Pinnacle Financial Partners, Inc. · NYSE:PNFP
Pinnacle Financial Partners — Merger or Acquisition (April 2015)
28 slides from Pinnacle Financial Partners's merger presentation, Apr 8, 2015
Slide 1: Expansion into Chattanooga: Acquisition of CapitalMark Bank & Trust
Exhibit 99.2 Expansion Acquisition M. April Terry 8, 2015 Turner, into of CapitalMark Chattanooga, President and Bank TNCEO & Trust Harold R. Carpenter, EVP and CFO
Slide 2: Safe Harbor and Additional Information
Safe All Securities other Pinnacle’s statements looking the integration required (10) complete economic, Current (“CapitalMark”) or Additional In connection proposedmerger) INVESTORS BE PROPOSED Investors may 801 This 2prior otherwise. connection merger statements, FILED Broad the be Harbor communic
Slide 3: Pinnacle's 5 Year Plan to Drive Long-term Shareholder Value
Pinnacle’s PNFP 5Year 1. 2. 3. Completed 4. 35. Expand Increase Increased Continued Horizon is working CRE to Focus assets investment capital Tennessee’s focus Q1’ asset is its toon 15 allocation >longterm class $10B bottom Progress Longterm in BHG other All plan line to four urban which fee Shareho
Slide 4: Chattanooga Is a Significant Market for Pinnacle
Pinnacle Chattanooga Significant 1. 2. 43. First Horizon Regions SunTrust Has 2. Regional 3.isTargeted Regions SunTrust an 1. important Bank Bank 2. Four 3. of SunTrust Regions Competitors America Urban piece of 2. Markets 3.1. SunTrust the Regions First puzzle Horizon 1. First Horizon
Slide 5: CapitalMark's Attractive Transaction Rationale
CapitalMark CapitalMark’s 5-Attractive Approximately Largest 5year Q1’15: FY 4th 6th $7+ Immediately Less2014: inbillion than Loan Nashville Chattanooga Knoxville 1.00% local financial 0.83% 2%in Transaction is and accretive market commercial bank dayone an pro ROAA, 20% Deposit ideal ROAA, forma im
Slide 6: CapitalMark Has Produced Pinnacle-like Organic Growth
CapitalMark Since Assets $968 $780 $828 $718 $464 $584 $315 Deposits $1,000 $781 $840 $750 $500 $52 $573 $250 $336 $0 2009 6Source: $02010 $765 $662 $459 $391 $328 $250 $77 $673 $406 $25 its Loans $930 $100 SNL founding Tangible $80 $750 $500 $685 $50 2011 $1,000 is Financial, an $40 2012 $363 $75 I
Slide 7: CapitalMark Net Income, Margin, Efficiency and ROAA
CapitalMark $10,000 $8,000 1.00% $9,042 $6,448 0.83% $6,000 $4,913 0.60% $4,000 $2,674 $2,000 $0 Net 4.5% 4.2% 3.9% 3.5% 3.6% 3.3% 3.0% 2009 Source: Note: FY 7to Common 0.00% 2012 Income Interest 2010 75.0% 68.9% 4.0% 3.8% 3.6% 60.0% 55.0% 50.0% Dollars $7,185 0.80% $5,629 0.61% $3,129 0.40% 0.20% S
Slide 8: CapitalMark's Disciplined Credit Culture
CapitalMark CapitalMark’s NPLs 4.1% 5.0% 3.0% 4.0% 2.3% 0.9% ALLL 2.0% 1.5% 1.4% 1.2% 1.3% 1.0% 0.1% 0.5% 0.0% 2009 8Source: 2010 4.0% 2.7% 2.4% 1.7% 1.4% 1.1% 0.8% 1.8% 1.3% 1.2% 1.0% 0.5% 0.3% 0.2% 0.0% //Loans Gross SNL2011 3.7% 1.9% 1.5% 1.0% is Financial, NPAs Loans disciplined an2012 Ideal /NC
Slide 9: CapitalMark vs De Novo Banks Growth
CapitalMark $1,000 Assets $900 Loans $800 Deposits $710 $700 $400 $407 $500 $491 $600 $100 $200 $205 0$300 $0 Source: Year Note: 2008 9or1merged 2 with Loans Deposits $718 $357 $40 3 Bank De De Assets 4SNL 5?Novo Novo total banks De 6level CapitalMark 7vs is Financial CapitalMark Novo 7.75 ?aan asse
