Terry and Robert
Message To Shareholders

Uniquely Pinnacle

Dear Fellow Shareholders,

In a sea of regional and national financial firms offering similar products, how can a single bank claim to be distinctive?

Pinnacle is one of thousands of banks nationwide and hundreds in Tennessee, the Carolinas and Virginia. All of us are competing for the same clients, offering essentially the same products and services at about the same price.

So what makes a bank distinctive?

Watch the Pinnacle Story

The Dale Carnegie Research Institute says it’s trust and relationships. Their research finds that, in the “Era of the Consumer,” a relationship manager earns trust by being customer-focused, competent and prioritizing what’s right over making the sale.

Many banks are trying desperately to catch up with that idea, to turn around their massive ships in the new prevailing wind. They often do it with impersonal technology that’s designed to make things easier. In reality it’s engineered to make it cheaper to serve the customer.

We believe what’s missing are people. Savvy consumers long for something personal – and they value a good experience over price. Carnegie’s data back this up, with 71 percent of survey respondents saying they would rather buy from a salesperson they completely trust than one who gave them a lower price.

Unlike the large national and regional franchises we compete with, Pinnacle doesn’t have to adjust. We’ve always been intentional about valuing people more than sales.

Pinnacle was founded in 2000 explicitly to battle against the impersonal service that has infected big banks. We start with a core philosophy that “people matter.” We carry that out by building a team of financial professionals who are experienced and well-equipped to be trusted partners with their clients, not just their bankers.

Based on those foundational building blocks, the strategy is clear:

  • Create a top-notch place to work and leverage it to recruit and retain the very best bankers.
  • Empower them to bring over their best clients and engage them fully so they give better service and are easier to do business with.
  • Excite and create loyalty in our clients so they love doing business with us and trust us with every need.
  • Grow our company in a smart, sustainable way that aims to bring shareholders meaningful returns.

Focusing on people is the right thing to do for our clients and associates. As it happens, it’s also a more profitable way to do business, as the last 18 years have proven.

2018 saw our strategy play out successfully in many ways.

It looked like a tough year if all you did was watch the share price. But long-term shareholder value is created by consistently out-performing peers on the fundamentals, so we’ll keep setting tall targets and striving to hit them consistently.

  • Hiring Pinnacle hired 107 new revenue producers in 2018, many of them from large regional and national banks, with an average of more than 20 years of experience. They are bringing their best clients and creating a broader pipeline for new business.
  • Growth Across Metrics Those new hires joined a group of dedicated financial advisors who collectively drove results well ahead of our peers. They grew loans by double digits while most of our peers hit singles. They funded them largely with core deposits that also grew by double digits. Revenues hit a new record at nearly a billion dollars, with both net interest income and fee income jumping more than 35 percent.
  • Outstanding Credit Quality A disciplined approach to lending gave us another year of rock solid credit quality with nonperforming assets at just above a half-percent. Hiring people who know their books of business well and leave troubled accounts at their previous banks improves asset quality.
  • Market Share Victories in High-growth Markets Recruiting the best bankers and their clients from our competitors is a winning strategy, and it paid off in 2018 as we grew market share in substantially all of the MSAs we serve. According to FDIC deposit rankings as of June 30, 2018:
    • Pinnacle is now the No. 1 bank in Nashville
    • More than half of our MSAs – eight – grew deposits by double digits
    • Knoxville and Memphis both crossed the $1 billion mark for deposits
    • Pinnacle has climbed to the No. 3 bank in Greensboro-High Point, NC
  • Validation from Independent Researchers In its research, Carnegie found that people are more likely to do business with a firm, recommend it and pay a premium for services if they have a good relationship with their advisor. How does Pinnacle fare against this standard? Greenwich Associates surveyed our clients to find out. In our home market in Nashville, which is our gold standard and model for how all our markets operate, this is what they said.
    • 98% express overall satisfaction with Pinnacle
    • 93% are likely to recommend Pinnacle – with by far the highest “net promoter” score in the market and no detractors in any survey response
    • 95% say Pinnacle values long-term relationships
    • 97% are satisfied with their Pinnacle banker
    The data from Greenwich were so strong, in fact, that we earned 21 Greenwich Excellence Awards for 2018 and another four Greenwich Best Brand Awards, both given for small business and middle market banking.

