On this page of StockholderLetter.com we present the latest annual shareholder letter from PINNACLE FINANCIAL PARTNERS INC — ticker symbol PNFP. Reading current and past PNFP letters to shareholders can bring important insights into the investment thesis.

 •  3/3/2025 Letter Continued (Full PDF)
 •  3/9/2023 PNFP Stockholder Letter
 •  3/11/2024 PNFP Stockholder Letter
 •  More "Banking & Savings" Category Stockholder Letters
 •  PNFP Benford's Law Stock Score = 95

PNFP Shareholder/Stockholder Letter Transcript:

2024 ANNUAL REPORT

BUILDING ON MOMENTUM. POSITIONED TO WIN.
Pinnacle excels in the metrics that we believe matter most to
shareholders because of the way we excite associates and engage clients.
Each element of our formula builds on the success of the last, which is
why we believe Pinnacle is still positioned to win.

DEAR FELLOW
SHAREHOLDERS
For even more on Pinnacle   s success in 2024, including
additional data and videos on deposit strategies, client
successes and more, visit ANNUALREPORT.PNFP.COM.
MANY BANKS SPENT 2024 HOPING. THEY HOPED FOR INTEREST RATE CUTS, HOPED THE ELECTION
WOULD GO THEIR WAY, HOPED FOR A BETTER OPERATING ENVIRONMENT FOR THEIR BUSINESS.
We all know that hope is not a strategy. At Pinnacle, thankfully
we have more than hope to rely on. A better word describes
how we view 2024 now that it   s in the rearview: Momentum.
We worked throughout the year continuing to build on our firm   s
ongoing momentum     our hiring pace and continued efforts
to grow our balance sheet and, most importantly, revenue, fully
diluted EPS and tangible book value per share, because these are
three of the elements we believe result in elevated shareholder
return. Our long-term track record with them has been strong,
and in 2024 we continued that momentum.
LOANS
35.5B

DEPOSITS
42.8B
6.89
1.7B

ADJUSTED DILUTED EPS*

TOTAL REVENUE

TBV PER COMMON SHARE*
56.24

*For a reconciliation of non-GAAP financial measures to their most directly
comparable GAAP measures, visit annualreport.pnfp.com.
These metrics are a result of the simple formula we   ve run since
our founding in 2000.
Excited
Engaged
Associates
Enriched
clients
shareholders
That   s the formula that lifted us to be the No. 1 bank by deposits
in Nashville by 2018 and fueled our expansion into some of the
highest growth markets in the country, like Atlanta, Jacksonville
and Washington, D.C. And it   s what has fueled shareholder returns
that, over the history of our bank, have consistently outperformed
our peers and other regional banks.
PNFP
KRX
Out-Performance
Since IPO
3420%
20%
3400%
10 year
189%
51%
138%
5 year
79%
12%
67%
3 year
20%
-5%
25%
1 year
31%
10%
21%
The reason Pinnacle has a strong track record of success in the
metrics that matter most to shareholders is our similar track
record with associates and clients. They are foundational. Each
element of the formula builds on the success of its antecedent.
That   s how we designed this firm at the very beginning and why
Pinnacle is still positioned to win.