Slide 10: CapitalMark's Bank Model Matches PNFP's Long-term Targets
CapitalMark’s CapitalMark NIM NII NIE Efficiency Ratio ROAA ROACE Q1’15 NCOs FY 3yr Loans Source: Note: 10 2014 Avg //AA FY AA Bank /0.01 3.85 0.38 2.40 59.8 1.00 11.70 FY Avg SNL 3.71 0.13 2.40 61.4 0.82 9.83 0.37 FY 2014 58.4 0.46 (1) FY 2014 % level 2014 FY % is Bank Financial, 2014 ?? 0.2% 3.81
Slide 11: Pinnacle Attacks Market Share in Nashville and Knoxville
10 CapitalMark Pinnacle Nashville 2014 4Rank Pinnacle Market Institution Franklin and Knoxville Financial Positions CapitalMark Share 2014 Financial 2014 Partners 2000 PNFP Market are Network Change to Inc. “market?best” Attack Share 9.36 2Rank Inc. Regionals % 2.25 1.67 Institution at?% taking 2.25
Slide 12: CapitalMark's Banker Team Is Highly Experienced
CapitalMark’s The Kenny R. Banker Average Source: 12 Craig Ryan CapitalMark C. Years 1Company 2 3 4 5 6 7 8 9Murphy Years Holley 41 36 28 27 24 23 20 18 Dyer Banker Banker Commercial team of 37 32 33 Experience: Team Documents Banker Banker of Banker 13 14 15 16 17 18 19 20 21 Years relationship 14
Slide 13: CapitalMark's Commercial Loan Mix
5.2% CapitalMark’s PNFP 15.7% 38.5% 36.8% 18.0% 13.0% 3.5% 23.3% 16.6% CapitalMark 7.0% 25.7% 4.0% 13.7% 18.6% 17.5% 1.8% Commercial loan 16.0% 3.9% Pro mix 9.2%Forma highlights 4.8% Strategy 7.3% itsiscommercial Like Pinnacle’s orientation Loans Construction 1?4 Multi?Family CRE Consumer C&I Total
Slide 14: CapitalMark's Deposit Mix
9.0% CapitalMark’s PNFP 27.6% 19.3% 63.4% 54.3% CapitalMark Deposits 11.4% 26.4% 62.1% Non?interest Int. Time Total Source: Note: 14 Bearing Deposits Financial SNL Commercial deposit ($000)26.5% Trans. BearingPro Financial; $4,782,605 431,144 data Deposits & mix Forma highlights 9.0%Strategy as$1,32
Slide 15: Transaction Consideration and Value
Consideration Transaction Value(1) CapitalMark Leadership •Expected (1): 15Fixed 90% Options 9.7% $22.31 Price 1R. Late PNFP Board Based Craig Q3’ Stock /fully exchange shareholder Q1 per Closing rolled?over seat Holley 2015 on Head) ’15 •Structure diluted share; /Group Price CapitalMark’s 10% – Ann
Slide 16: Transaction Consideration and Purchase Accounting
Transaction Consideration Purchase Accounting •Adjustments Cost Knoxville —Approximately Merger 16 Expenses 3.3 Savings—Eventual $16 30% million million cost Related • franchise Mark savings Assumptions •PNFP •Cash Mark Core • to $11.5 80% Consideration, Common loan to deposit OREO phase?in million
Slide 17: Comprehensive Key Risk Due Diligence
Comprehensive Key Risk CRM, loan Credit segments. Asset Sensitivity Non?core liquidity should Compliance EWRM process IT operational •integration Personnel understanding and positively policies 17Key Detail Deposit Compliance Pinnacle &Policies Focus portfolio. Management Operations /risk etc. •fort
Slide 18: Financial Impact: EPS, Tangible Book Value, Capital
Financial EPS Tangible Value •Pro Capital IRR 18 ~2.5% ~4.5% ~9% ~11.5% Forma •Impact Approximately Impact TCE accretive Book Total Impact •/~9.5% TA • Accretive •Capital Dilution inLeverage 2016 2017 20%to atIRR tangible close Ratioof approximately book value in 2.5 1.7% years
Slide 19: Appendix
•Appendix Overview toofPNFP CapitalMark 5?year Financial CapitalMark Summary Management ofBank & Trust Biographies ••19 Deposit Addition Chattanooga Market Board andShare Tennessee Directors Market – Tennessee MSAs Demographics
