Pinnacle Financial Partners, Inc. · NYSE:PNFP
Pinnacle Financial Partners — Q2 2020 Earnings Presentation
69 slides from Pinnacle Financial Partners's earnings presentation, Jul 22, 2020
Slide 1: Investor Call Second Quarter 2020
Investor Call SECOND QUARTER 2020 July 22, 2020 Time: 8:30 AM CDT Webcast: www.pnfp.com (investor relations) Audio only: 877-602-7944 M. TERRY TURNER, PRESIDENT AND CEO HAROLD R. CARPENTER, EVP AND CFO TIM HUESTIS, EVP AND CHIEF CREDIT OFFICER
Slide 2: Safe Harbor Statements: Forward Looking Statements
Safe Harbor Statements Forward Looking Statements All statements, other than statements of historical fact, included in this presentation, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section
Slide 3: Safe Harbor Statements: Non-GAAP Financial Matters
Safe Harbor Statements Non-GAAP Financial Matters This presentation contains certain non-GAAP financial measures, including, without limitation, earnings per diluted common share, efficiency ratio and the ratio of noninterest expense to average assets, excluding in certain instances the impact of ex
Slide 4: Q1 Guidance: Focus on Defense During This Pandemic
Q1 Guidance: Focus on Defense During This Pandemic We have and will continue to build liquidity, reserves and capital during the crisis Increased liquidity Increased allowance Increased capital Reduce the noninterest expense build by limiting hiring
Slide 5: 2Q20 Financial Information
2Q20 Financial Information Despite the difficult operating environment, our key success measures such as asset quality, loan and core deposit growth, deposit betas, fee growth, pre-provision net revenue growth and tangible book value accretion were all very strong this quarter.
Slide 6: 2Q20 Summary Results of Key GAAP Measures
2Q20 Summary Results of Key GAAP Measures Total Revenues FD EPS Net Income Total Loans Total Deposits Book Value per Common Share (millions) (millions) Classified Asset Ratio NPA/ Loans & OREO NCOs 6
Slide 7: 2Q20 Summary Results of Key Non-GAAP Measures
2Q20 Summary Results of Key Non-GAAP Measures Adjusted Pre-Tax Pre-Provision Total Revenues FD EPS* $1.42 CAGR 20.5% Net Income* $264,066 $273,739 (millions) $230,175 $1.15 CAGR 22.7% $ 143,628 $ 147,892 $141,684 $0.89 $0.84 $ 122,992 $0.75 $107,757 $ 73,233 $ 53,251 Total Loans Total Core Deposits
Slide 8: Balance Sheet Growth was Strong Owing In Part to PPP: Average Loans
Balance Sheet Growth was Strong Owing In Part to PPP Core loan growth in 2Q20 was above expectations before impact of net line draws/ paydowns Average Loan Growth $24,000 5.40% Annual Organic Loan Growth $22,000 (excludes Day 1 merger impact) 5.20% $22,257 32.0% $20,000 5.00% $20,009 $19,600 28.0% $
Slide 9: Balance Sheet Growth was Strong Owing In Part to PPP: Deposits
Balance Sheet Growth was Strong Owing In Part to PPP Deposit growth was unseasonably strong in Q2 even after eliminating the estimated impact of PPP Average Deposit Growth $26,000 3.00% Annual Organic Deposit Growth (excludes Day 1 merger impact) $24,000 2.75% $24,807 50.0% $22,000 2.50% 45.0% 16.90
Slide 10: Margin Contracted as Balance Sheet Repositioned for COVID-19
Margin Contracted as Balance Sheet Repositioned for Potential Impacts of COVID-19 Loan yields contracted along with major indices All Loans C&I CRE Construction LIBOR At June 30, 2020 (*) 21.2% Prime 38.0% T-Bill 37.7% 35.6% 53.1% 38.8% 1.5% 46.0% Fixed Rate <1Y 49.6% 27.5% Fixed Rate >1Y 17.3% 4.6%
Slide 11: Margin Contracted: Deposit Beta and Rate Reductions
Margin Contracted as Balance Sheet Repositioned for Potential Impacts of COVID-19 PNFP lowered COF and has achieved a 45% deposit beta since 6/30/2019 – more deposit rate reductions expected • Recognized 54% beta on negotiated deposits and 94% on indexed deposits since 6/30/2019 • In the aggregate,
Slide 12: Margin Contracted: COF Reductions and Liquidity
Margin Contracted as Balance Sheet Repositioned for Potential Impacts of COVID-19 COF reductions partially offset declining loan yields, increasing liquidity and purchase accounting impacts 4.50% Actual/Anticipated Discount Accretion 3.77% 3.77% 3.76% 3.75% 3.72% 3.70% 3.55% 3.55% 3.46% Through Dec
Slide 13: PNFP Grew Fees on a Linked-Quarter Basis