There’s nothing radical about the way we accomplished all this. We just executed our strategy faithfully all year long. The same strategy we’ve been executing since we started in 2000.

Going forward, we are focused on executing our strategy to the utmost to deliver long-term shareholder value.

With all that worked in 2018, and has worked throughout the history of this company, we’ve set more tall targets for 2019 and have every intention of hitting them.

We currently anticipate low- to mid-double digit loan growth with a focus on building upon the C&I momentum our team has in the Carolinas and Virginia. C&I now represents more than 20 percent of this region’s total portfolio, and we expect that growth to continue as we bring on more talented people with meaningful books of business.

Our recruiting pipelines are very promising in all markets. We’ll spend the year closing in on our goal of hiring 65 C&I/private banking advisors in the Carolinas and Virginia. Just because we’re far ahead of our original target doesn’t mean we’ll take our foot off the gas. We expect our pursuit of the best bankers to pay off.

The chance to take more market share will come with them, because since we expect that their best clients follow them to our firm. Opportunities for new business abound. We believe Pinnacle is best positioned to take advantage of the robust economic development in many of our major markets, as well as poor service levels at the other banks. Data from Greenwich Associates plot a very telling graph that shows great vulnerability among the biggest firms – low overall satisfaction among those who have the most significant market share.

We win because we believe that people matter.

It’s not just a marketing gimmick. We believe in our bones that people matter, and it’s why we designed every facet of our company to support that philosophy.

That is why we stand out from the pack. It’s the reason why we’ve shot from $0 in assets to $25 billion in less than 20 years, why we went from de novo to the 44th largest banking franchise in the country and why we have been one of the top performing bank stocks in the country since our inception.

Shareholders should reap the benefits in the end. We have remained tightly focused on the three metrics we believe will drive the greatest returns, and we have done so successfully: Revenue per share has never been higher. Neither has earnings per share. And we did it with a fortress balance sheet that saw our non-performing asset ratio fall.

Our belief is that those three measurements have traditionally been the most tightly correlated with long-term shareholder value, and yet our share price in 2018 did not reflect the many wins we had. In the end, that could be good news for those who invest in our success.

We remain committed to managing the fundamentals and consistently outperforming peers relative to revenue growth, earnings growth and loan quality. We believe a focus on those priorities should, over time, produce outsized share price appreciation.



M. Terry TurnerPresident and CEO
Robert A. McCabe, Jr.Chairman


North Carolina
South Carolina
North Carolina
South Carolina
High Point
North Carolina
North Carolina

Pinnacle operates in 11 primarily urban markets in Tennessee, North Carolina, South Carolina and Virginia. Get highlights of our momentum and further potential in each of them, including hiring, loan and deposit growth figures, market share movement and economic rankings.

Incredible Momentum

Team Pinnacle in Memphis continues the rapid ascent it began when our firm entered the market in 2015. We crossed the $1 billion loan mark for the first time after crossing the same milestone in deposits a year earlier. Our share of deposits in the market continued to grow as well, moving into the No. 6 position on the FDIC's list as of June 30, 2018. And the team repeated as the No. 1 Best Place to Work in Memphis.

Memphis itself is a city with momentum, as Mayor Jim Strickland described it. Two major corporate headquarters are moving into downtown: FedEx Logistics and Indigo Ag, one of the nation's leading agricultural tech firms. They bring with them nearly 1,400 jobs and $50 million in investment. And coming soon to the Mississippi River is a new aquarium and tourist development district to bring visitors and revenue into the city.

Pinnacle Growth


Producers Hired


to $1.34 billion Loan Growth


to $1.07 billion Deposit Growth


Moved up to No. 6 Market Share

Personalized attention to detail in all facets of banking matters. Human touch is priceless

ED FLEMMONSPool Contractors Supply, Inc. in Memphis, TN

Memphis on the Charts

No. 1 Bank

Pinnacle is the No. 1 bank in our hometown of Nashville, according to FDIC deposit data as of June 30, 2018, which is a momentous milestone in our firm's history. Pinnacle is one of very few modern banks to go from de novo to No. 1 in a major American MSA. Loan growth also topped double digits as the team expanded to serve more clients.