MOMENTUM WITH OUR PEOPLE:
Excited Associates are the Foundation of Our Success
Our success starts with our ability to attract and retain top
talent to serve our clients. By cultivating an exceptional work
environment, one where associates feel empowered, engaged
and excited to contribute to Pinnacle   s mission, our firm is a
powerful magnet for high achievers with loyal client followings
at more hidebound competitors.
In 2024 we demonstrated the power of this foundation with
record-setting results in recruitment and had another banner
year for associate satisfaction and retention.
Sustaining a Great Work Environment: Pinnacle built on its
reputation as one of the top employers in financial services,
ranking No. 1 in nearly every market where we operate and
reaching new heights in the national programs in which we
compete, including:
    No. 11 Best Company to Work For, FORTUNE
    No. 3 Best Workplaces in Financial Services and
Insurance, FORTUNE
    No. 5 Best Bank to Work For, American Banker
    No. 8 Best Workplace for Women, FORTUNE
    No. 9 Best Workplace for Millennials, FORTUNE
Where People Want to Work: In 2024 alone, we successfully
recruited 161 revenue-producing associates, a 50 percent
increase over 2023, further evidence of our ongoing ability
to attract top-tier talent. These associates bring with them not
just expertise but also deep client relationships, which translate
directly into long-term growth for our firm. Our associate
retention rate of 94 percent remains unheard of for banks
our size.
New Revenue Producers Hired
+161
+147
+119
+107
+87
2020
2021
2022
2023
2024
To Build on Our Momentum: The clients our newest associates
brought to Pinnacle accounted for nearly $3 billion in loan
growth, and our associates as a whole grew deposits by $4.3
billion, which we believe represents significant market share
takeaway in 2024. Much of that comes from our strategic
market extensions and growing specialties, both of which help
free us from being overly dependent on the economy for growth.
And those strategies are only possible because of our ability to
attract and retain the talent to execute them at a high level.
Recruiting and Strategic Expansions Drive Loan Growth
2024 Loan Growth $2.8B
$2.6 B
Strategic Expansion
Atlanta, Washington, D.C., Jacksonville, Alabama, Kentucky,
Specialty Lending Areas
$349 M
Legacy Recruiting Impact
New relationship managers hired in legacy markets 2022-27
($169 M)
Legacy Markets
Relationship managers in legacy markets hired prior to 2022
Deposit Market Share*
20
19
19
20
21
15
15
10
19
10
2020
2021
2022
2023
MSAs where we grew market share
2024
MSAs where we grew deposits
*According to FDIC deposit data for the 12 months ended June 30
of the applicable year
See more of Pinnacle   s 2024 market share wins at PNFP.com/Share.
Our commitment to fostering a workplace culture that prioritizes
people and building an environment where people love coming
to work is a core part of why we believe Pinnacle is positioned
to win. By investing in our culture and associates, we continue
to position our clients for success, which we believe drives more
value for shareholders.
MOMENTUM IN CLIENT ENGAGEMENT:
Engaged Clients Drive Sustainable Growth
Success in banking comes as a result of relationships. It   s not
enough just to acquire clients. Loyalty is what leads to long-term,
sustainable wins, and that loyalty must be earned by delivering
on promises and giving them more than they could ever expect
from any other financial partner.
In 2024, Pinnacle clients continued to honor us with their loyalty
and business because of our consistent overperformance in the
measures that matter most to them.
Distinctive Service: Every interaction between a bank and its
client matters. Pinnacle once again achieved industry-leading
Net Promoter Scores (NPS) and earned 30 Crisil Coalition
Greenwich Best Bank Awards for small business and middle
market banking     more than any other bank in the nation.
Crisil Coalition Greenwich Research
83
Net Promoter Score
+24
points over our
nearest competitor
Highest in the South
Source: Crisil Coalition Greenwich,
4Q24, total Pinnacle footprint
among companies with
$1-500MM annual revenue
30
1
NO.
2025 Crisil Coalition
Greenwich Best Bank Awards*
IN THE NATION
Pinnacle leads the South in client
perception and loyalty, including:


Overall Satisfaction
Ease of Doing Business
Bank You Can Trust
Values Long-term Relationships
*Based on 2024 data
See the full list of Pinnacle   s awards from Crisil
Coalition Greenwich at PNFP.com/Greenwich.

Paired with Effective Advice: Clients tell us and third-party
researchers that our financial advisors proactively provide
advice, give insights they wouldn   t otherwise have and are
responsive and prompt, making us a bank they can trust.
Pinnacle leads the South in all Relationship Manager
categories, including:




