 104.576 151.723 193.595 262.981 Mid-America 686.69 872.85 CAGR = 54.9% Mid-America's Net Loan Growth $ Millions Note: 6-year CAGR: 2001 - 2007.
Slide 16: Resulting Distribution
Pinnacle Offices PrimeTrust Offices Bank of the South Offices Planned closure Growth Opportunities Acquisitions in the Nashville MSA Resulting Distribution
Slide 17: Mid-America - Low Execution Risk
Mid-America - Low Execution Risk Unrealized cost saves from MOE that formed Mid-America Due diligence completed with specific saves identified Common systems provider for all 3 banks Strong cultural fit Three Mid-America directors have joined the Pinnacle board Mid-America management bound by multi-
Slide 18: Pinnacle's acquisition of Mid-America
Creates scarcity value in a coveted market Strategically accelerates Pinnacle's Nashville distribution Enhances Pinnacle's rapid growth potential Has relatively low execution risk Is accretive to GAAP EPS in the first 12 months Offers additional revenue synergies that are not required Pinnacle's acq
Slide 19: Deposit Market Share Trends in the Nashville MSA
Source: FDIC 6/07 Deposit Market Share Trends in the Nashville MSA 1999 2000 2001 2002 2003 2004 2005 2006 2007 70.51 67.04 64.82 62.98 61.79 59.04 58.16 54.02 48.86 Top 3 banks in Nashville are Regions, SunTrust and Bank of America Aggregate Market Share Aggregate market share for the big 3 in Nash
Slide 20: Vulnerable Regional Bank Competitors - Nashville
Note: Dollar values in millions. Source: SNL Financial; FDIC deposit data as of June 30, 2007. Vulnerable Regional Bank Competitors Nashville
Slide 21: Deposit Market Share Trends in the Knoxville MSA
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 66.62 65.74 63.95 63.34 61.91 60.42 61.21 60.33 59.37 57.63 56.71 Aggregate Market Share Source: FDIC - 6/07 Top 3 banks in Knoxville are First Horizon, Regions and SunTrust Deposit Market Share Trends in the Knoxville MSA Aggregate market share
Slide 22: Urban Community Bank Positioning
Urban Community Bank Positioning Long-term experience in Tennessee's urban markets Sophisticated products (only available at regional banks) Treasury management Wealth management Distinctive service (only available at community banks) Experienced associates Courier deposit pickup Free ATM usage worl
Slide 23: Focus on Execution
Associate engagement Exceeds Gallup's 75th percentile 90 % retention rate Client engagement - "Better than Competitors" 5 year asset CAGR - 51% Net charge off ratio - 0.06% 5 year EPS CAGR - 70% Focus on Execution
Slide 24: Attractive Valuation: Recent Pullback Provides Great Entry Point
Attractive Valuation Recent Pullback Provides Great Entry Point
Slide 25: Why PNFP?
Fast growing metropolitan markets Extremely attractive competitive landscapes Reliable track record for growth and execution Strong asset quality Attractive valuation Why PNFP?
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