PNFP Grew Fees on a Linked-Quarter Basis Mortgage and BHG provided substantial growth Year-over-Year 2Q20 1Q20 2Q19 Change Rate • Income from equity method investment in BHG grew at Service charges $6,910 $9,032 $8,940 (22.7%) a linked-quarter annualized growth rate of greater Investment services 5,
Slide 14: Expenses Shrank During the Quarter
Expenses Shrank During the Quarter Growth in expenses should be in the low to mid-single digit range for the year Year-over-Year • Salary increase largely attributable to increased personnel. 2Q20 1Q20 2Q19 Growth % Salaries and employee benefits: Salaries $54,645 $52,176 $44,625 22.5% Up 216 FTE’s
Slide 15: Provision Expense was Outsized as PNFP Built Reserves
Provision Expense was Outsized as PNFP Built Reserves Unemployment and GDP forecast worsened slightly quarter over quarter • Total Allowance for Credit Losses for loans = $285.4 mm or 1.27% of loans at June 30, 2020, or 1.41% excluding PPP loans Off-Balance $’s in 000’s ALL % of Loans Total ACL Shee
Slide 16: PNFP will Continue to Focus on Soundness More than Growth in 3Q20
PNFP will Continue to Focus on Soundness More than Growth in 3Q20 The length and depth of the pandemic are unknown, but we remain confident in our model 3Q20 Outlook (in relation to Notes Full Year 2020 2Q20) Low to mid-single Anticipate meaningful PPP payoff/forgiveness before y/e with resulting PP
Slide 17: Bankers' Healthcare Group
Bankers’ Healthcare Group BHG’s differentiated model has proven very resilient thus far with continued strong originations, loan sales and yield/spread premium. Temporarily reverting to the gain on sale model provided meaningful pre-provision net revenue to BHG and to Pinnacle. Capital and reserve l
Slide 18: BHG's Differentiated Model Continues to Outperform
BHG’s Differentiated Model Continues to Outperform BHG continues to originate and sell loans with limited impact by COVID-19 $600M • BHG’s targeted marketing tactics are 15.42% 15.45% 16.00% differentiating themselves from other 14.02% 14.33% 13.84% models as both 1Q20 and 2Q20 loan $500M 13.55% 13.
Slide 19: BHG's Credit Quality Continues to Impress
BHG BHG’s Credit Quality Continues Differentiated ModeltoContinues Impress to Outperform Sophisticated Vintage credit scoring analysis demonstrates continuousmodels produce improvement in portfolioimpressive performance results • Historical credit results indicate that 70% of losses occur Historical
Slide 20: BHG Loan Deferrals
BHG’s Differentiated Model Continues to Outperform Only 14.8% of BHG’s loans have been granted deferrals and ongoing requests have essentially stopped • Deferrals at 14.8% of total portfolio thru June 30th – dentists and optometrists are the most common requesters. 20 Source: BHG Internal Data as of
Slide 21: BHG Charge Offs and Reserves
BHG Credit BHG’s Quality Continues Differentiated to Impress Model Continues to Outperform Sophisticated BHG credit has built reserves scoring beyond thosemodels produce in the Great impressive results Recession Historical Charge Offs and Reserves ($s in millions) • Recourse obligation reserves 8.00
Slide 22: BHG Continues to Outperform
BHG Continues to Outperform BHG’s business model continues to perform well during pandemic Big Year at BHG • Interest rate environment provided BHG Net Earnings opportunity to access capital markets $200,000 and execute on its first securitization $182,461 • Anticipate closing in Q3 - $160 $150,000
Slide 23: COVID-19 and our Borrowers
COVID-19 and our Borrowers There are likely no borrowers that are unimpacted by COVID-19. It seems apparent that segments like hotels, restaurants, retail and entertainment will be most impacted by the loss of revenue from the national and local attempts to contain its spread. But it appears the CAR
Slide 24: Asset Quality: Segments Disrupted by COVID-19
Asset Quality Segments Disrupted by COVID-19 2Q20 Loan Portfolio Highlights: at June 30, 2020 • Well diversified portfolio Hotels Restaurants • Granular portfolio emphasis on smaller ticket sizes. 4.3% 3.2% • Meaningful declines in loan accounts that had previously deferred payments Entertainment •
Slide 25: Asset Quality: Loan Deferrals
Asset Quality The volume of loans with payment deferrals has declined meaningfully Loan deferrals as of July 17, 2020 Deferred $ Deferred $ Deferred $ Deferred $ Volume at Volume at Volume at Volume at Mar. 31, 2020 Apr. 15, 2020 June 30, 2020 July 17, 2020 Hotels $130,129 $680,925 $809,562 $695,564