Overall Satisfaction with Relationship Manager 88%
Timely Follow-up on Requests 87%
Proactive Advice and Innovative Ideas 79%
Knowledge of Cash Management Services 89%
Coordination of the Bank   s Product Specialists 85%
Understanding Your Industry 75%
Data and Analytics-driven Insights 76%
Source: Crisil Coalition Greenwich, 4Q24, total Pinnacle footprint among
companies with $1-500MM annual revenue
That Meets All Their Needs: Since Day One, we set out to meet
all the client   s needs. As we   ve grown, so have they, and we   ve
been intentional about keeping pace. Our growing specialty
loan and deposit programs continue to open new industry
possibilities that bring aboard new business and give our longstanding clients more and better solutions to reach their goals.
Pinnacle leads the South in all Credit Process
categories, including:
    Willingness to Extend Credit 83%
    Digitizing the Credit Process 74%
    Competitive Pricing 75%
Source: Crisil Coalition Greenwich, 4Q24, total Pinnacle footprint among
companies with $1-500MM annual revenue
While Making It Easy to Do Business: At $23.5 million in
technology-related capital expenditures in 2024, we continue
to grow our ability to serve clients. By combining competitive
technology with our unbeatable service, we ranked No. 1 in our
footprint for the overall digital experience, the capabilities of
our cash management platform and the ability of our people
to assist with it.
Pinnacle leads the South in all Cash Management
categories but one, including:


Overall Digital Experience 82%
Quality of Customer Service 82%
Domestic Product Capability 80%
International Capabilities 72%
Source: Crisil Coalition Greenwich, 4Q24, total Pinnacle footprint among
companies with $1-500MM annual revenue
As we look ahead, our focus on the client experience won   t
change. It works, and we intend to continue building on the
momentum that we have achieved from prioritizing people. It
powered year-over-year deposit market share gains in 20 out of
27 MSAs measured by the FDIC* and cultivates loyalty that has
historically allowed our performance to transcend rate changes
and economic conditions     with shareholders reaping the rewards.
*As of June 30, 2024
MOMENTUM IN OUR RETURNS:
Sustained Growth Enriches Shareholders
Pinnacle   s model doesn   t just drive associate and client success
    it delivers for shareholders again and again through consistent
financial performance, strategic growth and disciplined capital
management. Our ability to deliver returns to our investors is
a result of our relentless focus on the metrics that we believe
matter most to value creation: revenue growth, fully diluted
EPS growth and tangible book value per share growth.
In 2024, the core of our strategy to return value to shareholders
again showed that Pinnacle has been a winning and advantaged
stock since it was listed on NASDAQ in 2002.
Balance Sheet Growth: Without sustainable loan and deposit
growth, it   s incredibly difficult to reliably grow revenue,
earnings and tangible book value per share. Strategic expansion
fueled $2.6 billion in loan growth in 2024     even while we
intentionally focused on reducing our commercial real estate
exposure     and deposits grew by $4.3 billion, which we believe
showcases our ongoing ability to take a significant amount of
market share from our vulnerable competitors.
That Fuels Revenue: Between 70-80 percent of our earnings
will always be derived from the margin on our balance sheet
volumes, and our net interest margin was 3.16 percent for the
year. Fees from wealth management and other services added
to our growing net interest income to result in more than
$1.7 billion in total revenue for 2024.
To Drive EPS and TBV: Our key performance indicators for
earnings growth show a reliable long-term track record with a
steady trajectory. Looking just at the last five years, our CAGRs
on revenue (12.5 percent), fully diluted EPS (37.3 percent) and
tangible book value per share (11.1 percent)* show Pinnacle
as a consistent performer that we believe is positioned for
continued growth.
While Protecting Our Assets: Nothing would be more damaging
to EPS and TBV growth than outsized loan losses. Loan quality
statistics confirm the ongoing strength of our loan portfolio. Net
charge offs in 2024 were 0.23 percent, and our classified asset
ratio and non-performing asset ratio were 3.8 percent and
0.42 percent, respectively.
Net Charge Offs
.23%
Classified Asset Ratio
3.8%
NPA/Loans & ORE
.42%
Looking ahead, our focus remains on accelerating our
momentum     driving profitable growth, enhancing
shareholder value and extending our track record of long-term
outperformance versus our peers. Our ability to sustain and
build upon the success of 2024 should position Pinnacle to
capture even greater market share, expand our balance sheet
size and strength and further amplify returns. With a relentless
focus on strategic execution and financial discipline, we believe we
are well positioned to turn today   s momentum into tomorrow   s
sustained success.
*For a reconciliation of non-GAAP financial measures to their most directly
comparable GAAP measures, visit annualreport.pnfp.com.



 3/3/2025 Letter Continued (Full PDF)