Pinnacle Bancshares, Inc. · OTC:PCLB
Pinnacle Bancshares — Q2 2025 Earnings Presentation
53 slides from Pinnacle Bancshares's earnings presentation, Jul 16, 2025
Slide 1: Investor Call Second Quarter 2025
Investor Call SECOND QUARTER 2025 JULY 16, 2025 Time: 8:30 AM CT Webcast: www.pnfp.com (investor relations) M. TERRY TURNER, PRESIDENT AND CEO HAROLD R. CARPENTER, EVP AND CFO
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, total revenues, net income to common shareholders, earnings per diluted common share, revenue per diluted common share, PPNR, efficiency ratio, noninterest
Slide 4: Shareholder Value Dashboard: GAAP measures
Shareholder Value Dashboard 2Q25 summary results of key GAAP measures Total Revenues FD EPS Net Income Available to Common Shareholders Total Loans Total Deposits Book Value per Common Share (millions) (in millions) Classified Asset Ratio NCOs NPA/ Loans & ORE Pre-COVID* PNFP’s Median Quarterly Perf
Slide 5: Shareholder Value Dashboard: non-GAAP measures
Shareholder Value Dashboard 2Q25 summary results of key non-GAAP measures Adjusted Pre-Tax Pre-Provision Total Revenues* FD EPS* Net Income* CAGR 11.0% CAGR 4.9% CAGR 7.1% Total Loans Total Core Deposits Tangible Book Value per Share** (millions) (millions) CAGR 11.1% CAGR 10.9% CAGR 10.2% Classifie
Slide 6: Pinnacle Has Been a Top-Quartile Top- and Bottom-Line Performer
Pinnacle Has Been a Top-Quartile Top- and Bottom-Line Performer Note: Company filings, S&P Global Market Intelligence and FDIC. (1) Growth rates reflects LTM Q1’15 through LTM Q1’25. 6
Slide 7: Long Track Record of Peer-Leading NII and Core Deposit Growth
Long Track Record of Peer-Leading NII and Core Deposit Growth… Note: Company filings, S&P Global Market Intelligence and FDIC. (1)Growth rate reflects LTM Q1’15 through LTM Q1’25. 7 (2)Growth rate reflects quarter average for Q1’15 and Q1’25. (3)Growth rate reflects non-time deposits for Q1’15 and Q
Slide 8: Including Outperformance During the Current Rate Cycle
Including Outperformance During the Current Rate Cycle… Note: Company filings, S&P Global Market Intelligence and FDIC. (1)Growth rate reflects LTM Q2’23 through LTM Q1’25. 8 (2)Growth rate reflects quarter average for Q2’23 and Q1’25. (3)Growth rate reflects non-time deposits for Q2’23 and Q1’25. C
Slide 9: 2020-24 Vintage Hiring Should Deliver Continued Growth that Outperforms Peers
2020-24 Vintage Hiring Should Deliver Continued Growth that Outperforms Peers Annual Revenue Producer Hires Illustrative Total Portfolio for RM Hires 2020 – 2024 ($bn)* ~$19 12% CAGR ~$18 161 ~$18 147 ~$14 Record hiring year 120 ~$10 107 90 ~$7 ~$3 ~$1 – 2020Y 2021Y 2022Y 2023Y 2024Y 2021Y 2022Y 202
Slide 10: Attracting Talent and Executing the Service Model are Key to Sustainable Growth
Attracting Talent and Executing the Service Model are Key to Sustainable Growth PNFP dominates virtually all key drivers of satisfaction in its 8 state footprint Talent Service Model Market Market Key Driver Peer Comparison Key Driver Peer Comparison Leader Leader Overall Satisfaction with Ease of D
Slide 11: Market Share Gains Continued to Drive Loan Growth
Market Share Gains Continued to Drive Loan Growth Linked-quarter annualized growth in average loans was 10.3% in Q2 Average Loan Growth and Yields 6.26% Fixed Rate Loan Maturities / Cash flow $37,500 7.00% $1,200 5.20% $36,968 $36,042 6.50% 5.14% 5.10% $34,981 $32,500 $1,000 5.00% $34,082 4.90% $33,