Pinnacle is poised to play a key role in our city's strong economic growth. Nashville won big in the contest for Amazon's new headquarters, landing an operational center with 5,000 jobs and $230 million in investment. That came on the heels of AllianceBernstein announcing its corporate headquarters moving from Wall Street to downtown Nashville and EY opening an office with 600 jobs.

A rapidly-growing construction company needed better financing and an advisor the guide them. They found both at Pinnacle.

Pinnacle Growth


Producers Hired


to $6.27 billion Loan Growth


to $7.47 billion Deposit Growth


Moved up to No. 1 Market Share

Nashville on the Charts

Tech Leader

With just two offices, Team Pinnacle in Chattanooga grew loans by double digits and deposits by nearly 10 percent. The team also grew in several key areas, including C&I, wealth, small business and mortgage, thanks to a robust hiring pipeline from larger competitors in the market.

Chattanooga's reputation as a national leader in the industries of the future was bolstered by major economic developments and recognitions. Volkswagen announced an $800 million expansion to make Chattanooga its center of electric vehicle production in the United States. That new plant will bring the company's total investment in the region to $2.3 billion with 3,500 jobs. And a leading producer of solar panels began work on a $150 million plant in nearby Dalton, GA, with 500 jobs.

Pinnacle Growth


Producers Hired


to $1.26 billion Loan Growth


to $871.5 million Deposit Growth


Held Steady at No. 4 Market Share

Jimmy is an aggressive problem solver who works hard to meet needs. I am always confident that if there is a solution, he will find it.

DAVID BOWERS, JR.Chattanooga, TN

Chattanooga on the Charts

50% Deposit Growth

Pinnacle once again placed No. 1 on the Knoxville News-Sentinel's list of the Top Workplaces in Knoxville. They did it while also expanding the deposit base by 50 percent in a single year, according to FDIC data from June 30, 2017 to June 30, 2018, and climbing to the No. 5 bank in Knoxville in terms of deposits.

Knoxville and the surrounding region are known as Innovation Valley for East Tennessee's connection to advanced science through the Oak Ridge National Laboratory, robust higher education through the University of Tennessee and strong capabilities to support technology and emerging industries.

Wanting to follow his dream but unsure of how to get there, a passionate brewer finds a kindred spirit at Pinnacle.

Pinnacle Growth


Producers Hired


to $1.55 billion Loan Growth


to $1.49 billion from Dec. 2017 to Dec. 2018 Deposit Growth


Moved up to No. 5 Market Share

Knoxville on the Charts

Double-digit Growth

Our momentum in Upstate South Carolina took off in 2018. The team of revenue producers has doubled since we entered the market in 2017, and as a result loans and deposits have both grown by double digits. And Pinnacle is climbing the charts in deposit market share, moving into the No. 14 spot in a crowded field, according to FDIC data as of June 30, 2018.

Greenville and Spartanburg are considered among the fastest-growing cities with potential in the Southeast. "2019 promises to be an active year" for the state's economy, according to the daily paper in Charleston. In the Upstate, a major inland port is set to receive a major upgrade to increase capacity, and BMW just started rolling X7s off the line.

Pinnacle Growth


Producers Hired


to $418.7 million Loan Growth


to $378.5 million Deposit Growth


Moved up to No. 14 Market Share

Upstate on the Charts

$1 Billion in Deposits

Charlotte moved into a crucial position for our firm as the No. 2 market for lending behind only Nashville. It's also No. 4 among our markets for deposits, thanks to 14 percent growth that pushed us over the $1 billion mark in 2018. That growth is due in large part to incredible team building, with 12 new revenue
producers hired in as many months.

Charlotte's ascent among American cities continues with incredible population growth and corresponding commercial and residential development. The region's economy is also benefiting from major corporate headquarter relocations and expansions like Honeywell with 750 new jobs and AvidXChange with another 1,220.

When a coffee shop owner was in a fight for her life, her partner from Pinnacle was there to help.

