x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2017 | |
or | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
(Exact name of registrant as specified in its charter) | ||
Tennessee | 62-1812853 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
150 Third Avenue South, Suite 900, Nashville, Tennessee | 37201 | |
(Address of principal executive offices) | (Zip Code) | |
(615) 744-3700 | ||
(Registrant's telephone number, including area code) | ||
Not Applicable | ||
(Former name, former address and former fiscal year, if changes since last report) |
Yes x | No o |
Yes x | No o |
Large Accelerated Filer x | Accelerated Filer o |
Non-accelerated Filer o (do not check if you are a smaller reporting company) | Smaller reporting company o |
Emerging growth company o |
Yes o | No x |
TABLE OF CONTENTS | Page No. |
PART I – Financial Information: | |
Item 1. Consolidated Financial Statements (Unaudited) | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. Quantitative and Qualitative Disclosures about Market Risk | |
Item 4. Controls and Procedures | |
PART II – Other Information: | |
Item 1. Legal Proceedings | |
Item 1A. Risk Factors | |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. Defaults Upon Senior Securities | |
Item 4. Mine Safety Disclosures | |
Item 5. Other Information | |
Item 6. Exhibits | |
Signatures |
Item 1. | Part I. Financial Information |
June 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Cash and noninterest-bearing due from banks | $ | 121,804,437 | $ | 84,732,291 | |||
Interest-bearing due from banks | 416,980,586 | 97,529,713 | |||||
Federal funds sold and other | — | 1,383,416 | |||||
Cash and cash equivalents | 538,785,023 | 183,645,420 | |||||
Securities available-for-sale, at fair value | 2,427,034,287 | 1,298,546,056 | |||||
Securities held-to-maturity (fair value of $21,322,047 and $25,233,254 at June 30, 2017 and December 31, 2016, respectively) | 21,163,360 | 25,251,316 | |||||
Consumer mortgage loans held-for-sale | 90,275,468 | 47,710,120 | |||||
Commercial mortgage loans held-for-sale | 11,367,997 | 22,587,971 | |||||
Loans | 14,758,764,516 | 8,449,924,736 | |||||
Less allowance for loan losses | (61,944,494 | ) | (58,980,475 | ) | |||
Loans, net | 14,696,820,022 | 8,390,944,261 | |||||
Premises and equipment, net | 258,037,159 | 88,904,145 | |||||
Equity method investment | 207,020,432 | 205,359,844 | |||||
Accrued interest receivable | 48,417,956 | 28,234,826 | |||||
Goodwill | 1,800,741,933 | 551,593,796 | |||||
Core deposits and other intangible assets | 60,963,513 | 15,104,038 | |||||
Other real estate owned | 24,805,764 | 6,089,804 | |||||
Other assets | 700,720,864 | 330,651,002 | |||||
Total assets | $ | 20,886,153,778 | $ | 11,194,622,599 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 3,893,603,182 | $ | 2,399,191,152 | |||
Interest-bearing | 2,602,527,348 | 1,808,331,784 | |||||
Savings and money market accounts | 6,820,024,282 | 3,714,930,351 | |||||
Time | 2,441,319,823 | 836,853,761 | |||||
Total deposits | 15,757,474,635 | 8,759,307,048 | |||||
Securities sold under agreements to repurchase | 205,008,077 | 85,706,558 | |||||
Federal Home Loan Bank advances | 725,230,449 | 406,304,187 | |||||
Subordinated debt and other borrowings | 465,419,408 | 350,768,050 | |||||
Accrued interest payable | 7,630,882 | 5,573,377 | |||||
Other liabilities | 110,063,488 | 90,267,267 | |||||
Total liabilities | 17,270,826,939 | 9,697,926,487 | |||||
Stockholders' equity: | |||||||
Preferred stock, no par value, 10,000,000 shares authorized; no shares issued and outstanding | — | — | |||||
Common stock, par value $1.00; 90,000,000 shares authorized; 77,646,512 and 46,359,377 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively | 77,646,512 | 46,359,377 | |||||
Additional paid-in capital | 3,100,154,656 | 1,083,490,728 | |||||
Retained earnings | 449,762,022 | 381,072,505 | |||||
Accumulated other comprehensive loss, net of taxes | (12,236,351 | ) | (14,226,498 | ) | |||
Total stockholders' equity | 3,615,326,839 | 1,496,696,112 | |||||
Total liabilities and stockholders' equity | $ | 20,886,153,778 | $ | 11,194,622,599 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest income: | |||||||||||||||
Loans, including fees | $ | 112,319,700 | $ | 77,043,106 | $ | 205,537,647 | $ | 151,447,310 | |||||||
Securities: | |||||||||||||||
Taxable | 8,265,225 | 4,571,876 | 14,698,313 | 9,038,710 | |||||||||||
Tax-exempt | 2,235,517 | 1,443,017 | 3,913,098 | 2,936,774 | |||||||||||
Federal funds sold and other | 922,796 | 703,706 | 1,737,113 | 1,313,293 | |||||||||||
Total interest income | 123,743,238 | 83,761,705 | 225,886,171 | 164,736,087 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 10,993,942 | 5,073,567 | 19,112,856 | 9,989,130 | |||||||||||
Securities sold under agreements to repurchase | 78,438 | 39,532 | 128,204 | 87,582 | |||||||||||
Federal Home Loan Bank advances and other borrowings | 6,043,144 | 3,605,320 | 11,250,524 | 5,713,412 | |||||||||||
Total interest expense | 17,115,524 | 8,718,419 | 30,491,584 | 15,790,124 | |||||||||||
Net interest income | 106,627,714 | 75,043,286 | 195,394,587 | 148,945,963 | |||||||||||
Provision for loan losses | 6,812,389 | 5,280,101 | 10,463,411 | 9,173,671 | |||||||||||
Net interest income after provision for loan losses | 99,815,325 | 69,763,185 | 184,931,176 | 139,772,292 | |||||||||||
Noninterest income: | |||||||||||||||
Service charges on deposit accounts | 4,178,736 | 3,430,391 | 8,034,219 | 6,873,075 | |||||||||||
Investment services | 3,110,088 | 2,499,719 | 5,931,922 | 4,845,319 | |||||||||||
Insurance sales commissions | 1,461,160 | 1,192,827 | 3,320,050 | 2,898,686 | |||||||||||
Gain on mortgage loans sold, net | 4,667,537 | 4,221,301 | 8,822,489 | 7,788,852 | |||||||||||
Gain on sale of investment securities, net | — | — | — | — | |||||||||||
Trust fees | 1,677,079 | 1,491,955 | 3,382,358 | 3,072,567 | |||||||||||
Income from equity method investment | 8,754,718 | 9,644,310 | 16,577,455 | 14,791,834 | |||||||||||
Other noninterest income | 11,207,239 | 10,232,433 | 19,369,658 | 18,298,313 | |||||||||||
Total noninterest income | 35,056,557 | 32,712,936 | 65,438,151 | 58,568,646 | |||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 43,675,551 | 34,254,147 | 82,027,735 | 66,771,003 | |||||||||||
Equipment and occupancy | 10,712,711 | 8,312,272 | 20,387,369 | 16,442,736 | |||||||||||
Other real estate expense | 62,960 | 222,473 | 314,933 | 334,745 | |||||||||||
Marketing and other business development | 2,126,693 | 1,537,843 | 4,005,899 | 2,801,204 | |||||||||||
Postage and supplies | 1,122,251 | 1,049,842 | 2,318,696 | 2,006,929 | |||||||||||
Amortization of intangibles | 1,471,568 | 846,615 | 2,667,697 | 1,719,830 | |||||||||||
Merger related expense | 3,221,060 | 980,182 | 3,893,076 | 2,809,654 | |||||||||||
Other noninterest expense | 9,404,755 | 8,727,393 | 18,235,520 | 17,108,362 | |||||||||||
Total noninterest expense | 71,797,549 | 55,930,767 | 133,850,925 | 109,994,463 | |||||||||||
Income before income taxes | 63,074,333 | 46,545,354 | 116,518,402 | 88,346,475 | |||||||||||
Income tax expense | 19,987,812 | 15,758,582 | 33,778,834 | 29,594,439 | |||||||||||
Net income | $ | 43,086,521 | $ | 30,786,772 | $ | 82,739,568 | $ | 58,752,036 | |||||||
Per share information: | |||||||||||||||
Basic net income per common share | $ | 0.81 | $ | 0.75 | $ | 1.64 | $ | 1.44 | |||||||
Diluted net income per common share | $ | 0.80 | $ | 0.73 | $ | 1.62 | $ | 1.42 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 53,097,776 | 41,274,450 | 50,574,079 | 40,678,669 | |||||||||||
Diluted | 53,665,925 | 41,974,483 | 51,105,996 | 41,411,248 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 43,086,521 | $ | 30,786,772 | $ | 82,739,568 | $ | 58,752,036 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Change in fair value on available-for-sale securities, net of tax | 1,795,006 | 3,211,042 | 986,851 | 9,642,510 | |||||||||||
Change in fair value of cash flow hedges, net of tax | 1,146,252 | (339,961 | ) | 1,003,296 | (1,263,664 | ) | |||||||||
Net gain on sale of investment securities reclassified from other comprehensive income into net income, net of tax | — | — | — | — | |||||||||||
Total other comprehensive income, net of tax | 2,941,258 | 2,871,081 | 1,990,147 | 8,378,846 | |||||||||||
Total comprehensive income | $ | 46,027,779 | $ | 33,657,853 | $ | 84,729,715 | $ | 67,130,882 |
Common Stock | ||||||||||||||||||||||
Shares | Amounts | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comp. Income, net | Total Stockholder's Equity | |||||||||||||||||
Balance at December 31, 2015 | 40,906,064 | $ | 40,906,064 | $ | 839,617,050 | $ | 278,573,408 | $ | (3,485,222 | ) | $ | 1,155,611,300 | ||||||||||
Exercise of employee common stock options and related tax benefits | 332,094 | 332,094 | 6,798,402 | — | — | 7,130,496 | ||||||||||||||||
Common dividends paid | — | — | — | (11,717,393 | ) | — | (11,717,393 | ) | ||||||||||||||
Issuance of restricted common shares, net of forfeitures | 141,331 | 141,331 | (141,331 | ) | — | — | — | |||||||||||||||
Common stock issued in conjunction with Bankers Healthcare Group investment, net | 860,470 | 860,470 | 38,827,126 | — | — | 39,687,596 | ||||||||||||||||
Restricted shares withheld for taxes and related tax benefit | (55,839 | ) | (55,839 | ) | (878,179 | ) | — | — | (934,018 | ) | ||||||||||||
Compensation expense for restricted shares | — | — | 5,244,947 | — | — | 5,244,947 | ||||||||||||||||
Net income | — | — | — | 58,752,036 | — | 58,752,036 | ||||||||||||||||
Other comprehensive income | — | — | — | — | 8,378,846 | 8,378,846 | ||||||||||||||||
Balance at June 30, 2016 | 42,184,120 | $ | 42,184,120 | $ | 889,468,015 | $ | 325,608,051 | $ | 4,893,624 | $ | 1,262,153,810 | |||||||||||
Balance at December 31, 2016 | 46,359,377 | $ | 46,359,377 | $ | 1,083,490,728 | $ | 381,072,505 | $ | (14,226,498 | ) | $ | 1,496,696,112 | ||||||||||
Exercise of employee common stock options | 183,708 | 183,708 | 3,399,370 | — | — | 3,583,078 | ||||||||||||||||
Common dividends paid | — | — | — | (14,050,051 | ) | — | (14,050,051 | ) | ||||||||||||||
Issuance of restricted common shares, net of forfeitures | 259,156 | 259,156 | (259,156 | ) | — | — | — | |||||||||||||||
Issuance of common equity, net of costs | 3,220,000 | 3,220,000 | 188,973,750 | — | — | 192,193,750 | ||||||||||||||||
Common stock issued in conjunction with acquisition of BNC Bancorp, net of issuance costs | 27,687,100 | 27,687,100 | 1,820,146,049 | — | — | 1,847,833,149 | ||||||||||||||||
Restricted shares withheld for taxes | (62,829 | ) | (62,829 | ) | (4,229,294 | ) | — | — | (4,292,123 | ) | ||||||||||||
Compensation expense for restricted shares | — | — | 8,633,209 | — | — | 8,633,209 | ||||||||||||||||
Net income | — | — | — | 82,739,568 | — | 82,739,568 | ||||||||||||||||
Other comprehensive income | — | — | — | — | 1,990,147 | 1,990,147 | ||||||||||||||||
Balance at June 30, 2017 | 77,646,512 | $ | 77,646,512 | $ | 3,100,154,656 | $ | 449,762,022 | $ | (12,236,351 | ) | $ | 3,615,326,839 |
Six months ended June 30, | |||||||
2017 | 2016 | ||||||
Operating activities: | |||||||
Net income | $ | 82,739,568 | $ | 58,752,036 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Net amortization/accretion of premium/discount on securities | 4,388,093 | 2,940,923 | |||||
Depreciation, amortization and accretion | (1,927,832 | ) | 1,220,878 | ||||
Provision for loan losses | 10,463,411 | 9,173,671 | |||||
Gain on mortgage loans sold, net | (8,822,489 | ) | (7,788,852 | ) | |||
Stock-based compensation expense | 8,633,209 | 5,244,947 | |||||
Deferred tax expense | 15,371,727 | 1,750,526 | |||||
Losses on dispositions of other real estate and other investments | 36,874 | 218,568 | |||||
Income from equity method investment | (16,577,455 | ) | (14,791,834 | ) | |||
Excess tax benefit from stock compensation | (4,548,841 | ) | (2,422,226 | ) | |||
Gain on other loans sold, net | (483,402 | ) | (548,560 | ) | |||
Other loans held for sale: | |||||||
Loans originated | (60,171,584 | ) | (30,854,000 | ) | |||
Loans sold | 71,874,960 | 22,079,777 | |||||
Mortgage loans held for sale: | |||||||
Loans originated | (268,698,182 | ) | (195,638,601 | ) | |||
Loans sold | 261,981,394 | 198,239,000 | |||||
Increase in other assets | (4,092,485 | ) | (18,585,336 | ) | |||
Increase (decrease) in other liabilities | (21,164,810 | ) | 30,286,044 | ||||
Net cash provided by operating activities | 69,002,156 | 59,276,961 | |||||
Investing activities: | |||||||
Activities in securities available-for-sale: | |||||||
Purchases | (611,442,128 | ) | (265,495,464 | ) | |||
Sales | 7,492,168 | — | |||||
Maturities, prepayments and calls | 118,629,440 | 104,509,440 | |||||
Activities in securities held-to-maturity: | |||||||
Purchases | — | (560,000 | ) | ||||
Maturities, prepayments and calls | 3,885,000 | 3,170,000 | |||||
Increase in loans, net | (700,982,747 | ) | (559,866,109 | ) | |||
Purchases of software, premises and equipment | (18,690,967 | ) | (6,700,278 | ) | |||
Proceeds from sales of software, premises and equipment | — | 1,949,036 | |||||
Proceeds from sale of other real estate | 2,910,226 | 2,323,953 | |||||
Acquisitions, net of cash paid | 155,141,674 | — | |||||
Purchase of bank owned life insurance policies | (25,000,000 | ) | — | ||||
Increase in equity method investment | — | (74,100,000 | ) | ||||
Dividends received from equity method investment | 14,916,867 | 21,824,256 | |||||
Increase in other investments | (5,376,058 | ) | (16,944,435 | ) | |||
Net cash used in investing activities | (1,058,516,525 | ) | (789,889,601 | ) | |||
Financing activities: | |||||||
Net increase in deposits | 791,495,223 | 321,819,132 | |||||
Net increase (decrease) in securities sold under agreements to repurchase | 56,991,437 | (5,767,418 | ) | ||||
Advances from Federal Home Loan Bank: | |||||||
Issuances | 836,000,000 | 1,528,000,000 | |||||
Payments/maturities | (517,034,260 | ) | (1,045,064,801 | ) | |||
Increase (decrease) in other borrowings, net | (160,100 | ) | 87,976,401 | ||||
Principal payments of capital lease obligation | (72,982 | ) | — | ||||
Proceeds from common stock issuance, net | 192,193,750 | — | |||||
Exercise of common stock options and stock appreciation rights, net of repurchase of restricted shares | (709,045 | ) | 3,774,252 | ||||