Slide 12: Deposit Growth Remains a Key Strategic Focus for Our Firm
Deposit Growth Remains a Key Strategic Focus for Our Firm Linked-quarter annualized growth in average deposits was 11.3% in Q2 Average Deposit Growth “Up Rate Cycle” “Down Rate Cycle” Cumulative Betas Dec. 31, 2021 through Sept. 18, 2024 through $45,000 2.58% 3.25% (EOP rate comparisons) Sept. 18, 2
Slide 13: NIM Increases Modestly Along with Solid Volume Growth
NIM Increases Modestly Along with Solid Volume Growth Net interest income grew at a mid-teen year-over-year pace for the third consecutive quarter Net Interest Income & NIM Quarterly Avg. Securities $400 3.75% $9,500 4.75% 4.44% $9,000 Average Balances ($ in mil.) 4.50% Net Interest Income ($ in mil
Slide 14: Credit Performance Remains Strong in 2Q25
Credit Performance Remains Strong in 2Q25 No significant change in credit metrics between 2Q25 and 1Q25 NCOs NPA/ Loans & ORE 2Q25 Highlights 0.27% • Most credit metrics continued to perform well in comparison to long-term historical averages 0.44% 0.20% 0.17% • Past dues, Classified Assets, Potenti
Slide 15: BHG Financial Overview
BHG Financial Overview Strong YTD earnings of $96M supported by significant growth in originations and solid credit performance Origination Volume ($bn) • BHG provides loans in as little as 3 days from application to $6.0 funding. • A truly diversified funding strategy creates ample liquidity to $4.
Slide 16: 2Q25 Results Provide for Continued Optimism in FY2025
2Q25 Results Provide for Continued Optimism in FY2025 Changes to current outlook trend to the positive, in our view Current 2025 Outlook (as of July 15, 2025) 2024 Results We are modifying our estimate that our EOP loan growth for 2025 will now be 9-11% growth over 2024 Y/Y EOP Loan Growth Y/Y EOP g
Slide 17: Supplemental Information
Supplemental Information Slide # • Balance Sheet 18 • Income Statement 39 • BHG 43 • Non-GAAP Reconciliation 50 • Peer Group 52 17
Slide 18: Balance Sheet – Loan Portfolio
Balance Sheet – Loan Portfolio Net Loan Growth – 2Q25 – Strategic Decisions: • Strategic Expansion - $785 million • Jacksonville, Atlanta, DC, Alabama, Kentucky, Franchise Finance, Equipment Finance • Legacy Recruiting Impact - $287 million • New RMs hired in past 2.5 years other than in our strateg
Slide 19: Balance Sheet – Loan Portfolio Segments
Balance Sheet – Loan Portfolio Segments ($ in millions) Amts. % Amts. % Amts. % Amts. % 2Q25 2Q25 1Q25 1Q25 2Q24 2Q24 2Q23 2Q23 C&I $14,905.3 40.2% $14,131.3 39.1% $12,328.6 36.5% $10,983.8 35.3% CRE – Owner Occ. 4,744.8 12.8% 4,594.4 12.7% 4,217.4 12.5% 3,845.4 12.3% Total C&I & O/O CRE $19,650.1 5
Slide 20: Balance Sheet – Loan Portfolio – Market Segmentation
Balance Sheet – Loan Portfolio – Market Segmentation ($ in millions) TOTAL PINNACLE C&I & O/O CRE CRE & CONSTRUCTION OTHER LOANS Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. 2Q25 2Q24 2Q25 2Q24 2Q25 2Q24 2Q25 2Q24 Nashville $8,600.1 $8,596.5 $4,114.1 $3,802.7 $2,508.9 $2,942.1 $1,977.1 $1,851.7 K
Slide 21: Balance Sheet – Loan Portfolio – CRE Segmentation
Balance Sheet – Loan Portfolio – CRE Segmentation ($ in millions) Total NOO and Multifamily Total Construction Total NOO and Construction Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. 2Q25 1Q25 2Q24 2Q25 1Q25 2Q24 2Q25 1Q25 2Q24 Multifamily $2,393.7 $2,360.5 $2,187.3 $1,484.8 $1,574.7 $1,592