Slide 26: Hotel Portfolio
Hotel Portfolio Amounts as of 6.30.20 – Comments as of 7.17.20 Hotel Portfolio Highlights: • Hotel exposure represents 4.3% of total loan portfolio at 6.30.20 • $42.4mm of PPP loans booked in 2Q20 • Greater than 88% of hotel loans within our markets • Approximately 4.4% of exposure guaranteed by SBA
Slide 27: Top 10 Hotel Borrowers
Hotel Portfolio Amounts as of 6.30.20 – Comments as of 7.17.20 10 Largest Hotel Loans Location Exposure at LTV at Hotel Property Deferral at Top 10 Hotel Borrowers ('000s) 6.30.20 Loan Type 6.30.20 Flag Type 7.17.20 Little Rock, AR $32,894 Term 60% Marriott Full Service Yes Chattanooga, TN 31,161 Co
Slide 28: Restaurant Portfolio
Restaurant Portfolio Amounts as of 6.30.20 – Comments as of 7.17.20 Restaurant Portfolio Highlights: • Restaurant exposure represents 3.2% of total loan portfolio at 6.30.20 Outstanding Balance by Product Type • $179.2mm of PPP loans booked in 2Q20 Construction & • Includes loans to operators and lo
Slide 29: Restaurant Portfolio Borrowers
Restaurant Portfolio Amounts as of 6.30.20 – Comments as of 7.17.20 C&I and Owner-Occupied CRE Restaurant Borrowers with Exposure Greater than $10mm Top 10 Non Owner-Occupied CRE Restaurant Borrowers Exposure LTV at Exposure Deferral Location at 6.30.20 6.30.20 Food Service Type Deferral at 7.17.20
Slide 30: Retail Portfolio
Retail Portfolio Amounts as of 6.30.20 – Comments as of 7.17.20 Retail Highlights • Retail exposure represents 11.3% of total loan portfolio at 6.30.20 • $187.4mm of PPP loans booked in 2Q20 • Includes loans to retail businesses as well as developers renting space to retailers • Extremely granular N
Slide 31: Top 10 Retail Borrowers
Retail Portfolio Amounts as of 6.30.20 – Comments as of 7.17.20 CRE – Nonowner Occupied by Tenant Types 10 Largest Retail Relationships Exposure at 6.30.20 Loan Type LTV at 6.30.20 Tenant Type Deferral at 7.17.20 Top 10 Retail Borrowers Delray Beach, FL $28,000 Term 69% Grocery Anchored Shopping Cen
Slide 32: Entertainment Portfolio
Entertainment Portfolio Amounts as of 6.30.20 – Comments as of 7.17.20 10 Largest Entertainment Highlights: Entertainment Relationships Exposure at Loan Entertainment Deferral at • Entertainment portfolio is approximately 3.2% of total loans ('000) 6.30.20 Type Type 7.17.20 NEEDHAM HEIGHTS, MA $47,0
Slide 33: Moving Forward in this Pandemic
Moving Forward in this Pandemic All the impacts of the COVID-19 pandemic are unknown as yet. Duration and severity are likely a function of the length of time before a vaccine is readily available and the amount of government stimulus that is injected – both unknowns. But there can be little doubt t
Slide 34: Q3 Guidance: Focus on Defense During this Pandemic
Q3 Guidance: Focus on Defense During this Pandemic We have built liquidity and capital during this crisis • Maintain elevated levels of liquidity, but begin reductions in Q3 and Q4 • Build capital cushions through retained earnings though we aim to continue paying the common stock dividend • Contain
Slide 35: Moving Forward in this Pandemic: Client Relationships
Moving Forward in this Pandemic Many client relationships will be built or destroyed Most Important Qualities During Crisis Bank values long term relationship 79% 12% According to Greenwich Associates and based on current research Willingness to lend 67% 16% Pinnacle Financial Partners is recognized
Slide 36: Moving Forward in this Pandemic: Bank Switching
Moving Forward in this Pandemic Greenwich: “Record levels of Expected Bank Switching” • Angst over PPP has eroded bank loyalty among businesses and owners • Opportune time for building relationships • 3 in 10 companies cite intent to switch banks (2-3 times normal level) Source: Greenwich Associates
Slide 37: Q&A Second Quarter 2020
Q&A SECOND QUARTER 2020 -~innacle FINANCIAL PARTNERS
Slide 38: Supplemental Information
Supplemental Information Chart • Balance Sheet 39 • Asset Quality 56 • Income Statement 57 • Peer Group 68 38
Slide 39: Balance Sheet – Loan Portfolio
Balance Sheet – Loan Portfolio ($ in millions) Amts. % Amts. % Amts. %s Amts. %s 2Q20 2Q20 1Q20 1Q20 2Q19 2Q19 2Q18 2Q18 C&I $6,293.7 27.9% $6,752.3 33.1% $5,795.1 30.8% $4,821.3 28.3% C&I – Paycheck Protection Program 2,222.6 9.9% - - - - - - CRE – Owner Occ. 2,708.3 12.0% 2,650.2 13.0% 2,624.2 13.