Excess tax benefit from stock compensation | — | 2,422,226 | |||||
Common stock dividends paid | (14,050,051 | ) | (11,717,393 | ) | |||
Net cash provided by financing activities | 1,344,653,972 | 881,442,399 | |||||
Net increase in cash and cash equivalents | 355,139,603 | 150,829,759 | |||||
Cash and cash equivalents, beginning of period | 183,645,420 | 320,951,333 | |||||
Cash and cash equivalents, end of period | $ | 538,785,023 | $ | 471,781,092 |
For the six months ended June 30, | |||||||
2017 | 2016 | ||||||
Cash Transactions: | |||||||
Interest paid | $ | 29,310,536 | $ | 14,722,572 | |||
Income taxes paid, net | 25,035,510 | 22,364,686 | |||||
Noncash Transactions: | |||||||
Loans charged-off to the allowance for loan losses | 10,320,665 | 16,372,819 | |||||
Loans foreclosed upon and transferred to other real estate owned | 1,520,444 | 2,464,945 | |||||
Loans foreclosed upon and transferred to other assets | 446,487 | 1,673,946 | |||||
Common stock issued in connection with equity-method investment | — | 39,694,036 | |||||
Common stock issued in connection with acquisition (1) | 1,858,132,809 | — |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Basic net income per share calculation: | |||||||||||||||
Numerator - Net income | $ | 43,086,521 | $ | 30,786,772 | $ | 82,739,568 | $ | 58,752,036 | |||||||
Denominator - Weighted average common shares outstanding | 53,097,776 | 41,274,450 | 50,574,079 | 40,678,669 | |||||||||||
Basic net income per common share | $ | 0.81 | $ | 0.75 | $ | 1.64 | $ | 1.44 | |||||||
Diluted net income per share calculation: | |||||||||||||||
Numerator – Net income | $ | 43,086,521 | $ | 30,786,772 | $ | 82,739,568 | $ | 58,752,036 | |||||||
Denominator - Weighted average common shares outstanding | 53,097,776 | 41,274,450 | 50,574,079 | 40,678,669 | |||||||||||
Dilutive shares contingently issuable | 568,149 | 700,033 | 531,917 | 732,579 | |||||||||||
Weighted average diluted common shares outstanding | 53,665,925 | 41,974,483 | 51,105,996 | 41,411,248 | |||||||||||
Diluted net income per common share | $ | 0.80 | $ | 0.73 | $ | 1.62 | $ | 1.42 |
Number of Shares | Amount | |||||
Equity consideration: | ||||||
Common stock issued | 3,760,326 | $ | 182,469 | |||
Total equity consideration | $ | 182,469 | ||||
Non-equity consideration: | ||||||
Cash paid to redeem common stock | $ | 20,910 | ||||
Cash paid to exchange outstanding stock options | 987 | |||||
Total consideration paid | $ | 204,366 | ||||
Allocation of total consideration paid: | ||||||
Fair value of net assets assumed including identifiable intangible assets | $ | 81,695 | ||||
Goodwill | 122,671 | |||||
$ | 204,366 |
As of July 1, 2016 | |||||||||||
Avenue Historical Cost Basis | Fair Value Adjustments | As Recorded by Pinnacle Financial | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 39,485 | $ | — | $ | 39,485 | |||||
Investment securities (1) | 163,862 | (463 | ) | 163,399 | |||||||
Loans (2) | 980,319 | (27,789 | ) | 952,530 | |||||||
Mortgage loans held for sale | 3,310 | — | 3,310 | ||||||||
Core deposit intangible (3) | — | 8,845 | 8,845 | ||||||||
Other assets (4) | 47,729 | 8,774 | 56,503 | ||||||||
Total Assets | $ | 1,234,705 | $ | (10,633 | ) | $ | 1,224,072 | ||||
Liabilities | |||||||||||
Interest-bearing deposits (5) | $ | 741,635 | $ | 1,400 | $ | 743,035 | |||||
Non-interest bearing deposits | 223,685 | — | 223,685 | ||||||||
Borrowings (6) | 142,639 | 3,240 | 145,879 | ||||||||
Other liabilities | 29,719 | 59 | 29,778 | ||||||||
Total Liabilities | $ | 1,137,678 | $ | 4,699 | $ | 1,142,377 | |||||
Net Assets Acquired | $ | 97,027 | $ | (15,332 | ) | $ | 81,695 |
(1) | The amount represents the adjustment of the book value of Avenue's investment securities to their estimated fair value on the date of acquisition. |
(2) | The amount represents the adjustment of the net book value of Avenue's loans to their estimated fair value based on interest rates and expected cash flows as of the date of acquisition, which includes estimates of expected credit losses inherent in the portfolio. |
(3) | The amount represents the fair value of the core deposit intangible asset representing the intangible value of the deposit base acquired. |
(4) | The amount represents the deferred tax asset recognized on the fair value adjustment of Avenue's acquired assets and assumed liabilities as well as the fair value adjustment for property and equipment. |
(5) | The amount represents the adjustment necessary because the weighted average interest rate of Avenue's deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. |
(6) | The amount represents the adjustment necessary because the weighted average interest rate of Avenue's FHLB advances and subordinated debt issuance exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. |
Number of Shares | Amount | |||||
Equity consideration: | ||||||
Common stock issued | 27,687,100 | $ | 1,858,133 | |||
Total equity consideration | $ | 1,858,133 | ||||
Non-equity consideration: | ||||||
Cash paid to redeem common stock | $ | 129 | ||||
Total consideration paid | $ | 1,858,262 | ||||
Allocation of total consideration paid: | ||||||
Fair value of net assets assumed including estimated identifiable intangible assets | $ | 609,068 | ||||
Goodwill | 1,249,194 | |||||
$ | 1,858,262 |
As of June 16, 2017 | |||||||||||
BNC Historical Cost Basis | Preliminary Fair Value Adjustments | As Recorded by Pinnacle Financial | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 155,271 | $ | — | $ | 155,271 | |||||
Investment securities (1) | 643,875 | 1,667 | 645,542 | ||||||||
Loans (2) | 5,782,720 | (175,473 | ) | 5,607,247 | |||||||
Mortgage loans held for sale | 27,026 | — | 27,026 | ||||||||
Other real estate owned | 20,143 | — | 20,143 | ||||||||
Core deposit intangible (3) | — | 48,528 | 48,528 | ||||||||
Property, plant and equipment (4) | 156,805 | — | 156,805 | ||||||||
Other assets (5) | 320,988 | 49,311 | 370,299 | ||||||||
Total Assets | $ | 7,106,828 | $ | (75,967 | ) | $ | 7,030,861 | ||||
Liabilities | |||||||||||
Interest-bearing deposits (6) | $ | 5,003,653 | $ | 4,355 | $ | 5,008,008 | |||||
Non-interest bearing deposits | 1,199,342 | — | 1,199,342 | ||||||||
Borrowings (7) | 183,389 | (6,412 | ) | 176,977 | |||||||
Other liabilities | 35,729 | 1,737 | 37,466 | ||||||||
Total Liabilities | $ | 6,422,113 | $ | (320 | ) | $ | 6,421,793 | ||||
Net Assets Acquired | $ | 684,715 | $ | (75,647 | ) | $ | 609,068 |
(1) | The amount represents the adjustment of the book value of BNC's investment securities to their estimated fair value on the date of acquisition. |
(2) | The amount represents the adjustment of the net book value of BNC's loans to their estimated fair value based on interest rates and expected cash flows as of the date of acquisition, which includes estimates of expected credit losses inherent in the portfolio of approximately 2.5% of the 3% mark on the acquired loan portfolio. |
(3) | The amount represents the fair value of the core deposit intangible asset representing the intangible value of the deposit base acquired and the fair value of the customer relationship intangible asset representing the intangible value of customer relationships acquired. |
(4) | A fair value adjustment for property and equipment will be recorded, but no estimate is determinable at this time. |
(5) | The amount represents the deferred tax asset recognized on the fair value adjustment of BNC's acquired assets and assumed liabilities. |
(6) | The amount represents the adjustment necessary because the weighted average interest rate of BNC's deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. |
(7) | The amount represents the combined adjustment necessary because the weighted average interest rate of BNC's subordinated debt issuance exceeded the cost of similar funding at the time of acquisition and because the weighted average interest rate of BNC's trust preferred securities issuances was lower than the cost of similar funding at the time of acquisition. The combined fair value adjustments will be amortized to increase future interest expense over the lives of the portfolios. |
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenue (1) | $ | 204,172 | $ | 180,436 | $ | 400,407 | $ | 328,384 | |||||||||
Income before income taxes | $ | 90,743 | $ | 66,510 | $ | 163,298 | $ | 127,744 |
(1) | Net interest income plus noninterest income. |
As of | |||||||
June 30, 2017 | December 31, 2016 | ||||||
Assets | $ | 253,355 | $ | 223,246 | |||
Liabilities | 169,357 | 139,531 | |||||
Membership interests | 83,998 | 83,715 | |||||
Total liabilities and membership | $ | 253,355 | $ | 223,246 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | $ | 37,012 | $ | 39,330 | $ | 71,247 | $ | 70,618 | |||||||
Net income | $ | 18,013 | $ | 21,439 | $ | 34,024 | $ | 33,593 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
June 30, 2017: | |||||||||||||||
Securities available-for-sale: | |||||||||||||||
U.S. Treasury securities | $ | 250 | $ | 1 | $ | — | $ | 251 | |||||||
U.S. government agency securities | 62,659 | — | 759 | 61,900 | |||||||||||
Mortgage-backed securities | 1,548,758 | 5,440 | 15,148 | 1,539,050 | |||||||||||
State and municipal securities | 532,508 | 5,209 | 4,115 | 533,602 | |||||||||||
Asset-backed securities | 190,560 | 134 | 474 | 190,220 | |||||||||||
Corporate notes and other | 102,016 | 182 | 187 | 102,011 | |||||||||||
$ | 2,436,751 | $ | 10,966 | $ | 20,683 | $ | 2,427,034 | ||||||||
Securities held-to-maturity: | |||||||||||||||
State and municipal securities | $ | 21,163 | $ | 199 | $ | 40 | $ | 21,322 | |||||||
$ | 21,163 | $ | 199 | $ | 40 | $ | 21,322 |
December 31, 2016: | |||||||||||||||
Securities available-for-sale: | |||||||||||||||
U.S. Treasury securities | $ | 250 | $ | — | $ | — | $ | 250 | |||||||
U.S. government agency securities | 22,306 | — | 537 | 21,769 | |||||||||||
Mortgage-backed securities | 988,008 | 4,304 | 15,686 | 976,626 | |||||||||||
State and municipal securities | 211,581 | 4,103 | 2,964 | 212,720 | |||||||||||
Asset-backed securities | 79,318 | 111 | 849 | 78,580 | |||||||||||
Corporate notes and other | 8,608 | 39 | 46 | 8,601 | |||||||||||
$ | 1,310,071 | $ | 8,557 | 20,082 | $ | 1,298,546 | |||||||||
Securities held-to-maturity: | |||||||||||||||
State and municipal securities | $ | 25,251 | $ | 87 | $ | 105 | $ | 25,233 | |||||||
$ | 25,251 | $ | 87 | $ | 105 | $ | 25,233 |
Available-for-sale | Held-to-maturity | ||||||||||||||
June 30, 2017: | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Due in one year or less | $ | 31,917 | $ | 31,811 | $ | 1,021 | $ | 1,023 | |||||||
Due in one year to five years | 82,347 | 83,312 | 6,603 | 6,631 | |||||||||||
Due in five years to ten years | 166,329 | 168,799 | 10,219 | 10,323 | |||||||||||
Due after ten years | 416,840 | 413,842 | 3,320 | 3,345 | |||||||||||
Mortgage-backed securities | 1,548,758 | 1,539,050 | — | — | |||||||||||
Asset-backed securities | 190,560 | 190,220 | — | — | |||||||||||
$ | 2,436,751 | $ | 2,427,034 | $ | 21,163 | $ | 21,322 |
Investments with an Unrealized Loss of less than 12 months | Investments with an Unrealized Loss of 12 months or longer | Total Investments with an Unrealized Loss | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
At June 30, 2017 | |||||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
U.S. government agency securities | 49,120 | 536 | 12,780 | 223 | 61,900 | 759 | |||||||||||||||||
Mortgage-backed securities | 1,097,974 | 13,490 | 85,658 | 1,658 | 1,183,632 | 15,148 | |||||||||||||||||
State and municipal securities | 324,824 | 3,379 | 20,830 | 776 | 345,654 | 4,155 | |||||||||||||||||
Asset-backed securities | 113,296 | 157 | 19,153 | 317 | 132,449 | 474 | |||||||||||||||||
Corporate notes | 62,023 | 187 | — | — | 62,023 | 187 | |||||||||||||||||
Total temporarily-impaired securities | $ | 1,647,237 | $ | 17,749 | $ | 138,421 | $ | 2,974 | $ | 1,785,658 | $ | 20,723 | |||||||||||
At December 31, 2016 | |||||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
U.S. government agency securities | — | — | 20,820 | 537 | 20,820 | 537 | |||||||||||||||||
Mortgage-backed securities | 801,213 | 15,073 | 43,148 | 613 | 844,361 | 15,686 | |||||||||||||||||
State and municipal securities | 87,277 | 3,068 | 312 | 1 | 87,589 | 3,069 | |||||||||||||||||
Asset-backed securities | 14,510 | 32 | 34,097 | 817 | 48,607 | 849 | |||||||||||||||||
Corporate notes | 4,810 | 46 | — | — | 4,810 | 46 | |||||||||||||||||
Total temporarily-impaired securities | $ | 907,810 | $ | 18,219 | $ | 98,377 | $ | 1,968 | $ | 1,006,187 | $ | 20,187 |
• | Commercial real-estate mortgage loans. Commercial real-estate mortgage loans are categorized as such based on investor exposures where repayment is largely dependent upon the operation, refinance, or sale of the underlying real estate. Commercial real-estate mortgage also includes owner occupied commercial real estate which shares a similar risk profile to Pinnacle Financial's commercial and industrial products. |
• | Consumer real-estate mortgage loans. Consumer real-estate mortgage consists primarily of loans secured by 1-4 residential properties, including home equity lines of credit. |
• | Construction and land development loans. Construction and land development loans include loans where the repayment is dependent on the successful operation of the related real estate project. Construction and land development loans include 1-4 family construction projects and commercial construction endeavors such as warehouses, apartments, office and retail space and land acquisition and development. |
• | Commercial and industrial loans. Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. |
• | Consumer and other loans. Consumer and other loans include all loans issued to individuals not included in the consumer real-estate mortgage classification. Examples of consumer and other loans are automobile loans, credit cards and loans to finance education, among others. |
• | Special mention loans have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in Pinnacle Financial's credit position at some future date. |
• | Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize collection of the debt. Substandard loans are characterized by the distinct possibility that Pinnacle Financial will sustain some loss if the deficiencies are not corrected. |