Slide 22: Balance Sheet – Loan Portfolio Lines of Credit
Balance Sheet – Loan Portfolio Lines of Credit ($s in millions) Linked Qtr. 12/31/2023 03/31/2024 06/30/2024 09/30/2024 12/31/2024 3/31/2025 6/30/2025 Change CRE – Investment & Construction Net Active Balance $6,517.26 $6,835.87 $6,539.76 $6,465.36 $6,577.64 $6,471.50 $6,308.09 ($163.41) Net Availab
Slide 23: CRE Appetite by Segment
Balance Sheet – Loan Portfolio 2Q25 NOOCRE & Construction Balances / Total Loans Highlights • Over 91% of NOOCRE Portfolio is in Pinnacle’s 12.0% 10.5% attractive Southeastern demographic markets • Reduced construction and land development loans 10.0% as a percentage of total risk-based capital to 6
Slide 24: Balance Sheet – Asset Quality
Balance Sheet – Asset Quality • Continued strong asset quality with minimal past due PNFP CRE & Construction accruing loans and 97.3% of portfolio graded pass; Accruing PD, Classified, and Non-Accruals incremental increase in nonaccrual due to one Class B multifamily loan in during the first six mon
Slide 25: Multifamily – Loan Portfolio
Balance Sheet Highlights Multifamily – Loan Portfolio (DRAFT) Multifamily Highlights • 95.2% is located within the PNFP footprint 2Q25 Multifamily Balances by Property Location • 47.8% are MF Construction loans (by commitment): 14.0% 12.8% o Average number of units 279 ($20MM+ Construction) 12.0% o
Slide 26: Warehouse – Loan Portfolio
Balance Sheet Highlights Multifamily – Loan Portfolio (DRAFT) Warehouse Highlights • Industrial production primarily focuses on construction opportunities with top-tier development platforms 2Q25 Warehouse Balances by Property Location 12.0% • Conservative loan basis exhibiting an average LTV of 51.
Slide 27: Professional Office Highlights
Balance Sheet Highlights Multifamily – Loan Portfolio (DRAFT) Professional Office Highlights • 93.9% of Professional Office CRE properties are in PNFP market • The concentration in Nashville is primarily due to the participation in the Nashville Yards project (approximately 2Q25 Professional Office
Slide 28: Professional Office LTVs
Balance Sheet Highlights Multifamily – Loan Portfolio (DRAFT) Professional Office Highlights 2Q25 Multi-Tenant Office LTVs 90.0% 83.4% 2Q25 Professional Office 80.0% 70.0% Portfolio by Type 60.0% 50.0% Avg Bal: 6% 40.0% $5.8 MM 9% Avg Bal: 30.0% Avg Bal: $3.0 MM Avg Bal: 20.0% $3.1 MM 7.0% 9.1% $2.2
Slide 29: Allowance for Credit Losses
Allowance for Credit Losses Total Allowance for Credit Losses for loans = $422.1mm or, 1.14% of loans, at June 30, 2025 $ in thousands Allowance for Off-Balance % of Loans Total Credit Losses Sheet At June 30, 2024 $381,601 1.13% (1) $14,469 $396,070 Net Charge Offs ($18,348) 0.22% (2) ($18,348) 3Q
Slide 30: Allowance for Credit Losses
Allowance for Credit Losses ($ in thousands) June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 % of % of % of % of % of Allowance for Credit Losses Amount Loans Amount Loans Amount Loans Amount Loans Amount Loans Commercial and Industrial $187,020 1.25% $183,205 1.30% $
Slide 31: Balance Sheet – Asset Quality
Balance Sheet – Asset Quality AS A % OF AS A % OF AS A % OF ($ in thousands) June 30, 2025 March 31, 2025 June 30, 2024 TOTAL LOANS TOTAL LOANS TOTAL LOANS NPLs and > 90 days Const. and land development $2,294 0.01% $2,252 0.01% $853 0.00% Consumer RE 28,839 0.08% 34,436 0.10% 35,355 0.11% CRE – Own
