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Announcements:

MEDIA CONTACT: Vicki Kessler 615-320-7532
FINANCIAL CONTACT: Harold Carpenter 615-744-3742
WEBSITE: www.pnfp.com

PINNACLE FINANCIAL REPORTS RECORD EARNINGS
Assets grow to $872 million and diluted earnings per share is $0.21

NASHVILLE, Tenn., July 19, 2005 - Pinnacle Financial Partners Inc. (Nasdaq: PNFP) today reported record earnings for the quarter ended June 30, 2005, including quarterly year-to-year net income growth exceeding 60 percent for the 10th consecutive quarter.

SECOND QUARTER 2005 HIGHLIGHTS:

• Record net income of $1.96 million, up 68 percent from the prior year's $1.17 million
• Record diluted earnings per share of $0.21, up 50 percent from the prior year's $0.14
• Strong balance sheet growth:
• Average loans up 56 percent from the same period last year
• Average total deposits up 46 percent from the same period last year, with average noninterest bearing demand deposit accounts up 54 percent from the same period last year
• Superior credit quality:
• Net charge-off's as a percentage of average loans of only 0.02 percent
• Past due loans over 30 days of only 0.21 percent of total loans
• Nonperforming assets of only 0.11 percent of total loans and other real estate

"We are again reporting net income growth over 60 percent and strong loan and deposit growth for this quarter," said M. Terry Turner, President and CEO of Pinnacle Financial Partners. "Our goal has been to balance growth in volumes with growth in earnings such that shareholder value is maximized over both the short- and long-term."

FINANCIAL PERFORMANCE

• Return on average assets for the quarter ended June 30, 2005, was 0.96 percent compared to 0.82 percent for the same quarter last year.
• Return on average stockholders' equity for the quarter ended June 30, 2005, was 13.21 percent compared to 12.83 percent for the same quarter last year.
• Efficiency ratio (noninterest expense divided by net interest income and noninterest income) was 60.4 percent during the second quarter of 2005 compared to 62.4 percent during the second quarter of 2004.

Total assets grew to $872 million as of June 30, 2005, up $286 million or 49 percent from the $586 million reported at June 30, 2004. Loans as of June 30, 2005, were $557 million, or 57 percent higher than the $355 million reported at June 30, 2004. Total deposits increased to $690 million at June 30, 2005, or 48 percent higher than the $467 million reported at June 30, 2004.

"Our asset growth was excellent for the second quarter," said Turner. "Even with this significant asset growth and the associated provision expense we were able to maintain our ROA at a level consistent with the first quarter of 2005. We are also pleased that ROE for the second quarter was an all time high for our firm."

REVENUE

• Revenue (the sum of net interest income and noninterest income) for the quarter ended June 30, 2005 amounted to $8.2 million compared to $5.6 million for the same quarter of last year, an increase of 46.6 percent.
• Net interest income for the quarter ended June 30, 2005, was $6.80 million compared to $4.54 million for the quarter ended June 30, 2004, an increase of 49.8 percent.
• Net interest margin for the second quarter of 2005 was 3.57 percent, compared to a net interest margin of 3.51 percent reported during the second quarter in 2004 and 3.78 percent for the first quarter of 2005.
• Percentage of daily floating rate loans to total loans was 55.9 percent at June 30, 2005.
• Noninterest income for the quarter ended June 30, 2005, was $1,416,000 compared to $1,067,000 during the same quarter in 2004, an increase of 32.7 percent.

"Our net interest margin of 3.57 percent was higher than the net interest margin for the same quarter last year and lower than our net interest margin for the first quarter of this year," said Harold Carpenter, Chief Financial Officer of Pinnacle Financial Partners. "The decline in our net interest margin between the first and second quarters of 2005 was due to several factors, with the primary contributor being a rapid rise in deposit rates over the past few months. Our internal models indicate that our balance sheet remains structurally asset sensitive and, although Nashville continues to be a very competitive deposit pricing market, our belief is that with anticipated increases in short-term rates currently forecasted for the remainder of 2005, we should be in the position to maintain our net interest margin for the remainder of the year. At a time when many banks are faced with margin compression and therefore lower net interest income, our associates remain focused on growing our volumes which enables us to forecast continued growth in net interest income."

At June 30, 2005, the ratio of investment securities to total assets declined to 26.1 percent compared to 28.2 percent at June 30, 2004. Pinnacle anticipates that this ratio will approximate 25.0 to 27.0 percent for the remainder of 2005 and represents a slight shift in asset mix to the higher yielding loan category.

The increase in noninterest income was due to the further development of Pinnacle's mortgage origination unit, increased service charges due to more deposit accounts and increased investment services income from Pinnacle Asset Management. For the quarter ended June 30, 2005, noninterest income represented approximately 17.2 percent of total revenues, compared to 19.0 percent for the same quarter in 2004.