• | Substandard-nonaccrual loans are substandard loans that have been placed on nonaccrual status. |
• | Doubtful-nonaccrual loans have all the characteristics of substandard-nonaccrual loans with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. |
Commercial real estate - mortgage | Consumer real estate - mortgage | Construction and land development | Commercial and industrial | Consumer and other | Total | ||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||
Pass | $ | 6,192,533 | $ | 2,449,319 | $ | 1,737,057 | $ | 3,565,754 | $ | 355,314 | $ | 14,299,977 | |||||||||||
Special Mention | 112,120 | 58,928 | 12,628 | 36,759 | 1,432 | 221,867 | |||||||||||||||||
Substandard (1) | 72,603 | 26,116 | 19,241 | 78,637 | 108 | 196,705 | |||||||||||||||||
Substandard-nonaccrual | 10,042 | 17,810 | 3,873 | 7,206 | 456 | 39,387 | |||||||||||||||||
Doubtful-nonaccrual | 74 | 754 | — | 1 | — | 829 | |||||||||||||||||
Total loans | $ | 6,387,372 | $ | 2,552,927 | $ | 1,772,799 | $ | 3,688,357 | $ | 357,310 | $ | 14,758,765 |
December 31, 2016 | |||||||||||||||||||||||
Pass | $ | 3,137,452 | $ | 1,160,361 | $ | 897,556 | $ | 2,782,713 | $ | 264,723 | $ | 8,242,805 | |||||||||||
Special Mention | 21,449 | 1,856 | 2,716 | 25,641 | 802 | 52,464 | |||||||||||||||||
Substandard (1) | 29,674 | 15,627 | 5,788 | 75,861 | 129 | 127,079 | |||||||||||||||||
Substandard-nonaccrual | 4,921 | 8,073 | 6,613 | 7,492 | 475 | 27,574 | |||||||||||||||||
Doubtful-nonaccrual | — | — | — | 3 | — | 3 | |||||||||||||||||
Total loans | $ | 3,193,496 | $ | 1,185,917 | $ | 912,673 | $ | 2,891,710 | $ | 266,129 | $ | 8,449,925 |
(1) | Potential problem loans represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower's ability to comply with present repayment terms. This definition is believed to be substantially consistent with the standards established by Pinnacle Bank's primary regulators for loans classified as substandard, excluding the impact of nonaccrual loans and troubled debt restructurings. Potential problem loans, which are not included in nonaccrual loans, amounted to approximately $182.5 million at June 30, 2017, compared to $114.6 million at December 31, 2016. |
Commercial real estate - mortgage | Consumer real estate - mortgage | Construction and land development | Commercial and industrial | Consumer and other | Fair value adjustment | Net total acquired loans | |||||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||||||
Pass | $ | 3,029,203 | $ | 1,247,986 | $ | 699,921 | $ | 489,340 | $ | 79,163 | $ | (143,783 | ) | $ | 5,401,830 | ||||||||||||
Special Mention | 73,517 | 58,876 | 9,385 | 7,881 | 678 | (5,111 | ) | 145,226 | |||||||||||||||||||
Substandard (1) | 46,825 | 14,650 | 17,717 | 9,881 | — | (16,335 | ) | 72,738 | |||||||||||||||||||
Substandard-nonaccrual | 9,719 | 12,302 | 1,157 | 1,783 | 4 | (7,257 | ) | 17,708 | |||||||||||||||||||
Doubtful-nonaccrual | 193 | 858 | — | — | — | (220 | ) | 831 | |||||||||||||||||||
Total loans | $ | 3,159,457 | $ | 1,334,672 | $ | 728,180 | $ | 508,885 | $ | 79,845 | $ | (172,706 | ) | $ | 5,638,333 |
Gross Carrying Value | Accretable Yield | Nonaccretable Yield | Net Carrying Value | ||||||||||||
December 31, 2016 | $ | 12,468 | $ | — | $ | (3,633 | ) | $ | 8,835 | ||||||
Acquisitions | 75,425 | (300 | ) | (25,953 | ) | 49,172 | |||||||||
Year-to-date settlements | (2,919 | ) | 2 | 796 | (2,121 | ) | |||||||||
June 30, 2017 | $ | 84,974 | $ | (298 | ) | $ | (28,790 | ) | $ | 55,886 |
At June 30, 2017 | At December 31, 2016 | ||||||||||||||||||||||
Recorded investment | Unpaid principal balances(1) | Related allowance(2) | Recorded investment | Unpaid principal balances(1) | Related allowance(2) | ||||||||||||||||||
Collateral dependent nonaccrual loans: | |||||||||||||||||||||||
Commercial real estate – mortgage | $ | 9,532 | $ | 12,824 | $ | — | $ | 2,308 | $ | 2,312 | $ | — | |||||||||||
Consumer real estate – mortgage | 14,539 | 17,508 | — | 2,880 | 2,915 | — | |||||||||||||||||
Construction and land development | 1,935 | 2,192 | — | 3,128 | 3,135 | — | |||||||||||||||||
Commercial and industrial | 6,270 | 7,270 | — | 6,373 | 6,407 | — | |||||||||||||||||
Consumer and other | 2 | 2 | — | — | — | — | |||||||||||||||||
Total | $ | 32,278 | $ | 39,796 | $ | — | $ | 14,689 | $ | 14,769 | $ | — | |||||||||||
Cash flow dependent nonaccrual loans: | |||||||||||||||||||||||
Commercial real estate – mortgage | $ | 584 | $ | 810 | $ | 38 | $ | 2,613 | $ | 3,349 | $ | 59 | |||||||||||
Consumer real estate – mortgage | 4,025 | 4,077 | 941 | 5,193 | 5,775 | 688 | |||||||||||||||||
Construction and land development | 1,938 | 2,384 | 22 | 3,485 | 4,154 | 20 | |||||||||||||||||
Commercial and industrial | 938 | 936 | 172 | 1,122 | 2,714 | 77 | |||||||||||||||||
Consumer and other | 453 | 498 | 232 | 475 | 851 | 227 | |||||||||||||||||
Total | $ | 7,938 | $ | 8,705 | $ | 1,405 | $ | 12,888 | $ | 16,843 | $ | 1,071 | |||||||||||
Total nonaccrual loans | $ | 40,216 | $ | 48,501 | $ | 1,405 | $ | 27,577 | $ | 31,612 | $ | 1,071 |
(1) | Unpaid principal balance presented net of fair value adjustments recorded in conjunction with purchase accounting. |
(2) | Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||
Average recorded investment | Interest income recognized | Average recorded investment | Interest income recognized | Average recorded investment | Interest income recognized | Average recorded investment | Interest income recognized | ||||||||||||||||||||||||
Collateral dependent nonaccrual loans: | |||||||||||||||||||||||||||||||
Commercial real estate – mortgage | $ | 4,019 | $ | — | $ | 3,845 | $ | — | $ | 3,298 | $ | — | $ | 3,474 | $ | — | |||||||||||||||
Consumer real estate – mortgage | 6,000 | — | 4,125 | — | 5,188 | — | 4,140 | — | |||||||||||||||||||||||
Construction and land development | 665 | 16 | 7,125 | 41 | 592 | 65 | 7,293 | 88 | |||||||||||||||||||||||
Commercial and industrial | 6,341 | — | 12,107 | — | 6,356 | — | 11,928 | — | |||||||||||||||||||||||
Consumer and other | 1 | — | 383 | — | — | — | 385 | — | |||||||||||||||||||||||
Total | $ | 17,026 | $ | 16 | $ | 27,585 | $ | 41 | $ | 15,434 | $ | 65 | $ | 27,220 | $ | 88 | |||||||||||||||
Cash flow dependent nonaccrual loans: | |||||||||||||||||||||||||||||||
Commercial real estate – mortgage | $ | 619 | $ | — | $ | 1,352 | $ | — | $ | 1,166 | $ | — | $ | 725 | $ | — | |||||||||||||||
Consumer real estate – mortgage | 4,126 | — | 3,163 | — | 4,197 | — | 3,181 | — | |||||||||||||||||||||||
Construction and land development | 1,928 | — | 130 | — | 2,119 | — | 134 | — | |||||||||||||||||||||||
Commercial and industrial | 1,221 | — | 1,838 | — | 1,345 | — | 2,396 | — | |||||||||||||||||||||||
Consumer and other | 1,821 | — | 2,936 | — | 2,409 | — | 2,973 | — | |||||||||||||||||||||||
Total | $ | 9,715 | $ | — | $ | 9,419 | $ | — | $ | 11,236 | $ | — | $ | 9,409 | $ | — | |||||||||||||||
Total nonaccrual loans | $ | 26,741 | $ | 16 | $ | 37,004 | $ | 41 | $ | 26,670 | $ | 65 | $ | 36,629 | $ | 88 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2017 | Number of contracts | Pre Modification Outstanding Recorded Investment | Post Modification Outstanding Recorded Investment, net of related allowance | Number of contracts | Pre Modification Outstanding Recorded Investment | Post Modification Outstanding Recorded Investment, net of related allowance | |||||||||||||||
Commercial real estate – mortgage | — | $ | — | $ | — | — | $ | — | $ | — | |||||||||||
Consumer real estate – mortgage | 1 | 9 | 6 | 1 | 9 | 6 | |||||||||||||||
Construction and land development | — | — | — | — | — | — | |||||||||||||||
Commercial and industrial | — | — | — | 2 | 2,033 | 2,033 | |||||||||||||||
Consumer and other | — | — | — | — | — | — | |||||||||||||||
1 | $ | 9 | $ | 6 | 3 | $ | 2,042 | $ | 2,039 | ||||||||||||
2016 | |||||||||||||||||||||
Commercial real estate – mortgage | — | $ | — | $ | — | — | $ | — | $ | — | |||||||||||
Consumer real estate – mortgage | — | — | — | — | — | — | |||||||||||||||
Construction and land development | — | — | — | — | — | — | |||||||||||||||
Commercial and industrial | — | — | — | 1 | 2,321 | 1,536 | |||||||||||||||
Consumer and other | — | — | — | — | — | — | |||||||||||||||
— | $ | — | $ | — | 1 | $ | 2,321 | $ | 1,536 |
June 30, 2017 | |||||||||||||||
Outstanding Principal Balances | Unfunded Commitments | Total exposure | Total Exposure at December 31, 2016 | ||||||||||||
Lessors of nonresidential buildings | $ | 2,679,712 | $ | 542,158 | $ | 3,221,870 | $ | 1,701,853 | |||||||
Lessors of residential buildings | 879,787 | 289,682 | 1,169,469 | 874,234 |
Accruing | Nonaccruing | ||||||||||||||||||||||||||||||
June 30, 2017 | 30-89 days past due and accruing | 90 days or more past due and accruing | Total past due and accruing | Purchased credit impaired | Current and accruing | Nonaccrual (1) | Purchased credit impaired | Total loans | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||
Owner-occupied | $ | 3,872 | $ | — | $ | 3,872 | $ | 6,545 | $ | 2,352,679 | $ | 2,249 | $ | 3,296 | $ | 2,368,641 | |||||||||||||||
All other | 1,820 | — | 1,820 | 11,061 | 4,001,279 | 819 | 3,752 | 4,018,731 | |||||||||||||||||||||||
Consumer real estate – mortgage | 7,689 | — | 7,689 | 9,081 | 2,517,593 | 8,133 | 10,431 | 2,552,927 | |||||||||||||||||||||||
Construction and land development | 6,250 | — | 6,250 | 7,628 | 1,755,049 | 1,121 | 2,751 | 1,772,799 | |||||||||||||||||||||||
Commercial and industrial | 2,880 | 1,072 | 3,952 | 559 | 3,676,638 | 6,429 | 779 | 3,688,357 | |||||||||||||||||||||||
Consumer and other | 4,692 | 619 | 5,311 | — | 351,543 | 453 | 3 | 357,310 | |||||||||||||||||||||||
$ | 27,203 | $ | 1,691 | $ | 28,894 | $ | 34,874 | $ | 14,654,781 | $ | 19,204 | $ | 21,012 | $ | 14,758,765 |
December 31, 2016 | |||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||
Owner-occupied | $ | 3,505 | $ | — | $ | 3,505 | $ | — | $ | 1,347,134 | $ | 2,297 | $ | 1,956 | $ | 1,354,893 | |||||||||||||||
All other | — | — | — | — | 1,837,936 | 240 | 428 | 1,838,603 | |||||||||||||||||||||||
Consumer real estate – mortgage | 3,838 | 53 | 3,891 | — | 1,173,953 | 5,554 | 2,520 | 1,185,917 | |||||||||||||||||||||||
Construction and land development | 2,210 | — | 2,210 | — | 903,850 | 3,205 | 3,408 | 912,673 | |||||||||||||||||||||||
Commercial and industrial | 4,475 | — | 4,475 | — | 2,879,740 | 6,971 | 524 | 2,891,710 | |||||||||||||||||||||||
Consumer and other | 7,168 | 1,081 | 8,249 | — | 257,405 | 475 | — | 266,129 | |||||||||||||||||||||||
$ | 21,196 | $ | 1,134 | $ | 22,330 | $ | — | $ | 8,400,018 | $ | 18,742 | $ | 8,836 | $ | 8,449,925 |
(1) | Approximately $10.0 million and $16.7 million of nonaccrual loans as of June 30, 2017 and December 31, 2016, respectively, were performing pursuant to their contractual terms at those dates. |
Impaired Loans | |||||||||||||||||||||||||||||||
Accruing Loans | Nonaccrual Loans | Troubled Debt Restructurings (1) | Total Allowance for Loan Losses | ||||||||||||||||||||||||||||
June 30, 2017 | December 31, 2016 | June 30, 2017 | December 31, 2016 | June 30, 2017 | December 31, 2016 | June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||
Commercial real estate –mortgage | $ | 15,963 | $ | 13,595 | $ | 38 | $ | 59 | $ | 1 | $ | 1 | $ | 16,002 | $ | 13,655 | |||||||||||||||
Consumer real estate – mortgage | 6,891 | 5,874 | 941 | 688 | 3 | 2 | 7,835 | 6,564 | |||||||||||||||||||||||
Construction and land development | 5,104 | 3,604 | 22 | 20 | — | — | 5,126 | 3,624 | |||||||||||||||||||||||
Commercial and industrial | 24,005 | 24,648 | 172 | 77 | 58 | 18 | 24,235 | 24,743 | |||||||||||||||||||||||
Consumer and other | 7,317 | 9,293 | 232 | 227 | — | — | 7,549 | 9,520 | |||||||||||||||||||||||
Unallocated | — | — | — | — | — | — | 1,197 | 874 | |||||||||||||||||||||||
$ | 59,280 | $ | 57,014 | $ | 1,405 | $ | 1,071 | $ | 62 | $ | 21 | $ | 61,944 | $ | 58,980 |
(1) | Troubled debt restructurings of $14.2 million and $15.0 million as of both June 30, 2017 and December 31, 2016, respectively, are classified as impaired loans pursuant to U.S. GAAP; however, these loans continue to accrue interest at contractual rates. |
Commercial real estate - mortgage | Consumer real estate - mortgage | Construction and land development | Commercial and industrial | Consumer and other | Unallocated | Total | |||||||||||||||||||||
Three months ended June 30, 2017: | |||||||||||||||||||||||||||
Balance at April 1, 2017 | $ | 14,168 | $ | 7,219 | $ | 4,441 | $ | 22,912 | $ | 8,477 | $ | 1,133 | $ | 58,350 | |||||||||||||
Charged-off loans | (8 | ) | (206 | ) | — | (495 | ) | (4,448 | ) | — | (5,157 | ) | |||||||||||||||
Recovery of previously charged-off loans | 9 | 412 | 96 | 560 | 862 | — | 1,939 | ||||||||||||||||||||
Provision for loan losses | 1,833 | 410 | 589 | 1,258 | 2,658 | 64 | 6,812 | ||||||||||||||||||||
Balance at June 30, 2017 | $ | 16,002 | $ | 7,835 | $ | 5,126 | $ | 24,235 | $ | 7,549 | $ | 1,197 | $ | 61,944 | |||||||||||||
Three months ended June 30, 2016: | |||||||||||||||||||||||||||
Balance at April 1, 2016 | $ | 13,551 | $ | 7,169 | $ | 3,942 | $ | 24,144 | $ | 11,858 | $ | 1,575 | $ | 62,239 | |||||||||||||
Charged-off loans | (196 | ) | (180 | ) | — | (619 | ) | (6,151 | ) | — | (7,146 | ) | |||||||||||||||
Recovery of previously charged-off loans | 135 | 71 | 81 | 182 | 570 | — | 1,039 | ||||||||||||||||||||
Provision for loan losses | 175 | (520 | ) | (100 | ) | 1,383 | 4,861 | (519 | ) | 5,280 | |||||||||||||||||
Balance at June 30, 2016 | $ | 13,665 | $ | 6,540 | $ | 3,923 | $ | 25,090 | $ | 11,138 | $ | 1,056 | $ | 61,412 | |||||||||||||
Six months ended June 30, 2017: | |||||||||||||||||||||||||||
Balance at December 31, 2016 | $ | 13,655 | $ | 6,564 | $ | 3,624 | $ | 24,743 | $ | 9,520 | $ | 874 | $ | 58,980 | |||||||||||||
Charged-off loans | (9 | ) | (268 | ) | — | (1,653 | ) | (8,391 | ) | — | (10,321 | ) | |||||||||||||||
Recovery of previously charged-off loans | 15 | 582 | 129 | 702 | 1,394 | — | 2,822 | ||||||||||||||||||||
Provision for loan losses | 2,341 | 957 | 1,373 | 443 | 5,026 | 323 | 10,463 | ||||||||||||||||||||
Balance at June 30, 2017 | $ | 16,002 | $ | 7,835 | $ | 5,126 | $ | 24,235 | $ | 7,549 | $ | 1,197 | $ | 61,944 | |||||||||||||