Slide 32: Balance Sheet – Asset Quality
Balance Sheet – Asset Quality 1.60% Annualized Net Loan Charge Offs by Loan Type 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.23% 0.16% 0.18% 0.20% 0.10% 0.00% -0.20% CRE Construction C&I Consumer RE Consumer and Total other Net Charge Off Rates 2022 2023 2024 YTD 2025 32
Slide 33: Balance Sheet – Asset Quality – 100/300 Test
Balance Sheet – Asset Quality – 100/300 Test ($ in thousands) Description 2Q25 1Q25 4Q24 3Q24 2Q24 1Q24 Loans secured by real estate: Construction, land development, and other loans: 1-4 family residential construction loans $644,847 $664,689 $670,350 $667,600 $678,836 $672,284 Other construction lo
Slide 34: Balance Sheet – Deposit Portfolio
Balance Sheet – Deposit Portfolio Net Deposit Growth – 2Q25 – Strategic Decisions: • Strategic Expansion - $201 million • Jacksonville, Atlanta, DC, Alabama, Kentucky, Franchise Finance, Equipment Finance • Legacy Recruiting Impact – $281 million • New RMs hired in past 2.5 years other than in our s
Slide 35: Balance Sheet – Deposit Portfolio – Market Segmentation
Balance Sheet – Deposit Portfolio – Market Segmentation ($ in millions) TOTAL DEPOSITS CORE DEPOSITS NONCORE DEPOSITS TOTAL PINNACLE TRANSACTION AND MMDA CDs PUBLIC FUNDS and OTHER DEPOSITS 2Q25 2Q24 2Q25 2Q24 2Q25 2Q24 2Q25 2Q24 Nashville $15,536.6 $14,638.1 $13,816.3 $12,980.0 $725.9 $724.8 $994.4
Slide 36: Balance Sheet - Deposit Portfolio
Balance Sheet - Deposit Portfolio Ratio of EOP Uninsured and Uncollateralized Deposits Estimated Liquidity Available for Uninsured Deposits Balances at ($s in millions) Jun. 30, 2025 to Total Deposits 50.00% 42.9% Total Deposits $44,999 38.9% 40.00% 34.4% Less: Insured and/or Collateralized Deposits
Slide 37: Balance Sheet – Bond Portfolio
Balance Sheet – Bond Portfolio 6/30/25 % of 3/31/25 % of 12/31/24 % of 9/30/24 % of Duration Net of Unhedged Security Type Quarter Avg. Yield - TE Balance Portfolio Balance Portfolio Balance Portfolio Balance Portfolio Hedging Duration Treasuries 1,639,366 17.4% 1,526,458 16.9% 1,526,372 17.5% 1,480
Slide 38: Interest Rate Sensitivity
Interest Rate Sensitivity Rate Ramp Scenarios Rate Shock Scenarios 5.0% 5.0% 3.0% 3.0% 3.0% 2.5% 2.4% Net Interest Income % Net Interest Income % 1.5% 1.6% 1.4% 1.4% 1.2% 1.0% 0.6% 0.7% 0.6% 0.7% 0.3% 0.4% 0.4% 0.4% 1.0% 0.6% 0.6% 0.1% 0.1% 0.3%0.3% 0.0% 0.1% -0.1% -0.1% -0.1% -0.1% -0.3% -1.0%
Slide 39: Fee Income
Fee Income Linked- • Core fee categories of wealth management, service charges, and Quarter Year-over- interchange, etc. reflect strong revenue growth in 2Q25 over Annualized Year 2Q24. (dollars in thousands) 2Q25 1Q25 2Q24 Growth % Growth % Service charges $17,092 $17,028 $14,563 1.5% 17.4% • Incom
Slide 40: Noninterest Expense
Noninterest Expense • Salaries and commissions reflect the impact of increased headcount and merit raises since January 1, 2025. Linked-Quarter Yr-over-Yr Annualized (dollars in thousands) 2Q25 1Q25 2Q24 Growth % Growth % • Cash incentives in 2Q25 reflect the resetting of estimated incentive payouts
Slide 41: Income Statement – Revenue Per Share
Income Statement – Revenue Per Share LTM Revenue Per Share Growth* vs. Peers $24.93 $25.00 20.0% 19.0% 18.2% $24.12 17.5% 18.0% $24.00 16.2% 16.2% $23.39 13.8% 16.0% $23.00 13.1% 14.3% 15.2% 16.0% $22.49 12.8% 14.9% 13.9% $21.89 14.0% $22.00 11.3% $21.39 $21.48 $21.45 $21.60 11.7% 11.6% 10.9% $21.09