Slide 40: Balance Sheet – Loan Portfolio by Region
Balance Sheet – Loan Portfolio ($ in millions) TOTAL PINNACLE TENNESSEE LOANS CAROLINAS/ VA LOANS ATLANTA OTHER UNIT LOANS* Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 C&I $6,293.7 $5,795.1 $4,594.5 $4,407.8 $895.5 $881.6 $19.1 - $784
Slide 41: Balance Sheet – Loan Portfolio by Market
Balance Sheet – Loan Portfolio ($ in millions) TOTAL PINNACLE C&I & O/O CRE CRE & CONSTRUCTION OTHER LOANS* Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 Nashville $6,681.3 $6,130.0 $2,991.1 $3,062.6 $2,603.2 $2,139.4 $1,087.0 $928.0 Knoxville 1,776.9 1,641.
Slide 42: Balance Sheet – Construction and Land Development
Balance Sheet – Loan Portfolio ($ in millions) Amts. % Amts. % Amts. % Amts. % 2Q20 2Q20 1Q20 1Q20 2Q19 2Q19 2Q18 2Q18 Residential – Spec $321.7 1.4% $347.7 1.7% $350.4 1.9% $294.9 1.7% Residential – Custom 165.9 0.8% 145.2 0.7% 129.5 0.7% 137.6 0.8% Residential – Condo 1.2 0.0% 1.5 0.0% 0.7 0.0% 0.
Slide 43: Balance Sheet – Construction by Region
Balance Sheet – Loan Portfolio ($ in millions) TOTAL PINNACLE TENNESSEE LOANS CAROLINAS/VA ATLANTA LOANS OTHER UNIT LOANS LOANS Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 Residential – Spec $321.7 $350.4 $229.8 $247.4 $91.5 $101.1 $0
Slide 44: Balance Sheet – NOO and Construction by Type
Balance Sheet – Loan Portfolio ($ in millions) Total NOO and Multifamily Total Construction Total NOO and Construction Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. 2Q20 1Q20 2Q19 2Q20 1Q20 2Q19 2Q20 1Q20 2Q19 Multifamily $590.4 $550.3 $709.1 $548.4 $491.8 $319.2 $1,138.8 $1,042.1 $1,028.3 H
Slide 45: Balance Sheet – Loan Portfolio Lines of Credit
Balance Sheet – Loan Portfolio Lines of Credit ($'s in millions) Linked Qtr. 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 Change CRE – Investment & Construction Net Active Balance $ 3,489.80 $ 3,591.00 $ 3,814.50 $ 3,870.10 $ 3,929.10 $ 4,090.80 $ 161.70 Net Available Credit 2,578.30
Slide 46: Net Charge Offs by Loan Type
Balance Sheet – Loan Portfolio Net Commercial Loan Charge Offs by Loan Type Net Consumer Loan Charge Offs by Loan Type 8.00% 0.50% 7.00% 0.40% 6.00% 0.30% 0.20% 5.00% 0.10% 4.00% 0.00% 3.00% -0.10% 2.00% -0.20% 1.00% -0.30% 0.00% -0.40% CRE Construction C&I Net commercial charge -1.00% offs Consumer
Slide 47: Balance Sheet – Loan Portfolio Concentration Tests
Balance Sheet – Loan Portfolio ($ in thousands) Description 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 Loans secured by real estate: Construction, land development, and other loans: 1-4 family residential construction loans $580,193 $582,106 $578,443 $575,975 $564,339 $575,753 Other construction loans and all la
Slide 48: Balance Sheet – Deposit Portfolio
Balance Sheet – Deposit Portfolio ($ in millions) TOTAL DEPOSITS CORE DEPOSITS NONCORE DEPOSITS TOTAL PINNACLE TRANSACTION AND MMDA CDs PUBLIC FUNDS and OTHER DEPOSITS 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 Nashville $9,319.6 $7,203.4 $8,515.1 $6,381.4 $529.2 $537.4 $275.3 $284.6 Knoxville 2,134.9
Slide 49: Balance Sheet – Bond Portfolio
