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

Pinnacle Financial Reports Record Growth
Assets grow to $685 million and earnings per share are $0.16

NASHVILLE, Tenn., Oct. 19, 2004 - Pinnacle Financial Partners Inc. (Nasdaq: PNFP), the holding company for Pinnacle National Bank, today reported that net income for the quarter ended September 30, 2004, was $1,391,000, or $0.16 per diluted share, an increase of 60 percent when compared to Pinnacle's net income of $787,000, or $0.10 per diluted share for the quarter ended September 30, 2003. The company also reported net income for the nine months ended September 30, 2004, of $3,630,000, or $0.43 per diluted share, an increase of 95 percent when compared to Pinnacle's net income of $1,696,000, or $0.22 per diluted share for the nine months ended September 30, 2003.

Return on average assets for the quarter ended September 30, 2004, was 0.89 percent compared to 0.77 percent for the same quarter last year. Return on average stockholders' equity for the quarter ended September 30, 2004, was 12.58 percent compared to 9.59 percent for the same quarter last year. The firm's efficiency ratio (noninterest expense divided by net interest income and noninterest income) improved to 57.4 percent during the third quarter of 2004 compared to 65.0 percent during the third quarter of 2003.

Total assets grew a record $99 million to $685 million as of September 30, 2004, up $187 million or 50 percent on an annualized basis from the $498 million reported at December 31, 2003. Assets at the end of the third quarter were up $244 million or 55 percent from the $441 million reported a year ago. Loans as of September 30, 2004, were $435 million, more than 46 percent higher than the $297 million reported at December 31, 2003, and almost 55 percent higher than the $280 million reported at September 30, 2003. Total deposits increased to $542 million at September 30, 2004, compared to $391 million at December 31, 2003, and $347 million at September 30, 2003.

Net loan growth for the quarter ended September 30, 2004, was $80 million which was 2.5 times more than the loan growth experienced in the second quarter of 2004 which was $32 million. Loan growth during the third quarter of 2003 was $24 million. Total deposit growth for the quarter ended September 30, 2004, was $75 million compared to $30 million during the second quarter of 2004 and $38 million during the third quarter of 2003.

"The outstanding loan and deposit growth we achieved in the third quarter is evidence that our investment in seasoned financial professionals is paying off," said M. Terry Turner, President and CEO of Pinnacle Financial Partners. "This growth, combined with the success of our recently completed follow-on stock offering, gives us a great deal of momentum for the remainder of 2004 and into 2005. After only four years of operations, we believe our associates have built a reputation for providing Nashville's small businesses and affluent individuals distinctive service and effective advice and that their effort is the reason for these great results."

Net interest income for the quarter ended September 30, 2004, was $5.3 million compared to $3.4 million for the quarter ended September 30, 2003. Net interest income for the nine months ended September 30, 2004, was $14.0 million compared to $9.0 million for the same period in 2003. The net interest margin for the third quarter of 2004 was 3.62 percent, which was higher than the net interest margin of 3.51 percent reported during the second quarter in 2004. The percentage of daily floating rate loans to total loans increased to 55.8 percent at September 30, 2004, compared to 52.5 percent at June 30, 2004, and 53.7 percent at September 30, 2003.

The provision for loan losses was $1,012,000 for the third quarter of 2004 reflecting the impact of the significant loan growth during the third quarter. The provision for the third quarter of 2004 is higher than the $449,000 in the second quarter of 2004 and $318,000 in the third quarter in 2003. The provision for loan losses was $1,814,000 for the first nine months of 2004 compared to $953,000 for the same period in 2003. The allowance for loan losses represented 1.25 percent of total loans at September 30, 2004. Annualized net charge-offs to average loans amounted to 0.04 percent for the quarter ended September 30, 2004. Nonaccrual loans as a percentage of total loans decreased to 0.31 percent at September 30, 2004.

