Pinnacle Financial Partners, Inc. · NYSE:PNFP
Pinnacle Financial Partners — Raymond James Institutional Investors Conference 2005
26 slides from Pinnacle Financial Partners's conference presentation, Mar 8, 2005
Slide 1: Raymond James Institutional Investors Conference March 6-9, 2005
Raymond James Institutional Investors Conference March 6-9, 2005
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 4+ years old Total assets at December 31, 2004 - $727 million NASDAQ National Market - PNFP Market cap at February 18, 2005 - $186 million Insider / employee ownership - 15% Institutional ownership - 22% Sour
Slide 4: Company Profile (source: MSNBC.com)
Source: MSNBC.com Company Profile
Slide 5: Valuation Summary
Stockholders' equity as of December 31, 2004 $ 57,880,000 Shares outstanding 8,389,000 Book value / share $ 6.90 Closing price at February 18, 2005 $22.12 Price to tangible BV / share 321% Price to 2004 EPS ($0.61 per share) 36 Price to 2005 Projected EPS ($0.88 per share*) 25 Price to 2006 Projecte
Slide 6: Valuation Summary: High Growth Peer Group Comparisons
Valuation Summary High Growth Peer Group Comparisons Excellent value based on asset and earnings growth profile
Slide 7: The Nashville Market
The Nashville Market Large, fast growing, metropolitan market Vulnerable Competition Extremely attractive competitive landscape Continued Rapid Growth Existing sales force would produce assets of $1.2 billion Growth strategy to further accelerate asset growth Background and Growth Opportunity
Slide 8: 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 Background and Growth Opportunity
Slide 9: Large, Fast Growing, Metropolitan Market: Nashville is home to
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 10: Large, Fast Growing, Metropolitan Market: job growth
Source: Nashville Chamber of Commerce, Bureau of Labor Statistics Large, Fast Growing, Metropolitan Market Nashville's job growth has outpaced its Southern city peers. Background and Growth Opportunity Fiscal Year 04 Fiscal Year 03 Number of Jobs Orlando 935,442 914,808 20,634 Nashville 685,400 674,
Slide 11: Large, Fast Growing, Metropolitan Market: rankings
Top 10 Economic Development Agency Five Star City for Logistics Top 10 Digital City Least Costly City for Businesses Top 10 City for African-Americans to Live, Work and Play America's Friendliest City America's Hottest Market (for relocating or expanding) Source: Site Selection, Expansion Management
Slide 12: Extremely Attractive Competitive Landscape: Davidson County Market Share
Source: FDIC Extremely Attractive Competitive Landscape Market Share - Davidson County - June 2004 Background and Growth Opportunity Total Deposits Total Deposits Total Share Total Share Rank Institution ($000) ($000) (%) (%) Predecessor Bank Predecessor Bank 1 AmSouth Bancorp (AL) $ 3,447,443 $ 3,4
Slide 13: Extremely Attractive Competitive Landscape: Nashville MSA Deposit Share
Source: FDIC Extremely Attractive Competitive Landscape Market Share of Deposits in the Nashville MSA Background and Growth Opportunity 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 6/1/2004 AmSouth 24.09 23.96 24.52 26.23 27.63 23.3 19.8 18.6 18.9 18.8 SunT
Slide 14: Existing Sales Force Would Produce Assets of $1.2 Billion
Liabilities + Number Assets Equity 7 Branches $ 130 MM $ 325 MM Financial Advisors 680 MM 640 MM Institutional 420 MM 265 MM Total Assets $ 1,230 MM $ 1,230 MM Existing Sales Force Would Produce Assets of $1.2 Billion Existing Capacity Background and Growth Opportunity
Slide 15: Seasoned Management and Team of Professionals
Existing Sales Force Would Produce Assets of $1.2 Billion 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 Ad
Slide 16: Growth Strategy to Further Accelerate Asset Growth
Significant room to grow market share in Nashville Background and Growth Opportunity 37% increase in the number of Financial Advisors by 12 / 2006 ? 3. Knoxville 57% increase in the number of branch offices by 12 / 2006 Urban community bank with significant potential for market extension Growth Stra
Slide 17: The Power of Execution: Growing Volumes
Total Deposits (EOP) Total Loans (EOP) Net Income The Power of Execution (in millions) $571 $472 $0 $100 $200 $300 $400 $500 $600 1-01 2-01 3-01 4-01 1-02 2-02 3-02 4-02 1-03 2-03 3-03 4-03 1-04 2-04 3-04 4-04 CAGR 1yr 30% 3yr 62% CAGR 1yr 46% 3yr 52% Total Assets (EOP) $0 $200 $400 $600 $800 1-01 2
Slide 18: The Power of Execution: Growing Profitability
Return on Assets Return on Average Equity Net Interest Margin The Power of Execution 0.00% 0.25% 0.50% 0.75% 1.00% 1-02 2-02 3-02 4-02 1-03 2-03 3-03 4-03 1-04 2-04 3-04 4-04 0.95% 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% 1-02 2-02 3-02 4-02 1-03 2-03 3-03 4-03 1-04 2-04 3-04 4-04 11.6% 3.00% 3.25% 3.50% 3.7
Slide 19: The Power of Execution: Growing Soundly
Net Charge Offs Non Accrual Loans to Total Loans Weighted Average Commercial Loan Risk Rating The Power of Execution 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 2001 2002 2003 2004 0.27% 0.00% 0.25% 0.50% 0.75% 1.00% 2001 2002 2003 2004 0.12% 10 point scale; 1 through 6 = "pass" credits 7 through 10 = criti
Slide 20: The Power of Execution: Building Operating Leverage
Annualized Revenue per Associate The Power of Execution Total Assets per Associate $251,300 $150 $175 $200 $225 $250 $275 1-02 2-02 3-02 4-02 1-03 2-03 3-03 4-03 1-04 2-04 3-04 4-04 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 1-02 2-02 3-02 4-02 1-03 2-03 3-03 4-03 1-04 2-04 3-04 4-04 $5.96 million Bu
Slide 21: Consistent Reliable Growth in Earnings
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 22: The Power of Execution: Asset Growth
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Plan 100 200 300 400 500 600 700 800 900 1000 Actual 175 305 498 727 Asset Growth The Power of Execution
Slide 23: Achievements
Largest, locally-owned financial institution in Nashville Fastest growing of 185 banks chartered in the US during 2000 Opened 7 branch offices in four years Hired 129 experienced associates Retained 98% of associates annually Twice received recognition as the Best Place to Work in Nashville by the N
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 Markets / Offices 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 Continued addition of new markets and people Strong asset quality Why Pinnacle?
Slide 26: Pinnacle Financial Partners
Pinnacle FINANCIAL PARTNERS
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