Pinnacle Growth


Producers Hired


to $1.81 billion Loan Growth


to $1.10 billion Deposit Growth


Held Steady at No. 9 Market Share

Charlotte on the Charts

Economic Growth

One of America's best small cities in one of the best states for business, Winston-Salem has experienced dramatic growth. Unemployment sat below 3 percent toward the end of 2018 as the number of businesses climbed year-over-year.

Pinnacle Growth

William has been (and continues to be) one of our favorite bankers. Always steps ahead of us and a pleasure to know and work with him.


Winston-Salem on the Charts

$2 Billion in Deposits

The Triad is Pinnacle's second home and base of operations in the Carolinas and Virginia. It's appropriate, then, that it's the firm's No. 2 market for deposits, having crossed the $2 billion mark in 2018. That's good enough for the No. 3 spot across the Greensboro/High Point and Winston-Salem MSAs, according to FDIC data as of June 30, 2018. We also saw significant loan growth thanks to key revenue producer hires in diverse lines of business.

With North Carolina listed as Forbes' No. 1 Best State for Business, Pinnacle is positioned to take full advantage of the economic boon the state is experiencing.

When a small town child care center needed to serve more kids and create more jobs, they turned to Pinnacle for help.

Pinnacle Growth


Producers Hired


to $1.60 billion Loan Growth


to $2.01 billion Deposit Growth


Held Steady at No. 3 Market Share

The Triad on the Charts

Tremendous Growth

Pinnacle gained a great deal of traction as a player in Raleigh's growing economy in 2018. Tremendous growth in loans, which crossed the $1 billion mark for the first time, and deposits, which rose nearly 30 percent, was fueled by a growing team that added 10 revenue producers during the year.

In a state already experiencing robust business growth, the Triangle region had some of North Carolina's biggest economic development wins in 2018. Three major corporate relocations and expansions will bring a steady stream of new jobs and accompanying development for years to come, including Advance Auto Parts, Pendo.io and LabCorp.

Nobody seemed to believe Mako Medical would make it past startup. That changed after a conversation with Pinnacle.

Pinnacle Growth


Producers Hired


to $1.04 billion Loan Growth


to $581.1 million Deposit Growth


Moved up to No. 14 Market Share

The Triangle on the Charts

Expanding Our Reach

Pinnacle expanded its reach in Virginia in 2018 by opening a loan-production office in Lynchburg led by two veteran commercial financial advisors. This push east helped lead our firm to double-digit deposit growth and loan growth of almost 10 percent. Clients and associates responded to our culture and distinctive service in a major way, telling us it's a breath of fresh air compared to other banking experiences.

Virginia remains one of America's leading growth states, bolstered by Amazon's announcement of HQ2 just outside of Washington, D.C..

Pinnacle Growth


Producers Hired


to $462.3 million Loan Growth


to $583.7 million Deposit Growth


Held Steady at No. 5 Market Share

I LOVE working with Pinnacle. You have some cultural magic going on there that is simply not found in most financial institutions.


Virginia on the Charts

Steady Growth

Our reach up and down the South Carolina coast has put Pinnacle in prime position to benefit from the region's growth. Loans and deposits grew steadily, as did our team. Success here can help fuel further growth in South Carolina as we seek to close the gap between the Coast and the Upstate.

"2019 promises to be an active year" for the South Carolina economy, according to the daily paper in Charleston, and energy, aviation and shipping will play key parts. Tourism and hospitality are also crucial to the region's success, two areas we have a great deal of experience with thanks to our work in Nashville and Memphis.

Reopening a shuttered Navy shipyard was a massive project with thousands of jobs at stake. So a group of business leaders turned to their "super banker" for help.

Pinnacle Growth


Producers Hired


to $830 million Loan Growth


to $892.4 million Deposit Growth


Charleston: Moved to No. 8 Market Share

South Carolina Coast on the Charts

Charlotte, NC Winston-Salem, NC Greensboro/High Point, NC Raleigh/Durham, NC Greenville/Spartanburg, SC Charleston, SC Chattanooga, TN Memphis, TN Nashville,TN Knoxville, TN Roanoke, VA