Slide 42: Tangible Book Value Growth
Tangible Book Value Growth Tangible Book Value per Share** Focused on preserving and growing $58.70 TBV per common share – YTD growth $52.92 $48.85 2025* 8.8% $39.77 $42.08 2024 9.5% 2023 14.8% 2022 5.1% 2021 14.2% **: excluding goodwill, core deposit and other intangible assets *: YTD Annualized Ta
Slide 43: BHG Continues to Leverage its Distribution Network
BHG Continues BHG Credit Quality Continues to Leverage to its & Grow Impress Distribution Network Sophisticated credit scoring models produce impressive results Historically high origination volume in 2Q25 while maintaining tight credit • BHG’s origination volumes rose again in Q2, supported Quarter
Slide 44: BHG Produces Wide Spreads on Bank Auction and Balance Sheet Deals
BHGProduces BHG Credit Quality Continues Wide Spreads to Impress on Bank Auction and Balance Sheet Deals Sophisticated credit scoring models produce impressive results Spreads reaching 10% across all Placement Channels Bank Auction Platform Rates • Bank buy rates continued to decrease, Off Balance S
Slide 45: BHG Reserves Compare Favorably to Trailing Credit Loss
BHG Reserves Compare Favorably to Trailing Credit Loss The trailing 12-month balance sheet loss figure declined to 6.3% in Q2 • Trailing 12-month losses for off-balance sheet loans total 7.7% including the Reserves and Losses for Off B/S Loans (TTM) impact of loans where borrower elects to prepay. T
Slide 46: BHG has Increased Focus on Higher FICO Originations
BHG has Increased Focus on Higher FICO Originations Over 80% of Q2 2025 Originations were originated to FICO scores of 700+ Originations • BHG continues to refine and FICO Mix ($ mm) Cumulative Net Loss Curves tighten its credit underwriting: 2015 $456 • Losses in certain risk classes, particularly
Slide 47: BHG Has Diverse, Growing Funding Channels
BHGHas BHG Credit Quality Diverse, Continues Growing toChannels Funding Impress Sophisticated credit scoring models produce impressive results Proactive management of placement channels continues to provide flexibility to BHG’s platform Loan Sale Auction Over 1,690 banks in network. 759 unique banks
Slide 48: BHG Financials
BHG Financials At Jun 30, At Mar 31, At Dec 31, ($'s in thousands) ($'s in thousands) 2Q 2025 1Q 2025 4Q 2024 2025 2025 2024 Cash and Cash Equivalents 592,500 762,815 578,067 Interest Income $ 136,144 $ 134,494 $ 129,220 Loans Held for Investment 2,664,514 2,655,603 2,589,084 Allowance for Loan Loss
Slide 49: Relationship Manager Portfolio Size by Tenure
Relationship Manager Portfolio Size by Tenure Current Average Portfolio Sizes by RM Tenure ($mm) Year RMs Hired* 2020 52 2021 73 2022 75 2023 55 2024 103 * Represents revenue producer hires with loan and deposit portfolios. 49
Slide 50: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 50
Slide 51: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 51
Slide 52: 2025 Peer Group
2025 Peer Group Institution Name Ticker City, State Pinnacle Financial Partners, Inc. PNFP Nashville, TN Associated Banc-corp ASB Green Bay, WI Bank OZK OZK Little Rock, AR Bank United Inc. BKU Houston, TX BOK Financial Corp. BOKF Tulsa, OK Cadence Bank CADE Tupelo, MS Comerica Inc. CMA Dallas, TX C
Slide 53: Investor Call
Investor Call SECOND QUARTER 2025 M. TERRY TURNER, PRESIDENT AND CEO HAROLD R. CARPENTER, EVP AND CFO