Friday, October 10, 2008

Pinnacle Grows Market Share and Total Deposits Faster Than Larger Regional Bank Competitors in Nashville and Knoxville

(BUSINESS WIRE)--Pinnacle Financial Partners Inc. (Nasdaq/NGS: PNFP) has grown market share and total deposits faster than its larger regional bank competitors, according to the Federal Deposit Insurance Corporation (FDIC) report for June 30, 2007, through June 30, 2008.

Pinnacle continues to be the fastest-growing financial institution in the Nashville-Davidson-Murfreesboro-Franklin MSA for the most recent period, as well as the eight-year period since the firm's inception. Pinnacle was also the fastest-growing bank in the Knoxville MSA following its recent de novo start in that market.

Pinnacle’s acquisition of PrimeTrust Bank and Bank of the South helped the firm gain nearly four points in market share in Nashville. Pinnacle grew market share to 9.56% in 2008, overtaking First Tennessee as the fourth-largest financial institution in the MSA. Pinnacle's market share for 2007 was 5.80% prior to its acquisition of Prime Trust and Bank of the South in late 2007.

Of the top four institutions, Pinnacle was the only bank with a gain in market share. The three largest banks collectively lost in excess of 3% in market share. Regions Bank held its No. 1 position with 18.7% market share, down from 19.9% last year. Bank of America remained the second-largest with its market share decreasing from 14.7% in 2007 to 13.7% this year. SunTrust maintained its position as the third largest, decreasing from 14.1% market share last year to 12.9% this year.

Pinnacle grew its local deposits in Nashville by $333 million year-over-year, while local deposits of its three larger regional bank competitors decreased. Regions fell from $6.1 billion to $5.8 billion. Bank of America was $4.3 billion, down from $4.5 billion. SunTrust’s local deposits dropped from $4.3 billion to $4.1 billion.

“Our gains in market share and deposits are a testament to our strategy of hiring the best financial services professionals in the market,” said M. Terry Turner, Pinnacle president and CEO. “High caliber associates attract great clients, which pays off in more difficult economic environments. Our strategy enables us to continue growing at a rapid rate while maintaining excellent credit quality.”

Many community banks among the 59 financial institutions in the Nashville-Davidson-Murfreesboro-Franklin MSA gained market share, continuing the trend of smaller competitors gaining market share and deposits from larger regional and national banks.

In the Knoxville MSA, Pinnacle grew its deposits by approximately $116 million over the prior year, giving the firm 1.07% market share up 1.03 during the year. This makes Pinnacle the fastest-growing bank in the MSA, climbing 20 positions to the 14th largest market share in Knoxville.

"We are extremely encouraged by our rapid rate of growth and the fact that all but one of the banks in front of us are losing market share," said Nathan Hunter, Pinnacle Knoxville president. "It confirms our belief that the Knoxville market has a strong desire for the kind of service and advice that Pinnacle offers.”

Pinnacle maintained the top spot in the Rutherford County data with 29.81% market share and is the second-largest financial institution in Wilson County with 17.30% market share.

Pinnacle Financial Partners provides a full range of banking, investment, mortgage and insurance products and services designed for small- to mid-sized businesses and their owners, real estate professionals and individuals interested in a comprehensive relationship with their financial institution. Pinnacle’s comprehensive wealth management services, such as financial planning and trust, help clients increase, protect and distribute their assets. The firm also has a well-established expertise in commercial real estate.

Pinnacle is Tennessee’s second-largest bank holding company with $4.11 billion in assets and 31 offices in eight Middle Tennessee counties. Pinnacle also entered the Knoxville, Tenn., market, where the firm operates one banking office and a loan production office. The firm is the fastest growing of the 186 national banks chartered in 2000 and in 2007 was the only bank on Fortune magazine’s annual list of America’s 100 Fastest-Growing Companies. For more information, visit

(a) 3% due to acquisition of Mid-America Bancshares, Inc. combined with 0.8% organic growth

Certain of the statements in this release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," "anticipate," "intend," "plan," "believe," "seek," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking. All forward-looking statements are subject to risks, uncertainties and other facts that may cause the actual results, performance or achievements of Pinnacle to differ materially from any results expressed or implied by such forward-looking statements. Such factors include, without limitation, (i) unanticipated deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses, (ii) the inability of Pinnacle to continue to grow its loan portfolio at historic rates in the Nashville-Davidson-Murfreesboro-Franklin MSA and the Knoxville MSA, (iii) increased competition with other financial institutions, (iv) lack of sustained growth in the economy in the Nashville-Davidson-Murfreesboro-Franklin MSA and the Knoxville MSA, (v) rapid fluctuations or unanticipated changes in interest rates, (vi) the inability of Pinnacle to satisfy regulatory requirements for its expansion plans, (vii) the inability of Pinnacle to execute its expansion plans and (viii) changes in state and Federal legislation or regulations applicable to financial services providers, including banks. Additionally, risk factors exist in connection with Pinnacle’s merger with Mid-America including, among others, the risk that the cost savings and any revenue synergies from the merger may not be realized or take longer than anticipated. Many of such factors are beyond Pinnacle's ability to control or predict, and readers are cautioned not to put undue reliance on such forward-looking statements. Pinnacle disclaims any obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise.

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