Pinnacle Financial Announces $21.55 Million Loan Charge-Off

Pinnacle Financial Partners Inc. (Nasdaq/NGS: PNFP) today announced it charged off a $21.55 million loan to a bank holding company after learning that the banking subsidiary of the borrower had been placed in receivership by the Office of the Comptroller of the Currency. The charge-off will approximate $0.53 per fully diluted share and will negatively impact Pinnacle’s second quarter 2009 results of operations.

"As we noted when we announced our first quarter results and in our conference call last month, this loan was to a financial institution holding company that was experiencing regulatory pressure with respect to its capital position and was not a borrower typical of our client mix in that it was our only loan to a financial institution," said M. Terry Turner, Pinnacle president and chief executive officer. "Apparently, this borrower was unable to satisfy regulatory concerns with respect to its capital position which we believe deteriorated rapidly and contributed to today's unanticipated regulatory action. We look forward to putting this behind us so we can continue to focus on those things that have made Pinnacle successful.

"This event will have a minimal impact on our capital ratios," Turner said. "Our capital position remains strong and above that of all of our major competitors, and we do not believe this event will limit the growth opportunity we continue to have."

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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) continuation of the historically low short-term interest rate environment, (iii) 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, (iv) increased competition with other financial institutions, (v) deterioration or lack of sustained growth in the national or local economies including the Nashville-Davidson-Murfreesboro-Franklin MSA and the Knoxville MSA, (vi) rapid fluctuations or unanticipated changes in interest rates, (vii) the development any new market other than Nashville or Knoxville, (viii) a merger or acquisition, (ix) any activity in the capital markets that would cause Pinnacle to conclude that there was impairment of any asset including intangible assets and (x) changes in state and Federal legislation or regulations applicable to banks and other financial services providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy. A more detailed description of these and other risks is contained in Pinnacle’s most recent annual report on Form 10-K. 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.