Six months ended June 30, 2016: | |||||||||||||||||||||||||||
Balance at December 31, 2015 | $ | 15,513 | $ | 7,220 | $ | 2,903 | $ | 23,643 | $ | 15,616 | $ | 537 | $ | 65,432 | |||||||||||||
Charged-off loans | (196 | ) | (379 | ) | — | (2,243 | ) | (13,555 | ) | — | (16,373 | ) | |||||||||||||||
Recovery of previously charged-off loans | 193 | 156 | 106 | 1,615 | 1,109 | — | 3,179 | ||||||||||||||||||||
Provision for loan losses | (1,845 | ) | (457 | ) | 914 | 2,075 | 7,968 | 519 | 9,174 | ||||||||||||||||||
Balance at June 30, 2016 | $ | 13,665 | $ | 6,540 | $ | 3,923 | $ | 25,090 | $ | 11,138 | $ | 1,056 | $ | 61,412 |
Commercial real estate - mortgage | Consumer real estate - mortgage | Construction and land development | Commercial and industrial | Consumer and other | Unallocated | Total | |||||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 15,963 | $ | 6,891 | $ | 5,104 | $ | 24,005 | $ | 7,317 | $ | 1,197 | $ | 60,477 | |||||||||||||
Individually evaluated for impairment | 39 | 944 | 22 | 230 | 232 | — | 1,467 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | — | — | — | — | — | — | — | ||||||||||||||||||||
Total allowance for loan losses | $ | 16,002 | $ | 7,835 | $ | 5,126 | $ | 24,235 | $ | 7,549 | $ | 1,197 | $ | 61,944 | |||||||||||||
Loans: | |||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 6,359,443 | $ | 2,522,372 | $ | 1,761,298 | $ | 3,669,480 | $ | 356,833 | $ | 14,669,426 | |||||||||||||||
Individually evaluated for impairment | 3,275 | 11,043 | 1,122 | 17,536 | 477 | 33,453 | |||||||||||||||||||||
Loans acquired with deteriorated credit quality | 24,654 | 19,512 | 10,379 | 1,341 | — | 55,886 | |||||||||||||||||||||
Total loans | $ | 6,387,372 | $ | 2,552,927 | $ | 1,772,799 | $ | 3,688,357 | $ | 357,310 | $ | 14,758,765 | |||||||||||||||
December 31, 2016 | |||||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 13,595 | $ | 5,874 | $ | 3,604 | $ | 24,648 | $ | 9,293 | $ | 874 | $ | 57,888 | |||||||||||||
Individually evaluated for impairment | 60 | 690 | 20 | 95 | 227 | — | 1,092 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | — | — | — | — | — | — | — | ||||||||||||||||||||
Total allowance for loan losses | $ | 13,655 | $ | 6,564 | $ | 3,624 | $ | 24,743 | $ | 9,520 | $ | 874 | $ | 58,980 | |||||||||||||
Loans: | |||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 3,188,362 | $ | 1,174,456 | $ | 906,053 | $ | 2,872,855 | $ | 265,613 | $ | 8,407,339 | |||||||||||||||
Individually evaluated for impairment | 2,750 | 8,941 | 3,212 | 18,331 | 516 | 33,750 | |||||||||||||||||||||
Loans acquired with deteriorated credit quality | 2,384 | 2,520 | 3,408 | 524 | — | 8,836 | |||||||||||||||||||||
Total loans | $ | 3,193,496 | $ | 1,185,917 | $ | 912,673 | $ | 2,891,710 | $ | 266,129 | $ | 8,449,925 |
Number | Weighted- Average Exercise Price | Weighted- Average Contractual Remaining Term (in years) | Aggregate Intrinsic Value (000's) | ||||||||||
Outstanding at December 31, 2016 | 550,490 | $ | 20.75 | 2.61 | $ | 26,728 | (1) | ||||||
Granted | — | ||||||||||||
Exercised (3) | (184,181 | ) | |||||||||||
Forfeited | — | ||||||||||||
Outstanding at June 30, 2017 | 366,309 | $ | 21.23 | 3.18 | $ | 15,228 | (2) | ||||||
Options exercisable at June 30, 2017 | 366,309 | $ | 21.23 | 3.18 | $ | 15,228 | (2) |
(1) | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $69.30 per common share at December 31, 2016 for the 550,490 options that were in-the-money at December 31, 2016. |
(2) | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $62.80 per common share at June 30, 2017 for the 366,309 options that were in-the-money at June 30, 2017. |
(3) | Includes 750 stock options which were exercised in a stock swap transaction which settled in 277 shares of Pinnacle Financial common stock. |
Number | Grant Date Weighted-Average Cost | |||||
Unvested at December 31, 2016 | 820,539 | $ | 36.47 | |||
Shares awarded | 233,340 | |||||
Conversion of previously awarded restricted share units to restricted share awards | 43,680 | |||||
Shares assumed in connection with acquisition of BNC | 136,890 | |||||
Restrictions lapsed and shares released to associates/directors | (212,659 | ) | ||||
Shares forfeited (1) | (17,765 | ) | ||||
Unvested at June 30, 2017 | 1,004,025 | $ | 50.10 |
(1) | Represents shares forfeited due to employee termination and/or retirement. No shares were forfeited due to failure to meet performance targets. |
Grant Year | Group (1) | Vesting Period in years | Shares awarded | Restrictions Lapsed and shares released to participants | Shares Forfeited by participants (6) | Shares Unvested | ||||||||||
Time Based Awards | ||||||||||||||||
2017 | Associates (2) | 3 - 5 | 82,973 | 298 | 151 | 82,524 | ||||||||||
2017 | Associates (3) | 3 - 5 | 136,690 | — | — | 136,690 | ||||||||||
Performance Based Awards | ||||||||||||||||
2017 | Leadership team (4) | 3 | 43,680 | — | — | 43,680 | ||||||||||
Outside Director Awards (5) | ||||||||||||||||
2017 | Outside directors | 1 | 13,677 | 2,376 | 796 | 10,505 |
(1) | Groups include employees (referred to as associates above), the leadership team which includes our named executive officers and other key senior leadership members, and outside directors. When the restricted shares are awarded, a participant receives voting rights and forfeitable dividend rights with respect to the shares, but is not able to transfer the shares until the restrictions have lapsed. Once the restrictions lapse, the participant is taxed on the value of the award and may elect to sell some shares (or have Pinnacle Financial withhold some shares) to pay the applicable income taxes associated with the award. For time-based restricted share awards, dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by Pinnacle Financial at the time of termination. For performance-based awards and time-based awards to Pinnacle Financial's executive officers, dividends are placed into escrow until the forfeiture restrictions on such shares lapse. |
(2) | The forfeiture restrictions on these restricted share awards lapse in equal annual installments on the anniversary date of the grant. |
(3) | Restricted share awards issued to associates that were former associates of BNC in connection with acquisition of BNC. |
(4) | Reflects conversion of restricted share units issued in prior years to restricted share awards. The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain soundness targets over each year of the subsequent vesting period. See further details of these awards under the caption "Restricted Share Units" below. |
(5) | Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapse on February 28, 2018 based on each individual board member meeting their attendance goals for the various board and board committee meetings to which each member was scheduled to attend. |
(6) | These shares represent forfeitures resulting from recipients whose employment or board membership is terminated during the year-to-date period ended June 30, 2017. Any dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by Pinnacle Financial at the time of termination. |
Units Awarded | |||||||||||||
Grant year | Named Executive Officers (NEOs) (1) | Leadership Team other than NEOs | Applicable Performance Periods associated with each tranche (fiscal year) | Service period per tranche (in years) | Subsequent holding period per tranche (in years) | Shares settled into RSAs as of period end (2) | |||||||
2017 | 72,537-109,339 | 24,916 | 2017 | 2 | 3 | N/A | |||||||
2018 | 2 | 2 | N/A | ||||||||||
2019 | 2 | 1 | N/A | ||||||||||
2016 | 73,474-110,223 | 26,683 | 2016 | 2 | 3 | N/A | |||||||
2017 | 2 | 2 | N/A | ||||||||||
2018 | 2 | 1 | N/A | ||||||||||
2015 | 58,200-101,850 | 28,378 | 2015 | 2 | 3 | N/A | |||||||
2016 | 2 | 2 | N/A | ||||||||||
2017 | 2 | 1 | N/A | ||||||||||
2014 (3) | 58,404-102,209 | 29,087 | 2014 | 5 | N/A | 21,856 | |||||||
2014 | 4 | N/A | 21,856 | ||||||||||
2015 | 4 | N/A | 21,847 | ||||||||||
2015 | 3 | N/A | 21,847 | ||||||||||
2016 | 3 | N/A | 21,840 | ||||||||||
2016 | 2 | N/A | 21,840 |
(1) | The named executive officers are awarded a range of awards that may be earned based on attainment of goals between a target level of performance and a maximum level of performance. |
(2) | Restricted share unit awards granted in 2017, 2016 and 2015 will be earned if certain performance targets are achieved and thereafter will be settled in shares of Pinnacle Financial common stock, for which additional forfeiture restrictions may lapse based on Pinnacle Financial's performance in future periods. |
(3) | Restrictions on half of the shares previously converted to RSAs will lapse commensurate with the filing of the Form 10-K for the year ended December 31, 2017 and 2018, respectively. |
June 30, 2017 | December 31, 2016 | ||||||||||||||
Notional Amount | Estimated Fair Value | Notional Amount | Estimated Fair Value | ||||||||||||
Interest rate swap agreements: | |||||||||||||||
Pay fixed / receive variable swaps | $ | 690,874 | $ | 16,218 | $ | 666,572 | $ | 16,004 | |||||||
Pay variable / receive fixed swaps | 690,874 | (16,339 | ) | 666,572 | (16,138 | ) | |||||||||
Total | $ | 1,381,748 | $ | (121 | ) | $ | 1,333,144 | $ | (134 | ) |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||||
Forecasted Notional Amount | Receive Rate | Pay Rate | Term (1) | Asset/ (Liabilities) | Unrealized Loss in Accumulated Other Comprehensive Income | Asset/ (Liabilities) | Unrealized Loss in Accumulated Other Comprehensive Income | ||||||||||||||||||||
Interest Rate Swap | $ | 33,000 | 3 month LIBOR | 2.265 | % | April 2016-April 2020 | $ | (617 | ) | $ | (375 | ) | $ | (727 | ) | $ | (442 | ) | |||||||||
Interest Rate Swap | 33,000 | 3 month LIBOR | 2.646 | % | April 2016-April 2022 | (1,286 | ) | (782 | ) | (1,304 | ) | (792 | ) | ||||||||||||||
Interest Rate Swap | 33,000 | 3 month LIBOR | 2.523 | % | Oct. 2016-Oct. 2020 | (970 | ) | (589 | ) | (1,081 | ) | (657 | ) | ||||||||||||||
Interest Rate Swap | 33,000 | 3 month LIBOR | 2.992 | % | Oct. 2017-Oct. 2021 | (1,412 | ) | (858 | ) | (1,200 | ) | (729 | ) | ||||||||||||||
Interest Rate Swap | 34,000 | 3 month LIBOR | 3.118 | % | April 2018-July 2022 | (1,485 | ) | (902 | ) | (1,222 | ) | (743 | ) | ||||||||||||||
Interest Rate Swap | 34,000 | 3 month LIBOR | 3.158 | % | July 2018- Oct. 2022 | (1,452 | ) | (882 | ) | (1,198 | ) | (728 | ) | ||||||||||||||
$ | 200,000 | $ | (7,222 | ) | $ | (4,388 | ) | $ | (6,732 | ) | $ | (4,091 | ) |
(1) | No cash will be exchanged prior to the beginning of the term. |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||||
Forecasted Notional Amount | Receive Rate | Pay Rate | Term | Asset/ (Liabilities) | Unrealized Gain in Accumulated Other Comprehensive Income | Asset/ (Liabilities) | Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | ||||||||||||||||||||
Interest Rate Swap (1) | $ | 27,500 | 2.090 | % | 1 month LIBOR | July 2014 - July 2021 | $ | — | $ | — | $ | 395 | $ | 240 | |||||||||||||
Interest Rate Swap (1) | 25,000 | 2.270 | % | 1 month LIBOR | July 2014 - July 2022 | — | — | 610 | 371 | ||||||||||||||||||
Interest Rate Swap (1) | 27,500 | 2.420 | % | 1 month LIBOR | July 2014 - July 2023 | — | — | 874 | 531 | ||||||||||||||||||
Interest Rate Swap (1) | 30,000 | 2.500 | % | 1 month LIBOR | July 2014 - July 2024 | — | — | 900 | 547 | ||||||||||||||||||
Interest Rate Swap (1) | 15,000 | 1.470 | % | 1 month LIBOR | Aug. 2015-Aug. 2020 | — | — | (75 | ) | (46 | ) | ||||||||||||||||
$ | 125,000 | $ | — | $ | — | $ | 2,704 | $ | 1,643 |
(1) | Each of these swaps were terminated via cash settlement in the second quarter of 2017. As a result of terminating these contracts in the second quarter of 2017, Pinnacle Financial began recognizing a gain of $3.1 million over the original terms of these agreements. |
o | Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
o | Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
o | Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
June 30, 2017 | Total carrying value in the consolidated balance sheet | Quoted market prices in an active market (Level 1) | Models with significant observable market parameters (Level 2) | Models with significant unobservable market parameters (Level 3) | |||||||||||
Investment securities available-for-sale: | |||||||||||||||
U.S. treasury securities | $ | 251 | $ | — | $ | 251 | $ | — | |||||||
U.S. government agency securities | 61,900 | — | 61,900 | — | |||||||||||
Mortgage-backed securities | 1,539,050 | — | 1,539,050 | — | |||||||||||
State and municipal securities | 533,602 | — | 533,602 | — | |||||||||||
Agency-backed securities | 190,220 | — | 190,220 | — | |||||||||||
Corporate notes and other | 102,011 | 24,705 | 77,306 | — | |||||||||||
Total investment securities available-for-sale | $ | 2,427,034 | $ | 24,705 | $ | 2,402,329 | $ | — | |||||||
Other investments | 27,850 | — | — | 27,850 | |||||||||||
Other assets | 12,601 | — | 12,601 | — | |||||||||||
Total assets at fair value | $ | 2,467,485 | $ | 24,705 | $ | 2,414,930 | $ | 27,850 | |||||||
Other liabilities | $ | 16,190 | $ | — | $ | 16,190 | $ | — | |||||||
Total liabilities at fair value | $ | 16,190 | $ | — | $ | 16,190 | $ | — | |||||||
December 31, 2016 | Total carrying value in the consolidated balance sheet | Quoted market prices in an active market (Level 1) | Models with significant observable market parameters (Level 2) | Models with significant unobservable market parameters (Level 3) | |||||||||||
Investment securities available-for-sale: | |||||||||||||||
U.S. treasury securities | $ | 250 | $ | — | $ | 250 | $ | — | |||||||
U.S. government agency securities | 21,769 | — | 21,769 | — | |||||||||||
Mortgage-backed securities | 976,626 | — | 976,626 | — | |||||||||||
State and municipal securities | 212,720 | — | 212,720 | — | |||||||||||
Agency-backed securities | 78,580 | — | 78,580 | — | |||||||||||
Corporate notes and other | 8,601 | — | 8,601 | — | |||||||||||
Total investment securities available-for-sale | 1,298,546 | — | 1,298,546 | — | |||||||||||
Other investments | 10,478 | — | — | 10,478 | |||||||||||
Other assets | 13,340 | — | 13,340 | — | |||||||||||
Total assets at fair value | $ | 1,322,364 | $ | — | $ | 1,311,886 | $ | 10,478 | |||||||
Other liabilities | $ | 15,758 | $ | — | $ | 15,758 | $ | — | |||||||