Noninterest income for the quarter ended September 30, 2004, was $1,678,000 compared to $1,024,000 during the same quarter in 2003. Noninterest income for the nine months ended September 30, 2004, was $4.1 million compared to $2.4 million during the same period in 2003. These increases were due to the continued development of Pinnacle's mortgage origination unit, gains recognized on the sale of loans and loan participations and investment securities, increased service charges due to more deposit accounts and increased investment services income from Pinnacle Asset Management. For the quarter ended September 30, 2004, noninterest income represented approximately 24.1 percent of total revenues (the sum of net interest income and noninterest income), compared to 23.2 percent for the same quarter in 2003.

Noninterest expense for the quarter ended September 30, 2004, was $4.0 million compared to $2.9 million for the same quarter in 2003. Noninterest expense for the nine months ended September 30, 2004, was $11.0 million compared to $7.8 million for the same period in 2003. Pinnacle has and will continue to increase expense levels in order to capitalize on current and future market opportunities and to provide the necessary infrastructure to support its growth:

• Pinnacle currently has 117 employees with 84 working in client contact areas and 33 in operational and corporate areas, an increase of 27 employees since December 31, 2003. Pinnacle anticipates adding 12 more employees in 2004, including eight who are expected to be in client contact areas, with the remainder in operational and corporate areas. Approximately 23 employee additions are currently planned for 2005, bringing the total number of employees to 152 by the end of 2005.
• The firm opened its sixth office, located in the West End area of Nashville, during the third quarter. This office is located adjacent to Vanderbilt University and is within close proximity to Nashville's medical community, including several prominent hospitals and medical office facilities. Pinnacle has also begun a new medical practice financial services unit based from its West End location with four associates focused on serving this particular business sector.
• Pinnacle has also begun construction of its seventh office, located in Franklin, Tenn., which is the county seat of Williamson County. The Franklin office, which is anticipated to be open in late 2004 or early 2005, will be the firm's third office in Williamson County, which has the highest per capita income and one of the highest growth rates of all Tennessee counties.
• Pinnacle has begun negotiations for its eighth office, to be located in the Hendersonville, Tenn., area, northeast of Nashville's central business district. The firm anticipates this office to be open in mid-2005. Additionally, the firm is considering a ninth location to be opened in late-2005 in the Nashville MSA with two more offices planned for 2006, bringing the total number of offices to 11 by December 2006.

INVESTMENT OUTLOOK

During the third quarter of 2004, Pinnacle presented its outlook for growth at a regional investor conference which included Pinnacle's plans for additional hiring and buildout of the branch distribution system. Turner noted at the conference that he believed the firm could grow to $1.2 billion in assets within the next few years without adding any additional sales force or branch offices, however. He also indicated that Pinnacle has the capacity to enter other urban markets in Tennessee, but that management has no current plans to enter those markets. Turner stated that management views its acquisition of key people with deep ties to the local market to be the principal reason for its rapid growth in Nashville and that the availability of such people in other markets would be a catalyst to accelerate entry into those markets.

For its existing Nashville franchise, 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 2004 diluted earnings per share will approximate $0.60 to $0.62. Pinnacle also estimates diluted earnings per share for the year ending December 31, 2005, to be $0.82 to $0.88. Additionally, Pinnacle is estimating that its ending total asset balances will approximate $900 million by the end of 2005 through organic growth. 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 to grow loans significantly in excess of the levels contemplated, may cause the actual results of Pinnacle to differ materially from these estimates. Additionally, the estimates are exclusive of compensation expenses related to the expensing of incentive stock options that have been and may be granted to employees under the firm's broad-based stock option plans. Management continues to follow the ongoing debate between the various accounting rule-making bodies and others related to these matters.

Pinnacle Financial Partners, the largest financial services firm headquartered in Nashville, provides a full range of banking, investment and insurance products and services targeted at small- to mid-sized businesses and their owners/operators. 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 and the Cool Springs areas of Williamson 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 (the "Securities Act"). 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) increased competition with other financial institutions, (iii) lack of sustained growth in the economy in the Nashville, Tennessee area, (iv) rapid fluctuations or unanticipated changes in interest rates, (v) the inability of Pinnacle to satisfy regulatory requirements for its expansion plans, and (vi) changes in the legislative and regulatory environment, a more detailed description of various risks is contained in Pinnacle's most recent annual report on Form 10-KSB. 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.