CREDIT QUALITY

• Provision for loan losses was $483,000 for the second quarter of 2005 compared to $449,000 in the second quarter in 2004. The following impacted the amount of the provision for loan losses in the second quarter of 2005 when compared to the same period in 2004:
• Loan growth in the second quarter of 2005 of $40 million compared to loan growth of $32 million in the second quarter of 2004.
• Net charge-offs were $22,000 in the second quarter of 2005 compared to net charge-offs of $25,000 during the same period in 2004.
• Allowance for loan losses represented 1.20 percent of total loans at June 30, 2005, compared to 1.26 percent at June 30, 2004.
• Annualized net charge-offs to average loans were 0.02 percent for the second quarter of 2005 compared to 0.03 percent for the second quarter of 2004.
• Nonperforming assets as a percentage of total loans and other real estate decreased to 0.11 percent at June 30, 2005, from 0.38 percent at June 30, 2004.

"We remain extremely pleased with the credit quality of our firm," said Turner. "In the first half of this year, asset quality indicators have been consistent with the superior levels we have experienced throughout most of the life of this firm. Specifically, our nonperforming assets, net charge-off and past due ratios are at exceptional levels and better than national peer group averages. We continue to believe that our asset quality is the best predictor of our ability to create long-term shareholder value."

OTHER SECOND QUARTER 2005 DEVELOPMENTS

• A continued focus on treasury management services and growth in demand deposit accounts. For the quarter ended June 30, 2005, average noninterest-bearing deposit balances averaged $112 million compared to $73 million for the same quarter last year, an increase of 54 percent. "We are very pleased with the steady growth in demand deposit operating accounts and commercial customer repurchase accounts," said Robert A. McCabe Jr., Chairman of the Board of Pinnacle. "Additionally, we expect to produce long-term growth in both balances and service charges for our firm through our recent and continuing investments to enhance our treasury management capabilities."
• Pinnacle grew to 148 associates (146.5 full-time equivalent) at June 30, 2005, with 106 working in client contact areas and 42 in operational and corporate areas. This represents an increase of 25 employees from the 123 employees as of December 31, 2004. Pinnacle's annual retention rate was 96.6 percent at June 30, 2005, representing a very high level of engagement for Pinnacle's associates. Approximately 22 associate additions are currently planned for the remainder of 2005 with 16 to be in client contact areas.
• Pinnacle opened its eighth office, located in Hendersonville, Tenn., which is the largest city in Sumner County, a very attractive county within the Nashville MSA.
• Pinnacle is considering a ninth location to be opened in late 2005 or early 2006 in the Nashville MSA. Pinnacle expects to add another two offices in the Nashville MSA in 2006, which would bring the company's total number of offices to 11.

INVESTMENT OUTLOOK

Management has developed several financial forecast scenarios for the next several quarters. Based on anticipated growth trends and future investments in the franchise, Pinnacle estimates its third quarter 2005 diluted earnings per share will approximate $0.21 to $0.22. Pinnacle tightened the estimate for diluted earnings per share for the year ending Dec. 31, 2005, to range between $0.84 and $0.87. Additionally, Pinnacle currently estimates total asset balances will approximate $1 billion by the end of 2005 as a result of continued organic growth. Pinnacle continues to anticipate significant loan demand for the remainder of 2005 and, as a result, has considered the increased provision for loan losses associated with increased loan balances in these estimates.

As noted previously, management has developed several scenarios under which these estimates can be achieved and believes these estimates to be reasonable based on these scenarios. However, unanticipated events or developments, including the execution of any initiative involving the development of any market other than the current Nashville franchise, the opportunity to hire more seasoned professionals than anticipated or the ability to grow loans significantly in excess of the levels contemplated, may cause the actual results of Pinnacle to differ materially from these estimates.

The estimates do not include compensation expense related to the expensing of stock options that have been and may be granted to employees under the firm's broad-based stock option plans. Pinnacle will begin including such compensation expense in its statement of income in 2006.

Pinnacle Financial Partners, the largest financial services firm headquartered in Nashville, provides a full range of banking, investment and insurance products and services designed for small- to mid-sized businesses and their owners/operators. Pinnacle provides financial planning services by a certified financial planner (CFP ®), and a number of Pinnacle's senior financial advisors provide comprehensive wealth management services to help clients increase, protect and distribute their assets.

Pinnacle opened its first office in October 2000 in Commerce Center in downtown Nashville. Since then the firm has added Nashville offices in the Rivergate, Green Hills and West End areas and offices in Brentwood, Cool Springs and Franklin in Williamson County. Just recently, the firm added its eighth office in Hendersonville in Sumner County.

Additional information concerning Pinnacle can be accessed at www.pnfp.com.

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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) the inability of Pinnacle to continue to grow its loan portfolio at historic rates, (iii) increased competition with other financial institutions, (iv) lack of sustained growth in the economy in the Nashville, Tennessee area, (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 the legislative and regulatory environment. 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.