Total liabilities at fair value | $ | 15,758 | $ | — | $ | 15,758 | $ | — |
June 30, 2017 | Total carrying value in the consolidated balance sheet | Quoted market prices in an active market (Level 1) | Models with significant observable market parameters (Level 2) | Models with significant unobservable market parameters (Level 3) | Total losses for the year-to-date period then ended | ||||||||||||||
Other real estate owned | $ | 24,806 | $ | — | $ | — | $ | 24,806 | $ | (66 | ) | ||||||||
Nonaccrual loans, net (1) | 38,811 | — | — | 38,811 | (3,410 | ) | |||||||||||||
Total | $ | 63,617 | $ | — | $ | — | $ | 63,617 | $ | (3,476 | ) | ||||||||
December 31, 2016 | |||||||||||||||||||
Other real estate owned | $ | 6,090 | $ | — | $ | — | $ | 6,090 | $ | (135 | ) | ||||||||
Nonaccrual loans, net (1) | 26,506 | — | — | 26,506 | (7,173 | ) | |||||||||||||
Total | $ | 32,596 | $ | — | $ | — | $ | 32,596 | $ | (7,308 | ) |
For the For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||
Other assets | Other liabilities | Other assets | Other liabilities | Other assets | Other liabilities | Other assets | Other liabilities | |||||||||||||||||||||||||
Fair value, beginning of period | $ | 10,492 | $ | — | $ | 10,128 | $ | — | $ | 10,478 | $ | — | $ | 9,764 | $ | — | ||||||||||||||||
Total realized gains included in income | 240 | — | 159 | — | 437 | — | 336 | — | ||||||||||||||||||||||||
Changes in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at June 30 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Acquired | 17,062 | — | — | — | 17,062 | — | — | — | ||||||||||||||||||||||||
Purchases | 649 | — | 246 | — | 769 | — | 571 | — | ||||||||||||||||||||||||
Issuances | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Settlements | (593 | ) | — | (152 | ) | — | (896 | ) | — | (290 | ) | — | ||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Fair value, end of period | $ | 27,850 | — | 10,381 | $ | — | $ | 27,850 | $ | — | $ | 10,381 | $ | — | ||||||||||||||||||
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at June 30 | $ | 240 | $ | — | $ | 159 | $ | — | $ | 437 | $ | — | $ | 336 | $ | — |
(in thousands) June 30, 2017 | Carrying/ Notional Amount | Estimated Fair Value (1) | Quoted market prices in an active market (Level 1) | Models with significant observable market parameters (Level 2) | Models with significant unobservable market parameters (Level 3) | ||||||||||||||
Financial assets: | |||||||||||||||||||
Securities held-to-maturity | $ | 21,163 | $ | 21,322 | $ | — | $ | 21,322 | $ | — | |||||||||
Loans, net | 14,696,820 | 14,429,187 | — | — | 14,429,187 | ||||||||||||||
Mortgage loans held-for-sale | 90,275 | 90,534 | — | 90,534 | — | ||||||||||||||
Loans held-for-sale | 11,368 | 11,546 | — | 11,546 | — | ||||||||||||||
Financial liabilities: | |||||||||||||||||||
Deposits and securities sold under | |||||||||||||||||||
agreements to repurchase | 15,962,483 | 15,483,609 | — | — | 15,483,609 | ||||||||||||||
Federal Home Loan Bank advances | 725,230 | 725,312 | — | — | 725,312 | ||||||||||||||
Subordinated debt and other borrowings | 465,419 | 445,683 | — | — | 445,683 | ||||||||||||||
Off-balance sheet instruments: | |||||||||||||||||||
Commitments to extend credit (2) | 5,021,242 | 2,290 | — | — | 2,290 | ||||||||||||||
Standby letters of credit (3) | 135,819 | 774 | — | — | 774 | ||||||||||||||
December 31, 2016 | Carrying/ Notional Amount | Estimated Fair Value (1) | Quoted market prices in an active market (Level 1) | Models with significant observable market parameters (Level 2) | Models with significant unobservable market parameters (Level 3) | ||||||||||||||
Financial assets: | |||||||||||||||||||
Securities held-to-maturity | $ | 25,251 | $ | 25,233 | $ | — | $ | 25,233 | $ | — | |||||||||
Loans, net | 8,390,944 | 8,178,982 | — | — | 8,178,982 | ||||||||||||||
Mortgage loans held for sale | 70,298 | 70,480 | — | 70,480 | — | ||||||||||||||
Financial liabilities: | |||||||||||||||||||
Deposits and securities sold under | |||||||||||||||||||
agreements to repurchase | 8,845,014 | 8,579,664 | — | — | 8,579,664 | ||||||||||||||
Federal Home Loan Bank advances | 406,304 | 406,491 | — | — | 406,491 | ||||||||||||||
Subordinated debt and other borrowings | 350,768 | 328,049 | — | — | 328,049 | ||||||||||||||
Off-balance sheet instruments: | |||||||||||||||||||
Commitments to extend credit (2) | 3,374,269 | 383 | — | — | 383 | ||||||||||||||
Standby letters of credit (3) | 131,418 | 740 | — | — | 740 |
(1) | Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. |
(2) | At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at June 30, 2017 and December 31, 2016, Pinnacle Financial included in other liabilities $2.3 million and $383,000, respectively, representing the inherent risks associated with these off-balance sheet commitments. |
(3) | At June 30, 2017 and December 31, 2016, the fair value of Pinnacle Financial's standby letters of credit was $774,000 and $740,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit and is included in the consolidated balance sheet of Pinnacle Financial and is believed to approximate fair value. This fair value will decrease over time as the existing standby letters of credit approach their expiration dates. |
Actual | Minimum Capital Requirement | Minimum To Be Well-Capitalized | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
At June 30, 2017 | ||||||||||||||||||||
Total capital to risk weighted assets: | ||||||||||||||||||||
Pinnacle Financial | $ | 2,180,808 | 12.6 | % | $ | 1,382,821 | 8.0 | % | NA | NA | ||||||||||
Pinnacle Bank | $ | 2,081,349 | 12.1 | % | $ | 1,378,433 | 8.0 | % | $ | 1,723,041 | 10.0 | % | ||||||||
Tier 1 capital to risk weighted assets: | ||||||||||||||||||||
Pinnacle Financial | $ | 1,645,173 | 9.5 | % | $ | 1,037,116 | 6.0 | % | NA | NA | ||||||||||
Pinnacle Bank | $ | 1,888,732 | 11.0 | % | $ | 1,033,825 | 6.0 | % | $ | 1,378,433 | 8.0 | % | ||||||||
Common equity Tier 1 capital to risk weighted assets | ||||||||||||||||||||
Pinnacle Financial | $ | 1,645,051 | 9.5 | % | $ | 777,837 | 4.5 | % | NA | NA | ||||||||||
Pinnacle Bank | $ | 1,888,610 | 11.0 | % | $ | 775,368 | 4.5 | % | $ | 1,119,977 | 6.5 | % | ||||||||
Tier 1 capital to average assets (*): | ||||||||||||||||||||
Pinnacle Financial | $ | 1,645,173 | 14.5 | % | $ | 454,114 | 4.0 | % | NA | NA | ||||||||||
Pinnacle Bank | $ | 1,888,732 | 16.7 | % | $ | 453,095 | 4.0 | % | $ | 566,368 | 5.0 | % |
Name | Date Established | Maturity | Total Debt Outstanding | Interest Rate at June 30, 2017 | Coupon Structure | ||||||||
Trust preferred securities | |||||||||||||
Pinnacle Statutory Trust I | December 29, 2003 | December 30, 2033 | $ | 10,310 | 3.95 | % | 30-day LIBOR + 2.80% | ||||||
Pinnacle Statutory Trust II | September 15, 2005 | September 30, 2035 | 20,619 | 2.70 | % | 30-day LIBOR + 1.40% | |||||||
Pinnacle Statutory Trust III | September 7, 2006 | September 30, 2036 | 20,619 | 2.95 | % | 30-day LIBOR + 1.65% | |||||||
Pinnacle Statutory Trust IV | October 31, 2007 | September 30, 2037 | 30,928 | 4.10 | % | 30-day LIBOR + 2.85% | |||||||
BNC Capital Trust I | April 3, 2003 | April 15, 2033 | 5,155 | 4.41 | % | 30-day LIBOR + 3.25% | |||||||
BNC Capital Trust II | March 11, 2004 | April 7, 2034 | 6,186 | 4.01 | % | 30-day LIBOR + 2.85% | |||||||
BNC Capital Trust III | September 23, 2004 | September 23, 2034 | 5,155 | 3.56 | % | 30-day LIBOR + 2.40% | |||||||
BNC Capital Trust IV | September 27, 2006 | December 31, 2036 | 7,217 | 3.00 | % | 30-day LIBOR + 1.70% | |||||||
Valley Financial Trust I | August 5, 2005 | September 30, 2035 | 4,124 | 4.25 | % | 30-day LIBOR + 3.10% | |||||||
Valley Financial Trust II | June 6, 2003 | June 26, 2033 | 7,217 | 2.62 | % | 30-day LIBOR + 1.49% | |||||||
Valley Financial Trust III | September 26, 2005 | December 15, 2035 | 5,155 | 2.90 | % | 30-day LIBOR + 1.73% | |||||||
Southcoast Capital Trust III | December 15, 2006 | January 30, 2037 | 10,310 | 2.80 | % | 30-day LIBOR + 1.50% | |||||||
Subordinated Debt | |||||||||||||
Pinnacle Bank Subordinated Notes | July 30, 2015 | July 30, 2025 | 60,000 | 4.88 | % | Fixed (1) | |||||||
Pinnacle Bank Subordinated Notes | March 10, 2016 | July 30, 2025 | 70,000 | 4.88 | % | Fixed (1) | |||||||
Avenue Subordinated Notes | December 29, 2014 | December 29, 2024 | 20,000 | 6.75 | % | Fixed (2) | |||||||
Pinnacle Financial Subordinated Notes | November 16, 2016 | November 16, 2026 | 120,000 | 5.25 | % | Fixed (3) | |||||||
BNC Subordinated Notes | September 25, 2014 | October 1, 2024 | 60,000 | 5.50 | % | Fixed | |||||||
BNC Subordinated Notes | October 15, 2013 | October 15, 2023 | 10,560 | 6.04 | % | 30-day LIBOR + 5.00% (4) | |||||||
Other Borrowings | |||||||||||||
Revolving credit facility (5) | March 29, 2016 | March 27, 2018 | — | — | |||||||||
Debt issuance costs and fair value adjustments | (8,136 | ) | |||||||||||
Total subordinated debt and other borrowings | $ | 465,419 |
Three months ended June 30, | 2017 - 2016 Percent | Six months ended June 30, | 2017 - 2016 Percent | ||||||||||||||||||
2017 | 2016 | Increase (Decrease) | 2017 | 2016 | Increase (Decrease) | ||||||||||||||||
Interest income | $ | 123,743 | $ | 83,762 | 47.7 | % | $ | 225,886 | $ | 164,736 | 37.1 | % | |||||||||
Interest expense | 17,116 | 8,718 | 96.3 | % | 30,492 | 15,790 | 93.1 | % | |||||||||||||
Net interest income | 106,627 | 75,044 | 42.1 | % | 195,394 | 148,946 | 31.2 | % | |||||||||||||
Provision for loan losses | 6,812 | 5,280 | 29.0 | % | 10,463 | 9,174 | 14.1 | % | |||||||||||||
Net interest income after provision for loan losses | 99,815 | 69,764 | 43.1 | % | 184,931 | 139,772 | 32.3 | % | |||||||||||||
Noninterest income | 35,057 | 32,713 | 7.2 | % | 65,438 | 58,569 | 11.7 | % | |||||||||||||
Noninterest expense | 71,798 | 55,931 | 28.4 | % | 133,851 | 109,994 | 21.7 | % | |||||||||||||
Net income before income taxes | 63,074 | 46,546 | 35.5 | % | 116,518 | 88,347 | 31.9 | % | |||||||||||||
Income tax expense | 19,988 | 15,759 | 26.8 | % | 33,779 | 29,594 | 14.1 | % | |||||||||||||
Net income | $ | 43,086 | $ | 30,787 | 39.9 | % | $ | 82,739 | $ | 58,753 | 40.8 | % | |||||||||
Basic net income per common share | $ | 0.81 | $ | 0.75 | 8.0 | % | $ | 1.64 | $ | 1.44 | 13.9 | % | |||||||||
Diluted net income per common share | $ | 0.80 | $ | 0.73 | 9.6 | % | $ | 1.62 | $ | 1.42 | 14.1 | % |
Three months ended June 30, 2017 | Three months ended June 30, 2016 | |||||||||||||||
Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | |||||||||||
Interest-earning assets: | ||||||||||||||||
Loans (1) | $ | 9,817,139 | $ | 112,320 | 4.66 | % | $ | 6,997,592 | $ | 77,043 | 4.53 | % | ||||
Securities: | ||||||||||||||||
Taxable | 1,487,806 | 8,265 | 2.23 | % | 880,976 | 4,572 | 2.09 | % | ||||||||
Tax-exempt (2) | 310,528 | 2,236 | 3.87 | % | 183,084 | 1,443 | 4.25 | % | ||||||||
Federal funds sold and other | 269,645 | 922 | 1.37 | % | 301,005 | 704 | 0.94 | % | ||||||||
Total interest-earning assets | 11,885,118 | $ | 123,743 | 4.21 | % | 8,362,657 | $ | 83,762 | 4.06 | % | ||||||
Nonearning assets | ||||||||||||||||
Intangible assets | 784,603 | 440,504 | ||||||||||||||
Other nonearning assets | 665,638 | 502,780 | ||||||||||||||
Total assets | $ | 13,335,359 | $ | 9,305,941 | ||||||||||||
Interest-bearing liabilities: | ||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||
Interest checking | $ | 2,035,607 | $ | 2,527 | 0.50 | % | $ | 1,352,898 | $ | 904 | 0.27 | % | ||||
Savings and money market | 4,470,577 | 5,997 | 0.54 | % | 3,085,734 | 3,019 | 0.39 | % | ||||||||
Time | 1,141,584 | 2,470 | 0.87 | % | 651,194 | 1,151 | 0.71 | % | ||||||||
Total interest-bearing deposits | 7,647,768 | 10,994 | 0.58 | % | 5,089,826 | 5,074 | 0.40 | % | ||||||||
Securities sold under agreements to repurchase | 99,763 | 78 | 0.32 | % | 65,121 | 40 | 0.24 | % | ||||||||
Federal Home Loan Bank advances | 399,083 | 1,485 | 1.49 | % | 653,750 | 1,256 | 0.77 | % | ||||||||
Subordinated debt and other borrowings | 375,249 | 4,559 | 4.87 | % | 225,240 | 2,348 | 4.19 | % | ||||||||
Total interest-bearing liabilities | 8,521,863 | 17,116 | 0.81 | % | 6,033,937 | 8,718 | 0.58 | % | ||||||||
Noninterest-bearing deposits | 2,746,499 | — | — | 2,003,523 | — | — | ||||||||||
Total deposits and interest-bearing liabilities | 11,268,362 | $ | 17,116 | 0.61 | % | 8,037,460 | $ | 8,718 | 0.44 | % | ||||||
Other liabilities | 9,492 | 20,719 | ||||||||||||||
Stockholders' equity | 2,057,505 | 1,247,762 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 13,335,359 | $ | 9,305,941 | ||||||||||||
Net interest income | $ | 106,627 | $ | 75,044 | ||||||||||||
Net interest spread (3) | 3.40 | % | 3.48 | % | ||||||||||||
Net interest margin (4) | 3.68 | % | 3.72 | % |
Six months ended June 30, 2017 | Six months ended June 30, 2016 | |||||||||||||||
Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | |||||||||||
Interest-earning assets: | ||||||||||||||||
Loans (1) | $ | 9,191,181 | $ | 205,538 | 4.58 | % | $ | 6,869,823 | $ | 151,447 | 4.51 | % | ||||
Securities: | ||||||||||||||||
Taxable | 1,346,093 | 14,698 | 2.20 | % | 845,945 | 9,039 | 2.15 | % | ||||||||
Tax-exempt (2) | 274,519 | 3,913 | 3.85 | % | 182,923 | 2,937 | 4.33 | % | ||||||||
Federal funds sold and other | 266,533 | 1,737 | 1.31 | % | 291,782 | 1,313 | 0.91 | % | ||||||||
Total interest-earning assets | 11,078,326 | $ | 225,886 | 4.14 | % | 8,190,473 | $ | 164,736 | 4.08 | % | ||||||
Nonearning assets | ||||||||||||||||
Intangible assets | 676,015 | 440,485 | ||||||||||||||
Other nonearning assets | 629,450 | 447,996 | ||||||||||||||
Total assets | $ | 12,383,791 | $ | 9,078,954 | ||||||||||||
Interest-bearing liabilities: | ||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||
Interest checking | $ | 1,977,291 | $ | 4,406 | 0.45 | % | $ | 1,378,931 | $ | 1,835 | 0.27 | % | ||||
Savings and money market | 4,187,024 | 10,450 | 0.50 | % | 3,041,660 | 5,972 | 0.39 | % | ||||||||
Time | 994,583 | 4,257 | 0.86 | % | 662,788 | 2,182 | 0.66 | % | ||||||||
Total interest-bearing deposits | 7,158,898 | 19,113 | 0.54 | % | 5,083,379 | 9,989 | 0.40 | % | ||||||||
Securities sold under agreements to repurchase | 89,777 | 128 | 0.29 | % | 67,125 | 88 | 0.26 | % | ||||||||
Federal Home Loan Bank advances | 306,531 | 2,389 | 1.57 | % | 518,440 | 1,792 | 0.70 | % | ||||||||