Balance Sheet – Bond Portfolio Conservative bond portfolio Portfolio: June 30, 2020 Total Investments $4.4 billion Net Unrealized Gain $98.8 million 2.3% 2.6% Quarter Duration Avg. Yield- TE 2Q20 4.6% 2.6% 1Q20 4.3% 2.8% 4Q19 4.8% 2.9% 35.4% 3Q19 4.4% 3.0% 51.5% 2Q19 4.1% 3.2% 1Q19 3.7% 3.4% 4Q18 3.
Slide 50: Balance Sheet – Bond Portfolio
Balance Sheet – Bond Portfolio 4.00 40.0 Effective Bond Portfolio Composition End of Period 3.50 35.0 79% 80% 3.00 30.0 77% 74% 2.59 70% % of Total Assets 2.50 25.0 Bond Yields 2.00 20.0 1.50 13.0 15.0 1.00 10.0 30% 26% 23% 0.50 5.0 21% 20% - - Jun. 2019 Sep. 2019 Dec. 2019 Mar. 2020 Jun. 2020 PNFP
Slide 51: Balance Sheet – Loan & Deposit Growth
Balance Sheet – Loan & Deposit Growth Period-End to Period-End Loan Growth Period-End to Period End Deposit Growth $1,054 $1,700 $2,214 $25,522 $22,520 $1,435 $289 $380 $20,397 $20,306 $21,333 51 Source: Internal records.
Slide 52: Interest Rate Sensitivity
Interest Rate Sensitivity Rate Shock Scenarios Interest-rate risk mitigation efforts taken over the 3.0% 2.1% past 12 months: 2.0% Net Interest Income % D 1.0% Unwound $900mm of fixed-to-floating loan interest rate 1.0% 0.6% 0.3% 0.4%0.5% swaps 0.0% Purchased $2.8b interest rate floors in two tr
Slide 53: NIM Adjusted for PPP and Liquidity Impact
NIM Adjusted for PPP and Liquidity Impact Estimate that both PPP and Liquidity Build negatively impacted 2Q20 NIM by 0.32% (1) Average balances of nonperforming loans are included in the above amounts. (2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $6.9 million
Slide 54: Current Expected Credit Losses
Current Expected Credit Losses 12/31/2019 January 1, 2020 March 31, 2020 June 30, 2020 Probable Incurred Losses CECL Adoption CECL CECL Allowance for Credit Losses Amount % of Loans Amount % of Loans Amount % of Loans Amount % of Loans Commercial and Industrial $ 36,112 0.57% $ 59,114 0.94% $ 88,032
Slide 55: Balance Sheet – Capital
Balance Sheet – Capital • Preferred Share Issuance – 1Q20 4Q19 3Q19 2Q19 1Q19 • 9.0 mm depositary shares representing 1/40th of a share of Series B noncumulative, perpetual preferred stock issued during the # of shares 1,015,039 228,533 199,032 130,888 543,585 second quarter repurchased • Proceeds t
Slide 56: Asset Quality
Asset Quality AS A % OF TOTAL AS A % OF TOTAL AS A % OF TOTAL ($ in millions) June 30, 2020 Mar. 31, 2020 June 30, 2019 LOANS LOANS LOANS Past Due Loans (*) Nonaccrual loans $30,505 0.14% $31,285 0.15% $41,282 0.22% Accruing loans 20,706 0.09% 33,780 0.17% 40,199 0.21% Total past due $51,211 0.23% $
Slide 57: Income Statement – Net Interest Income
Income Statement – Net Interest Income • “In-the-Money” client interest rate floors increased $699 million in 2Q20 from March due to down interest rate shock of 150 basis points • During 4Q19, we entered into a $1.5 billion LIBOR rate floor with a five year term. This floor now carries an unrealized
Slide 58: Income Statement – Revenue per Common Share
Income Statement – Revenue per Common Share LTM Revenue Per Common Share Growth vs. Peers $15.00 14.5% 15.0% 13.0% 13.0% 13.0% 11.9% 11.9% 11.6% 11.6% $14.05 $14.00 11.3% $13.87 12.0% $13.54 $13.44 Y/Y Revenue per Share Growth 7.3% 8.8% $12.92 $13.00 8.8% 9.0% Revenue per Share 7.3% $12.42 6.5% 6.4%