Slide 20: Overview of CapitalMark
•20 Overview CapitalMark PNFP Q1’15 Assets ROAA NPAs TCE • Founded 4/ branches /TA Results $968 Assets 1.00 Seasoned8.3 offinancial Commercial Strong Source: SNL % Loans CapitalMark Bank in % 1.0 ROAE 2007 Leverage %& 765Trust management9.53 Deposits business Financial; Bank 10.5 strategicallyNIM te
Slide 21: 5-Year Financial Summary
5?Year For Dollars Balance Deposits Gross Tangible Capital Tier Total Asset NPLs NPAs Reserves NCOs Earnings Net Efficiency Non?Interest ROAA ROAE Source: 21 the Loans Income Interest 1Assets Equity Capital Quality (Incl. Loans Leverage Capital /7.00 0.75 Financial Year in Average SNL Sheet Common 4
Slide 22: CapitalMark Management Biographies
CapitalMark degree at the North for Federal chair Advisory R. Chairman, and Officer Things Mr. from Award Advanced City MidSouth management in Department Chattanooga School Kenneth Banking Source: President 22 Louisiana 1998. Craig the Center Holley Dyer Chief President the ofCarolina. during bank’s
Slide 23: CapitalMark Management Biographies (continued)
CapitalMark Mr. Corporate School 1982 corporate department Regional Metropolitan Neighbors for Ryan Business Source: Head 23 the Murphy with Murphy Boy of Company Unit President banking Banking Finance First of head Scouts, serves Management YMCA Chattanooga Group Tennessee ofDocuments officer. and
Slide 24: Charles Brock Biography
Addition Charles and Partner Southeast. Additionally, helping In markets. in marketing banking Charlie Director member Source: 24 2006 1998, the of entrepreneurial Brock fund to Company E. experience of Haiti, he As toFourBridges Australian and He Brock the helped PNFP the and Charlie has Organizati
Slide 25: Chattanooga Economic Drivers
•25 Chattanooga Economic Diversified time No Volkswagen 2008 indirect in Source: Labor $1 Over business ofEstimated the Over people sales Tourism Tennessee billion in Drivers industry Market is $1Tennessee’s •Chattanooga 28,000 Statistics, Corporations 3,200 generating 2014 supplier Company over typ
Slide 26: Top 20 Tennessee MSAs Deposits and Demographics
Total20 Deposits Top Nashville, Memphis, Knoxville, Chattanooga, Kingsport?Bristol?Bristol, Clarksville, Johnson Jackson, Cleveland, Morristown, Cookeville, Tullahoma?Manchester, Sevierville, Greeneville, Crossville, Athens, Shelbyville, Lawrenceburg, McMinnville, Dyersburg, Tennessee United Source:
Slide 27: Pro Forma Tennessee Deposit Market Share
165Pro Deposit Tennessee Total Deposits Rank Market Institutions($M)(%) Market Regions Share June ‘14 Share Financial • –National Tennessee Corp. 17,312 14.18 743212 Forma 9814Wells 10 11 First Bank First Fargo Home Wilson Fifth Horizon SunTrust Pinnacle 5,416 U.S. BB&T South & Banks ofFederal Ameri
Slide 28: Deposit Market Share: Chattanooga, Knoxville, Cleveland
276543 First Deposit Chattanooga, Total Deposits 1Rank Market Institutions($M)(%) Horizon Market SunTrust Share WTotal TN?GA Regions Deposits National Share Banks Market &(MSA) –Corp. MSAs FinancialShare Corp. Inc. Rank Total 1,594 June Corp. Deposits 2,061 Institutions($M)(%) Market ‘14 18.74 1,155
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