Subordinated debt and other borrowings | 371,222 | 8,862 | 4.81 | % | 193,904 | 3,921 | 4.07 | % | ||||||||
Total interest-bearing liabilities | 7,926,428 | 30,492 | 0.78 | % | 5,862,848 | 15,790 | 0.54 | % | ||||||||
Noninterest-bearing deposits | 2,591,548 | — | — | 1,981,803 | — | — | ||||||||||
Total deposits and interest-bearing liabilities | 10,517,976 | $ | 30,492 | 0.58 | % | 7,844,651 | $ | 15,790 | 0.40 | % | ||||||
Other liabilities | 7,419 | 16,346 | ||||||||||||||
Stockholders' equity | 1,858,396 | 1,217,957 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 12,383,791 | $ | 9,078,954 | ||||||||||||
Net interest income | $ | 195,394 | $ | 148,946 | ||||||||||||
Net interest spread (3) | 3.37 | % | 3.53 | % | ||||||||||||
Net interest margin (4) | 3.64 | % | 3.75 | % |
Three months ended June 30, | 2017 - 2016 Percent | Six months ended June 30, | 2017 - 2016 Percent | ||||||||||||||||
2017 | 2016 | Increase (Decrease) | 2017 | 2016 | Increase (Decrease) | ||||||||||||||
Noninterest income: | |||||||||||||||||||
Service charges on deposit accounts | $ | 4,179 | $ | 3,430 | 21.8% | $ | 8,034 | $ | 6,873 | 16.9% | |||||||||
Investment services | 3,110 | 2,500 | 24.4% | 5,932 | 4,845 | 22.4% | |||||||||||||
Insurance sales commissions | 1,461 | 1,193 | 22.5% | 3,320 | 2,899 | 14.5% | |||||||||||||
Gains on mortgage loans sold, net | 4,668 | 4,221 | 10.6% | 8,822 | 7,789 | 13.3% | |||||||||||||
Gain on sale of investment securities, net | — | — | NA | — | — | NA | |||||||||||||
Income from equity method investment | 8,755 | 9,644 | (9.2)% | 16,578 | 14,792 | 12.1% | |||||||||||||
Trust fees | 1,677 | 1,492 | 12.4% | 3,382 | 3,073 | 10.1% | |||||||||||||
Other noninterest income: | |||||||||||||||||||
Interchange and other consumer fees | 7,558 | 5,768 | 31.0% | 13,709 | 11,587 | 18.3% | |||||||||||||
Bank-owned life insurance | 1,395 | 878 | 58.9% | 2,494 | 1,641 | 52.0% | |||||||||||||
Loan swap fees | 336 | 1,780 | (81.1)% | 597 | 2,511 | (76.2)% | |||||||||||||
Other noninterest income | 1,918 | 1,807 | 6.1% | 2,570 | 2,559 | 0.4% | |||||||||||||
Total other noninterest income | 11,207 | 10,233 | 9.5% | 19,370 | 18,298 | 5.9% | |||||||||||||
Total noninterest income | $ | 35,057 | $ | 32,713 | 7.2% | $ | 65,438 | $ | 58,569 | 11.7% |
• | Approximately $29.3 million and $56.6 million, respectively, of BHG's revenues for the three and six months ended June 30, 2017 related to gains on the sale of commercial loans BHG had previously issued to doctor, dentist and other medical practices compared to $25.4 million and $49.7 million, respectively, for the three and six months ended June 30, 2016. BHG refers to this activity as its core product. BHG typically funds these loans from cash reserves on its balance sheet. Subsequent to origination, these core product loans are sold by BHG with limited or no recourse to a network of community banks and other financial institutions at a premium to the par value of the loan. The purchaser may access a BHG cash reserve account of up to 3% of the loan balance to support loan payments. BHG retains no servicing or other responsibilities related to the core product loan once sold. As a result, this gain on sale premium represents BHG's compensation for absorbing the costs to originate the loan as well as marketing expenses associated with maintaining its business model. At June 30, 2017, there were $1.4 billion in core product loans previously sold by BHG that were being actively serviced by BHG's bank network of purchasers. |
• | BHG will maintain loans on its balance sheet for a period of time prior to sale or transfer to a purchaser. BHG also has an investment portfolio on which it earns interest and dividend income. Net interest income and fees associated with this activity amounted to $4.8 million and $9.0 million, respectively, for the three and six months ended June 30, 2017, as compared to $4.0 million and $7.0 million, respectively, for same periods in the prior year. |
• | Additionally, BHG will also refer loans to other financial institutions and, based on an agreement with the institution, earn a fee for doing so. Typically, these are loans that BHG believes would either be classified as consumer-type loans rather than commercial loans, the loans fail to meet the credit underwriting standards of BHG but another institution will accept the loans or these are loans to borrowers in certain geographic locations where BHG has elected not to do business. For the three and six months ended June 30, 2017, BHG recognized fee income of $1.8 million and $3.8 million, respectively, as compared to $3.7 million and $5.0 million, respectively, for the same periods in the prior year related to these activities. |
Three months ended June 30, | 2017 - 2016 Percent | Six months ended June 30, | 2017 - 2016 Percent | ||||||||||||||||
2017 | 2016 | Increase (Decrease) | 2017 | 2016 | Increase (Decrease) | ||||||||||||||
Noninterest expense: | |||||||||||||||||||
Salaries and employee benefits: | |||||||||||||||||||
Salaries | $ | 26,312 | $ | 19,393 | 35.7% | $ | 49,727 | $ | 38,598 | 28.8% | |||||||||
Commissions | 1,838 | 1,487 | 23.6% | 3,470 | 2,919 | 18.9% | |||||||||||||
Cash and equity incentives | 9,064 | 7,916 | 14.5% | 14,986 | 13,764 | 8.9% | |||||||||||||
Employee benefits and other | 6,460 | 5,458 | 18.4% | 13,845 | 11,490 | 20.5% | |||||||||||||
Total salaries and employee benefits | 43,674 | 34,254 | 27.5% | 82,028 | 66,771 | 22.8% | |||||||||||||
Equipment and occupancy | 10,713 | 8,312 | 28.9% | 20,387 | 16,442 | 24.0% | |||||||||||||
Other real estate expense | 63 | 222 | (71.6%) | 315 | 335 | (6.0%) | |||||||||||||
Marketing and business development | 2,127 | 1,538 | 38.3% | 4,006 | 2,801 | 43.0% | |||||||||||||
Postage and supplies | 1,122 | 1,050 | 6.9% | 2,319 | 2,007 | 15.5% | |||||||||||||
Amortization of intangibles | 1,472 | 847 | 73.8% | 2,668 | 1,720 | 55.1% | |||||||||||||
Merger related expense | 3,221 | 980 | 228.7% | 3,893 | 2,810 | 38.5% | |||||||||||||
Other noninterest expense | 9,406 | 8,728 | 7.8% | 18,235 | 17,108 | 6.6% | |||||||||||||
Total noninterest expense | $ | 71,798 | $ | 55,931 | 28.4% | $ | 133,851 | $ | 109,994 | 21.7% |
Year Acquired | Initial Valuation (in millions) | Amortizable Life (in years) | ||||||
Core Deposit Intangible: | ||||||||
Mid- America | 2007 | $ | 9.5 | 10 | ||||
CapitalMark | 2015 | 6.2 | 7 | |||||
Magna | 2015 | 3.2 | 6 | |||||
Avenue | 2016 | 8.8 | 9 | |||||
BNC | 2017 | 48.1 | 11 | |||||
Book of Business Intangibles: | ||||||||
Miller Loughry Beach | 2008 | 1.3 | 20 | |||||
CapitalMark | 2015 | 0.3 | 16 | |||||
BNC | 2017 | 0.4 | 20 |
June 30, 2017 | December 31, 2016 | ||||||||||||
Amount | Percent | Amount | Percent | ||||||||||
Commercial real estate – mortgage | $ | 6,387,372 | 43.3 | % | $ | 3,193,496 | 37.8 | % | |||||
Consumer real estate – mortgage | 2,552,927 | 17.3 | % | 1,185,917 | 14.0 | % | |||||||
Construction and land development | 1,772,799 | 12.0 | % | 912,673 | 10.8 | % | |||||||
Commercial and industrial | 3,688,357 | 25.0 | % | 2,891,710 | 34.2 | % | |||||||
Consumer and other | 357,310 | 2.4 | % | 266,129 | 3.2 | % | |||||||
Total loans | $ | 14,758,765 | 100.0 | % | $ | 8,449,925 | 100.0 | % |
Amounts at June 30, 2017 | Percentage | ||||||||||||
Fixed Rates | Variable Rates | Totals | At June 30, 2017 | ||||||||||
Based on contractual maturity: | |||||||||||||
Due within one year | $ | 749,652 | $ | 1,914,293 | $ | 2,663,945 | 18.0% | ||||||
Due in one year to five years | 3,858,677 | 3,104,846 | 6,963,523 | 47.2% | |||||||||
Due after five years | 2,239,047 | 2,892,250 | 5,131,297 | 34.8% | |||||||||
Totals | $ | 6,847,376 | $ | 7,911,389 | $ | 14,758,765 | 100.0% | ||||||
Based on contractual repricing dates: | |||||||||||||
Daily floating rate (*) | $ | — | $ | 2,058,220 | $ | 2,058,220 | 14.0% | ||||||
Due within one year | 856,462 | 5,339,407 | 6,195,869 | 42.0% | |||||||||
Due in one year to five years | 3,822,842 | 446,711 | 4,269,553 | 28.9% | |||||||||
Due after five years | 2,168,072 | 67,051 | 2,235,123 | 15.1% | |||||||||
Totals | $ | 6,847,376 | $ | 7,911,389 | $ | 14,758,765 | 100.0% |
June 30, | December 31, | ||||||
Accruing loans past due 30 to 89 days: | 2017 | 2016 | |||||
Commercial real estate – mortgage | $ | 5,692 | $ | 3,505 | |||
Consumer real estate – mortgage | 7,689 | 3,838 | |||||
Construction and land development | 6,250 | 2,210 | |||||
Commercial and industrial | 2,880 | 4,475 | |||||
Consumer and other | 4,692 | 7,168 | |||||
Total accruing loans past due 30 to 89 days | $ | 27,203 | $ | 21,196 | |||
Accruing loans past due 90 days or more: | |||||||
Commercial real estate – mortgage | $ | — | $ | — | |||
Consumer real estate – mortgage | — | 53 | |||||
Construction and land development | — | — | |||||
Commercial and industrial | 1,072 | — | |||||
Consumer and other | 619 | 1,081 | |||||
Total accruing loans past due 90 days or more | $ | 1,691 | $ | 1,134 | |||
Ratios: | |||||||
Accruing loans past due 30 to 89 days as a percentage of total loans | 0.19 | % | 0.25 | % | |||
Accruing loans past due 90 days or more as a percentage of total loans | 0.01 | % | 0.01 | % | |||
Total accruing loans in past due status as a percentage of total loans | 0.20 | % | 0.26 | % |
Accretable Yield | Nonaccretable Yield | Total | |||||||||
December 31, 2016 | $ | 30,364 | $ | 3,633 | $ | 33,997 | |||||
Acquisitions | 149,220 | 26,253 | 175,473 | ||||||||
Year-to-date settlements | (11,287 | ) | (1,096 | ) | (12,383 | ) | |||||
June 30, 2017 | $ | 168,298 | $ | 28,790 | $ | 197,087 |
June 30, 2017 | December 31, 2016 | ||||||||||||
Amount | Percent | Amount | Percent | ||||||||||
Commercial real estate - mortgage | $ | 16,002 | 43.3 | % | $ | 13,655 | 37.8 | % | |||||
Consumer real estate - mortgage | 7,835 | 17.3 | % | 6,564 | 14.0 | % | |||||||
Construction and land development | 5,126 | 12.0 | % | 3,624 | 10.8 | % | |||||||
Commercial and industrial | 24,235 | 25.0 | % | 24,743 | 34.2 | % | |||||||
Consumer and other | 7,549 | 2.4 | % | 9,520 | 3.2 | % | |||||||
Unallocated | 1,197 | NA | 874 | NA | |||||||||
Total allowance for loan losses | $ | 61,944 | 100.0 | % | $ | 58,980 | 100.0 | % |
Six months ended June 30, 2017 | Year ended December 31, 2016 | ||||||
Balance at beginning of period | $ | 58,980 | $ | 65,432 | |||
Provision for loan losses | 10,463 | 18,328 | |||||
Charged-off loans: | |||||||
Commercial real estate – mortgage | (9 | ) | (276 | ) | |||
Consumer real estate – mortgage | (268 | ) | (788 | ) | |||
Construction and land development | — | (231 | ) | ||||
Commercial and industrial | (1,653 | ) | (5,801 | ) | |||
Consumer and other loans | (8,391 | ) | (24,016 | ) | |||
Total charged-off loans | (10,321 | ) | (31,112 | ) | |||
Recoveries of previously charged-off loans: | |||||||
Commercial real estate – mortgage | 15 | 208 | |||||
Consumer real estate – mortgage | 582 | 546 | |||||
Construction and land development | 129 | 545 | |||||
Commercial and industrial | 702 | 2,138 | |||||
Consumer and other loans | 1,394 | 2,895 | |||||
Total recoveries of previously charged-off loans | 2,822 | 6,332 | |||||
Net charge-offs | (7,499 | ) | (24,780 | ) | |||
Balance at end of period | $ | 61,944 | $ | 58,980 | |||
Ratio of allowance for loan losses to total loans outstanding at end of period | 0.42 | % | 0.70 | % | |||
Ratio of net charge-offs to average total loans outstanding for the period (1) | 0.17 | % | 0.33 | % |
June 30, 2017 | December 31, 2016 | ||
Weighted average life | 5.89 years | 5.26 years | |
Effective duration | 3.34% | 3.16% | |
Tax equivalent yield | 2.51% | 2.42% |
June 30, 2017 | Percent | December 31, 2016 | Percent | ||||||||
Core funding: | |||||||||||
Noninterest-bearing deposit accounts | $ | 3,893,603 | 22.7% | $ | 2,399,191 | 25.0% | |||||
Interest-bearing demand accounts | 2,480,791 | 14.5% | 1,737,996 | 18.1% | |||||||
Savings and money market accounts | 5,604,737 | 32.7% | 3,185,186 | 33.2% | |||||||
Time deposit accounts less than $250,000 | 1,263,030 | 7.4% | 512,599 | 5.3% | |||||||
Total core funding | 13,242,161 | 77.2% | 7,834,972 | 81.6% | |||||||
Non-core funding: | |||||||||||
Relationship based non-core funding: | |||||||||||
Reciprocating NOW deposits (1) | 50,451 | 0.3% | 30,328 | 0.3% | |||||||
Reciprocating money market accounts (1) | 767,994 | 4.5% | 519,769 | 5.4% | |||||||
Reciprocating time deposits | 113,161 | 0.7% | 58,838 | 0.6% | |||||||
Other time deposits | 382,698 | 2.2% | 198,689 | 2.1% | |||||||
Securities sold under agreements to repurchase | 205,008 | 1.2% | 85,707 | 0.9% | |||||||
Total relationship based non-core funding | 1,519,312 | 8.9% | 893,331 | 9.3% | |||||||
Wholesale funding: | |||||||||||
Brokered deposits | 518,579 | 3.0% | 49,983 | 0.5% | |||||||
Brokered time deposits | 682,431 | 4.0% | 66,727 | 0.7% | |||||||
Federal Home Loan Bank advances | 725,230 | 4.2% | 406,304 | 4.2% | |||||||
Pinnacle Financial line of credit | — | —% | — | —% | |||||||
Subordinated debt- Pinnacle Bank | 127,608 | 0.7% | 127,486 | 1.3% | |||||||
Subordinated debt- Pinnacle Financial | 337,811 | 2.0% | 223,282 | 2.3% | |||||||
Total wholesale funding | 2,391,659 | 13.9% | 873,782 | 9.1% | |||||||
Total non-core funding | 3,910,971 | 22.8% | 1,767,113 | 18.4% | |||||||
Totals | $ | 17,153,132 | 100.0% | $ | 9,602,085 | 100.0% |
(1) | The reciprocating categories consists of deposits we receive from a bank network (the CDARS network) in connection with deposits of our customers in excess of our FDIC coverage limit that we place with the CDARS network. |
Balances | Weighted Avg. Rate | |||||
Denominations less than $250,000 | ||||||
Three months or less | $ | 592,316 | 0.77 | % | ||
Over three but less than six months | 822,283 | 0.81 | % | |||
Over six but less than twelve months | 157,633 | 0.93 | % | |||
Over twelve months | 425,076 | 1.29 | % | |||
$ | 1,997,308 | 0.91 | % | |||
Denominations $250,000 and greater | ||||||
Three months or less | $ | 84,318 | 0.76 | % | ||
Over three but less than six months | 154,676 | 0.70 | % | |||
Over six but less than twelve months | 114,570 | 1.03 | % | |||
Over twelve months | 90,448 | 1.33 | % | |||
$ | 444,012 | 0.93 | % | |||
Totals | $ | 2,441,320 | 0.91 | % |