Slide 59: Income Statement – Mortgage Volumes
Income Statement – Mortgage Volumes $625,000 4.00% $550,000 3.50% $475,000 3.00% $400,000 2.50% $325,000 2.00% $250,000 1.50% $175,000 1.00% $100,000 0.50% $25,000 0.00% Purchase Money Refinance Gross fees as a % of loans originated 59
Slide 60: BHG Financials
BHG Financials Strong equity to support business model • Strong performance in 2Q20 despite meaningful increase in reserves • Strong cash position to provide increased liquidity and, thus, better prepare for any potential Pandemic losses 60 Source: BHG Internal Data, unaudited
Slide 61: Income Statement – Expenses
Income Statement – Expenses $500.0 Employee Retention^ $449.8 $441.0 $400.0 $427.5 $426.9 $424.9 $419.9 $414.3 $412.8 $415.9 $404.6 2Q18 to 2Q20 $300.0 94% (increase of $3,100 per associate) $200.0 $216.9 $215.6 $214.8 $208.1 2Q18 to 2Q20 $206.2 $205.4 $205.0 $199.0 $202.3 $201.0 $100.0 (increase of
Slide 62: Pre-Tax Pre-Provision Net Revenue Trends
Pre-Tax Pre-Provision Net Revenue Trends Despite difficult operating environment PPNR grows meaningfully in 2Q20. Net PPNR per Share $2.50 $2.00 $1.50 $1.00 $0.50 $- 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Note: For a reconciliation of the above Non-GAAP financial measures to the comparabl
Slide 63: Pinnacle COVID-19 Response
COVID-19 Response March 6 - Pinnacle restricts business April 1 – Roll out training for accepting May 1 – Terry Turner sends all associate June 15 – Pinnacle re-opens lobbies of 9 July 3 – Pinnacle delays further lobby travel, inventories personal travel, asks and entering PPP applications email wit
Slide 64: Pinnacle and COVID-19
Pinnacle and COVID-19 Cumulative Cases Case Rate per 100k • Generally, most markets in which we operate are in the second or third Atlanta PNFP Markets July 5, 2020 45,838 Population 6,020,364 July 5, 2020 761.38 phase of reopening, with some reverting from phase three to phase two. Charlotte 23,315
Slide 65: Pinnacle and COVID-19: PPP Loans
Pinnacle and COVID-19 • Significant positive feedback from client base COVID-19 Impacted Approved • Roughly 14,000 applications and $2.3B in funding Industries Dollars • Fees +$72mm Hotel $ 42,392 Restaurant 179,220 Retail 187,392 PPP Loan Stratification Table as of 6/30/2020 Entertainment 53,099 (d
Slide 66: Income Statement: Reconciliation of Non-GAAP Financial Measures
Income Statement Reconciliation of Non-GAAP Financial Measures 66
Slide 67: Income Statement: Reconciliation of Non-GAAP Financial Measures
Income Statement Reconciliation of Non-GAAP Financial Measures 67
Slide 68: Peer Group
Peer Group Institution Name Ticker City, State Pinnacle Financial Partners PNFP Nashville, TN Associated Banc-Corp ASB Green Bay, WI BancorpSouth, Inc. BXS Tupelo, MS Bank of the Ozarks, Inc. OZRK Little Rock, AR Chemical Financial Corporation CHFC Midland, MI Cullen/Frost Bankers, Inc. CFR San Anto
Slide 69: Investor Call
Investor Call SECOND QUARTER 2020 M. TERRY TURNER, PRESIDENT AND CEO HAROLD R. CARPENTER, EVP AND CFO TIM HUESTIS, EVP AND CHIEF CREDIT OFFICER
Pinnacle Financial Partners — Q2 2020 Earnings Presentation on 6ix