Name | Date Established | Maturity | Total Debt Outstanding | Interest Rate at June 30, 2017 | Coupon Structure | ||||||||
Trust preferred securities | |||||||||||||
Pinnacle Statutory Trust I | December 29, 2003 | December 30, 2033 | $ | 10,310 | 3.95 | % | 30-day LIBOR + 2.80% | ||||||
Pinnacle Statutory Trust II | September 15, 2005 | September 30, 2035 | 20,619 | 2.70 | % | 30-day LIBOR + 1.40% | |||||||
Pinnacle Statutory Trust III | September 7, 2006 | September 30, 2036 | 20,619 | 2.95 | % | 30-day LIBOR + 1.65% | |||||||
Pinnacle Statutory Trust IV | October 31, 2007 | September 30, 2037 | 30,928 | 4.10 | % | 30-day LIBOR + 2.85% | |||||||
BNC Capital Trust I | April 3, 2003 | April 15, 2033 | 5,155 | 4.41 | % | 30-day LIBOR + 3.25% | |||||||
BNC Capital Trust II | March 11, 2004 | April 7, 2034 | 6,186 | 4.01 | % | 30-day LIBOR + 2.85% | |||||||
BNC Capital Trust III | September 23, 2004 | September 23, 2034 | 5,155 | 3.56 | % | 30-day LIBOR + 2.40% | |||||||
BNC Capital Trust IV | September 27, 2006 | December 31, 2036 | 7,217 | 3.00 | % | 30-day LIBOR + 1.70% | |||||||
Valley Financial Trust I | August 5, 2005 | September 30, 2035 | 4,124 | 4.25 | % | 30-day LIBOR + 3.10% | |||||||
Valley Financial Trust II | June 6, 2003 | June 26, 2033 | 7,217 | 2.62 | % | 30-day LIBOR + 1.49% | |||||||
Valley Financial Trust III | September 26, 2005 | December 15, 2035 | 5,155 | 2.90 | % | 30-day LIBOR + 1.73% | |||||||
Southcoast Capital Trust III | December 15, 2006 | January 30, 2037 | 10,310 | 2.80 | % | 30-day LIBOR + 1.50% | |||||||
Subordinated Debt | |||||||||||||
Pinnacle Bank Subordinated Notes | July 30, 2015 | July 30, 2025 | 60,000 | 4.88 | % | Fixed (1) | |||||||
Pinnacle Bank Subordinated Notes | March 10, 2016 | July 30, 2025 | 70,000 | 4.88 | % | Fixed (1) | |||||||
Avenue Subordinated Notes | December 29, 2014 | December 29, 2024 | 20,000 | 6.75 | % | Fixed (2) | |||||||
Pinnacle Financial Subordinated Notes | November 16, 2016 | November 16, 2026 | 120,000 | 5.25 | % | Fixed (3) | |||||||
BNC Subordinated Notes | September 25, 2014 | October 1, 2024 | 60,000 | 5.50 | % | Fixed | |||||||
BNC Subordinated Notes | October 15, 2013 | October 15, 2023 | 10,560 | 6.04 | % | 30-day LIBOR + 5.00% (4) | |||||||
Other Borrowings | |||||||||||||
Revolving credit facility (5) | March 29, 2016 | March 27, 2018 | — | — | |||||||||
Debt issuance costs and fair value adjustments | (8,136 | ) | |||||||||||
Total subordinated debt and other borrowings | $ | 465,419 |
Scheduled Maturities | Amount | Interest Rates (1) | |||
2017 | $ | 459,000 | 1.21% | ||
2018 | 180,002 | 1.31% | |||
2019 | 86,000 | 1.57% | |||
2020 | 154 | 2.25% | |||
2021 | — | —% | |||
Thereafter | 22 | 2.75% | |||
Total | $ | 725,178 | |||
Weighted average interest rate | 1.27% |
maintain loan quality in the context of significant loan growth; |
identify and expand into suitable markets; |
obtain regulatory and other approvals; |
identify and acquire suitable sites for new banking offices; |
attract sufficient deposits and capital to fund anticipated loan growth; |
maintain adequate common equity and regulatory capital; |
avoid diversion or disruption of our existing operations or management as well as those of the acquired institution; |
maintain adequate management personnel and systems to oversee such growth; |
maintain adequate internal audit, loan review and compliance functions; and |
implement additional policies, procedures and operating systems required to support such growth. |
the loss of key employees; |
the disruption of operations and business; |
inability to maintain and increase competitive presence; |
loan and deposit attrition, customer loss and revenue loss, including as a result of any decision we may make to close one or more locations; |
possible inconsistencies in standards, control procedures and policies; |
unexpected problems with costs, operations, personnel, technology and credit; and/or |
problems with the assimilation of new operations, sites or personnel, which could divert resources from regular banking operations. |
the time and costs associated with identifying and evaluating potential acquisition and merger targets; |
inaccuracies in the estimates and judgments used to evaluate credit, operations, management and market risks with respect to the target institution; |
the time and costs of evaluating new markets, hiring experienced local management, including as a result of de novo expansion into a market, and opening new bank locations, and the time lags between these activities and the generation of sufficient assets and deposits to support the significant costs of the expansion that we may incur, particularly in the first 12 to 24 months of operations; |
our ability to finance an acquisition and possible dilution to our existing shareholders; |
the diversion of our management’s attention to the negotiation of a transaction; |
the incurrence of an impairment of goodwill associated with an acquisition and adverse effects on our results of operations; |
entry into new markets where we have limited or no direct prior experience; |
closing delays and increased expenses related to the resolution of lawsuits filed by our shareholders or shareholders of companies we may seek to acquire; |
the inability to receive regulatory approvals timely or at all, including as a result of community objections, or such approvals being restrictively conditional; and |
risks associated with integrating the operations and personnel of the acquired business. |
a provision requiring our board of directors to take into account specific factors when considering an acquisition proposal; |
a provision that all extraordinary corporate transactions to which we are a party must be approved by a majority of the directors and a majority of the shares entitled to vote; |
a provision that any special meeting of our shareholders may be called only by our president, our board of directors, or the holders of 25% of the outstanding shares of our voting stock; and |
a provision establishing certain advance notice procedures for nomination of candidates for election as directors at an annual or special meeting of shareholders at which directors are elected. |
Period | Total Number of Shares Repurchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs | |||||||||
April 1, 2017 to April 30, 2017 | 1,143 | $ | 63.87 | — | — | ||||||||
May 1, 2017 to May 31, 2017 | 3,166 | 61.04 | — | — | |||||||||
June 1, 2017 to June 30, 2017 | 817 | 61.96 | — | — | |||||||||
Total | 5,126 | $ | 61.83 | — | — |
(1) | During the quarter ended June 30, 2017, 16,690 shares of restricted stock previously awarded to certain of our associates vested. We withheld 5,126 shares to satisfy tax withholding requirements associated with the vesting of these restricted shares. |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Schema Document | |
101.CAL | XBRL Calculation Linkbase Document | |
101.LAB | XBRL Label Linkbase Document | |
101.PRE | XBRL Presentation Linkbase Document | |
101.DEF | XBRL Definition Linkbase Document | |
* | The Company has omitted schedules and similar attachments to the subject agreement pursuant to Item 601(b)(2) of Regulation S-K. The Company will furnish a copy of any omitted schedule or similar attachment to the United States Securities and Exchange Commission upon request. | |
** | Management compensatory plan or arrangement |
PINNACLE FINANCIAL PARTNERS, INC. | ||
August 4, 2017 | /s/ M. Terry Turner | |
M. Terry Turner | ||
President and Chief Executive Officer | ||
August 4, 2017 | /s/ Harold R. Carpenter | |
Harold R. Carpenter | ||
Chief Financial Officer |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
August 4, 2017 | Signature: | /s/ M. Terry Turner |
M. Terry Turner | ||
President and Chief Executive Officer | ||
Pinnacle Financial Partners, Inc. |
1. | I have reviewed this quarterly report on Form 10-Q of Pinnacle Financial Partners, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
August 4, 2017 | Signature: | /s/ Harold R. Carpenter |
Harold R. Carpenter | ||
Chief Financial Officer | ||
Pinnacle Financial Partners, Inc. |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
August 4, 2017 | /s/ M. Terry Turner | |
M. Terry Turner | ||
President and Chief Executive Officer | ||
Pinnacle Financial Partners, Inc. |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
August 4, 2017 | /s/ Harold R. Carpenter | |
Harold R. Carpenter | ||
Chief Financial Officer | ||
Pinnacle Financial Partners, Inc. |
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Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Aug. 01, 2017 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PINNACLE FINANCIAL PARTNERS INC | |
Entity Central Index Key | 0001115055 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 77,658,511 |
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Securities held-to-maturity, fair value | $ 21,322,047 | $ 25,233,254 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, shares issued (in shares) | 77,646,512 | 46,359,377 |
Common stock, shares outstanding (in shares) | 77,646,512 | 46,359,377 |
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Interest income: | ||||
Loans, including fees | $ 112,319,700 | $ 77,043,106 | $ 205,537,647 | $ 151,447,310 |
Securities: | ||||
Taxable | 8,265,225 | 4,571,876 | 14,698,313 | 9,038,710 |
Tax-exempt | 2,235,517 | 1,443,017 | 3,913,098 | 2,936,774 |
Federal funds sold and other | 922,796 | 703,706 | 1,737,113 | 1,313,293 |
Total interest income | 123,743,238 | 83,761,705 | 225,886,171 | 164,736,087 |
Interest expense: | ||||
Deposits | 10,993,942 | 5,073,567 | 19,112,856 | 9,989,130 |
Securities sold under agreements to repurchase | 78,438 | 39,532 | 128,204 | 87,582 |
Federal Home Loan Bank advances and other borrowings | 6,043,144 | 3,605,320 | 11,250,524 | 5,713,412 |
Total interest expense | 17,115,524 | 8,718,419 | 30,491,584 | 15,790,124 |
Net interest income | 106,627,714 | 75,043,286 | 195,394,587 | 148,945,963 |
Provision for loan losses | 6,812,389 | 5,280,101 | 10,463,411 | 9,173,671 |
Net interest income after provision for loan losses | 99,815,325 | 69,763,185 | 184,931,176 | 139,772,292 |
Noninterest income: | ||||
Service charges on deposit accounts | 4,178,736 | 3,430,391 | 8,034,219 | 6,873,075 |
Investment services | 3,110,088 | 2,499,719 | 5,931,922 | 4,845,319 |
Insurance sales commissions | 1,461,160 | 1,192,827 | 3,320,050 | 2,898,686 |
Gain on mortgage loans sold, net | 4,667,537 | 4,221,301 | 8,822,489 | 7,788,852 |
Gain on sale of investment securities, net | 0 | 0 | 0 | 0 |
Trust fees | 1,677,079 | 1,491,955 | 3,382,358 | 3,072,567 |
Income from equity method investment | 8,754,718 | 9,644,310 | 16,577,455 | 14,791,834 |
Other noninterest income | 11,207,239 | 10,232,433 | 19,369,658 | 18,298,313 |
Total noninterest income | 35,056,557 | 32,712,936 | 65,438,151 | 58,568,646 |
Noninterest expense: | ||||
Salaries and employee benefits | 43,675,551 | 34,254,147 | 82,027,735 | 66,771,003 |
Equipment and occupancy | 10,712,711 | 8,312,272 | 20,387,369 | 16,442,736 |
Other real estate expense | 62,960 | 222,473 | 314,933 | 334,745 |
Marketing and other business development | 2,126,693 | 1,537,843 | 4,005,899 | 2,801,204 |
Postage and supplies | 1,122,251 | 1,049,842 | 2,318,696 | 2,006,929 |
Amortization of intangibles | 1,471,568 | 846,615 | 2,667,697 | 1,719,830 |
Merger related expense | 3,221,060 | 980,182 | 3,893,076 | 2,809,654 |
Other noninterest expense | 9,404,755 | 8,727,393 | 18,235,520 | 17,108,362 |
Total noninterest expense | 71,797,549 | 55,930,767 | 133,850,925 | 109,994,463 |
Income before income taxes | 63,074,333 | 46,545,354 | 116,518,402 | 88,346,475 |
Income tax expense | 19,987,812 | 15,758,582 | 33,778,834 | 29,594,439 |
Net income | $ 43,086,521 | $ 30,786,772 | $ 82,739,568 | $ 58,752,036 |
Per share information: | ||||
Basic net income per common share (in dollars per share) | $ 0.81 | $ 0.75 | $ 1.64 | $ 1.44 |
Diluted net income per common share (in dollars per share) | $ 0.80 | $ 0.73 | $ 1.62 | $ 1.42 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 53,097,776 | 41,274,450 | 50,574,079 | 40,678,669 |
Diluted (in shares) | 53,665,925 | 41,974,483 | 51,105,996 | 41,411,248 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) |
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Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 43,086,521 | $ 30,786,772 | $ 82,739,568 | $ 58,752,036 |
Other comprehensive income, net of tax: | ||||
Change in fair value on available-for-sale securities, net of tax | 1,795,006 | 3,211,042 | 986,851 | 9,642,510 |
Change in fair value of cash flow hedges, net of tax | 1,146,252 | (339,961) | 1,003,296 | (1,263,664) |
Net gain on sale of investment securities reclassified from other comprehensive income into net income, net of tax | 0 | 0 | 0 | 0 |
Total other comprehensive income, net of tax | 2,941,258 | 2,871,081 | 1,990,147 | 8,378,846 |
Total comprehensive income | $ 46,027,779 | $ 33,657,853 | $ 84,729,715 | $ 67,130,882 |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Business — Pinnacle Financial Partners, Inc. (Pinnacle Financial) is a bank holding company whose primary business is conducted by its wholly-owned subsidiary, Pinnacle Bank. Pinnacle Bank is a commercial bank headquartered in Nashville, Tennessee. Pinnacle Financial completed its acquisitions of CapitalMark Bank & Trust (CapitalMark), Magna Bank (Magna), Avenue Financial Holdings, Inc. (Avenue) and BNC Bancorp (BNC) on July 31, 2015, September 1, 2015, July 1, 2016 and June 16, 2017, respectively. Pinnacle Financial and Pinnacle Bank also collectively hold a 49% interest in Bankers Healthcare Group, LLC (BHG), a full-service commercial loan provider to healthcare and other professional practices. Pinnacle Bank provides a full range of banking services, including investment, mortgage, insurance services, and comprehensive wealth management services, in its 11 primarily urban markets of Tennessee, the Carolinas and Virginia. Basis of Presentation — The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions to Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles (U.S. GAAP). All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements should be read in conjunction with the Pinnacle Financial consolidated financial statements and related notes appearing in the 2016 Annual Report previously filed on Form 10-K. These consolidated financial statements include the accounts of Pinnacle Financial and its wholly-owned subsidiaries. Certain statutory trust affiliates of Pinnacle Financial as noted in footnote 12 of this report are included in these consolidated financial statements pursuant to the equity method of accounting. Significant intercompany transactions and accounts are eliminated in consolidation. Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for loan losses, determination of any impairment of intangible assets and the valuation of deferred tax assets. There have been no significant changes to Pinnacle Financial's significant accounting policies as disclosed in Pinnacle Financial's Annual Report on Form 10-K for the year ended December 31, 2016, with the exception of the adoption of ASU 2016-09, which became effective January 1, 2017, as described more fully in Recently Adopted Accounting Pronouncements below. Cash Flow Information — Supplemental cash flow information addressing certain cash and noncash transactions for each of the six months ended June 30, 2017 and June 30, 2016 was as follows:
___________________ (1) See Note 2 to these consolidated financial statements for more detailed information. Income Per Common Share — Basic net income per common share (EPS) is computed by dividing net income by the weighted average common shares outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted. The difference between basic and diluted weighted average shares outstanding is attributable to common stock options, common stock appreciation rights, restricted share awards, and restricted share unit awards. The dilutive effect of outstanding options, common stock appreciation rights, restricted share awards, and restricted share unit awards is reflected in diluted EPS by application of the treasury stock method. The following is a summary of the basic and diluted net income per share calculations for the three and six months ended June 30, 2017 and 2016:
On January 27, 2017, Pinnacle Financial completed the issuance and sale of 3,220,000 shares of common stock (including 420,000 shares issued as a result of the underwriter exercising its over-allotment option) in an underwritten public offering, which shares are included in the share count above. The net proceeds of the offering, after deducting the underwriting discount and estimated offering expenses, were approximately $192.2 million. Also, Pinnacle Financial issued 27,687,100 shares of common stock in conjunction with the acquisition of BNC on June 16, 2017. Recently Adopted Accounting Pronouncements — In March 2016, the FASB issued updated guidance to Accounting Standards Update, 2016-09 Stock Compensation Improvements to Employee Share-Based Payment Activity (ASU 2016-09) intended to simplify and improve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of such awards as either equity or liabilities and classification of such awards on the statement of cash flows. This Accounting Standards Update (ASU) impacted Pinnacle Financial's consolidated financial statements by requiring that all income tax effects related to settlements of share-based payment awards be reported as increases (or decreases) to income tax expense. Previously, income tax benefits at settlement of an award were reported as an increase (or decrease) to additional paid-in capital. The ASU also requires that all income tax related cash flows resulting from share-based payments be reported as operating activities in the statement of cash flows whereas these cash flows were previously reported as a reduction to operating cash flows and an increase to financing cash flows. The guidance became effective for Pinnacle Financial on January 1, 2017. During the three and six months ended June 30, 2017, the newly adopted standard resulted in a reduction in tax expense of $789,000 and $4.6 million, respectively. Subsequent Events — Accounting Standards Codification (ASC) Topic 855, Subsequent Events, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. Pinnacle Financial evaluated all events or transactions that occurred after June 30, 2017 through the date of the issued financial statements. |
Acquisitions |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions Avenue Financial Holdings, Inc. On July 1, 2016, Pinnacle Financial consummated its merger with Avenue, and Avenue Bank, Avenue's wholly-owned bank subsidiary. Pursuant to the terms of the Agreement and Plan of Merger, dated as of January 28, 2016, by and between Pinnacle Financial and Avenue (the Avenue Merger Agreement), Avenue merged with and into Pinnacle Financial, with Pinnacle Financial continuing as the surviving corporation (the Avenue Merger). On that same day, Pinnacle Bank and Avenue Bank merged, with Pinnacle Bank continuing as the surviving entity. The following summarizes the consideration paid and an allocation of purchase price to net assets acquired (dollars in thousands):
Goodwill originating from the Avenue Merger resulted primarily from anticipated synergies arising from the combination of certain operational areas of the businesses of Avenue and Pinnacle Financial as well as the purchase premium inherent in buying a complete and successful banking operation. Goodwill associated with the Avenue Merger is not amortizable for book or tax purposes. Pinnacle Financial accounted for the Avenue Merger under the acquisition method in accordance with ASC Topic 805. Accordingly, the purchase price is allocated to the fair value of the assets acquired and liabilities assumed as of the date of merger. Purchase price allocations related to the acquisition of Avenue have been completed and are reflected in the following table (in thousands):
Explanation of certain fair value adjustments:
BNC Bancorp. On June 16, 2017, Pinnacle Financial consummated its merger with BNC. Pursuant to the terms of the Agreement and Plan of Merger, dated as of January 22, 2017, by and between Pinnacle Financial and BNC (the BNC Merger Agreement), BNC merged with and into Pinnacle Financial, with Pinnacle Financial continuing as the surviving corporation (the BNC Merger). On that same day, Pinnacle Bank and Bank of North Carolina, BNC's wholly-owned bank subsidiary, merged, with Pinnacle Bank continuing as the surviving entity. The following summarizes the consideration paid and presents a preliminary allocation of purchase price to net assets acquired (dollars in thousands):
Subsequently, Pinnacle Financial recorded costs incurred in connection with the issuance of Pinnacle Financial common stock resulting from the BNC Merger of $10.3 million which was recorded as a reduction to additional paid in capital. Certain merger-related charges resulting from cultural and systems integrations, as well as stock-based compensation expense incurred as a result of change-in-control provisions applicable to assumed equity-based awards were recorded as merger related expense. Goodwill originating from the BNC Merger resulted primarily from anticipated synergies arising from the combination of certain operational areas of the businesses of BNC and Pinnacle Financial as well as the purchase premium inherent in buying a complete and successful banking operation. Goodwill associated with the BNC Merger is not amortizable for book or tax purposes. Pinnacle Financial accounted for the BNC Merger under the acquisition method in accordance with ASC Topic 805. Accordingly, the purchase price is allocated to the fair value of the assets acquired and liabilities assumed as of the date of merger. The following purchase price allocations on the BNC Merger are preliminary and will be finalized upon the receipt of final valuations on certain assets and liabilities. Upon receipt of final fair value estimates, which must be received within one year of the BNC Merger date, Pinnacle Financial will make any final adjustments to the purchase price allocation and prospectively adjust any goodwill recorded. Information regarding Pinnacle Financial's loan discount and related deferred tax asset, core deposit intangible asset and related deferred tax liability, as well as income taxes payable and the related deferred tax balances recorded in the BNC Merger, may be adjusted as Pinnacle Financial refines its estimates. Determining the fair value of assets and liabilities, particularly illiquid assets and liabilities, is a complicated process involving significant judgment regarding estimates and assumptions used to calculate estimated fair value. Fair value adjustments based on updated estimates could materially affect the goodwill recorded on the BNC Merger. Pinnacle Financial may incur losses on the acquired loans that are materially different from losses Pinnacle Financial originally projected.
Explanation of certain fair value adjustments:
Supplemental Pro Forma Combined Results of Operations The supplemental proforma information below for the three and six months ended June 30, 2017 and 2016 gives effect to the BNC acquisition as if it had occurred on January 1, 2016. These results combine the historical results of BNC into Pinnacle Financial's consolidated statement of income and, while certain adjustments were made for the estimated impact of certain fair value adjustments, they are not indicative of what would have occurred had the acquisition taken place on the indicated date nor are they intended to represent or be indicative of future results of operations. In particular, no adjustments have been made to eliminate the amount of BNC's provision for credit losses for the first six months of 2016 that may not have been necessary had the acquired loans been recorded at fair value as of the beginning of 2016. Additionally, these financials were not adjusted for non-recurring expenses, such as merger-related charges incurred by either Pinnacle Financial or BNC. Pinnacle Financial expects to achieve operating cost savings and other business synergies as a result of the acquisition which are also not reflected in the proforma amounts.
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Equity method investment |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment | Equity method investment A summary of BHG's financial position as of June 30, 2017 and December 31, 2016 and results of operations as of and for the six months ended June 30, 2017 and 2016, were as follows (in thousands):
At June 30, 2017, technology, trade name and customer relationship intangibles, net of related amortization, totaled $15.1 million compared to $16.8 million as of December 31, 2016. Amortization expense of $832,000 and $1.7 million was included for the three and six months ended June 30, 2017, respectively, compared to $575,000 and $953,000, respectively, for the same periods in the prior year. Accretion income of $767,000 and $1.6 million was included in the three and six months ended June 30, 2017, respectively, compared to $303,000 and $1.2 million for the same periods in the prior year, respectively. During the three and six months ended June 30, 2017, Pinnacle Financial and Pinnacle Bank received dividends from BHG of $12.5 million and $14.9 million in the aggregate, respectively, compared to $16.5 million and $21.8 million, respectively, for the same periods in the prior year. Earnings from BHG are included in Pinnacle Financial's consolidated tax return. Profits from intercompany transactions are eliminated. No loans were purchased from BHG by Pinnacle Bank for the six-month periods ended June 30, 2017 or June 30, 2016, respectively. |
Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Securities The amortized cost and fair value of securities available-for-sale and held-to-maturity at June 30, 2017 and December 31, 2016 are summarized as follows (in thousands):
At June 30, 2017, approximately $1.24 billion of securities within Pinnacle Financial's investment portfolio were pledged to secure either public funds and other deposits or securities sold under agreements to repurchase. At June 30, 2017, repurchase agreements comprised of secured borrowings totaled $205.0 million and were secured by $205.0 million of pledged U.S. government agency securities, municipal securities, asset backed securities, and corporate debentures. As the fair value of securities pledged to secure repurchase agreements may decline, Pinnacle Financial regularly evaluates its need to pledge additional securities to remain adequately secured. The amortized cost and fair value of debt securities as of June 30, 2017 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage- and asset-backed securities since the mortgages and assets underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories in the following summary (in thousands):
At June 30, 2017 and December 31, 2016, the following investments had unrealized losses. The table below classifies these investments according to the term of the unrealized losses of less than twelve months or twelve months or longer (in thousands):
The applicable dates for determining when securities are in an unrealized loss position are June 30, 2017 and December 31, 2016. As such, it is possible that a security had a market value that exceeded its amortized cost on other days during the past twelve-month periods ended June 30, 2017 and December 31, 2016, but is in the "Investments with an Unrealized Loss of less than 12 months" category above. As shown in the tables above, including both available-for-sale and held-to-maturity investment securities, at June 30, 2017, Pinnacle Financial had approximately $20.7 million in unrealized losses on $1.79 billion of securities. The unrealized losses associated with these investment securities are driven by changes in interest rates and are not due to the credit quality of the securities. These securities will continue to be monitored as a part of Pinnacle Financial's ongoing impairment analysis. Management evaluates the financial performance of the issuers on a quarterly basis to determine if it is probable that the issuers can make all contractual principal and interest payments. Because Pinnacle Financial currently does not intend to sell those securities that have an unrealized loss at June 30, 2017, and it is not more-likely-than-not that Pinnacle Financial will be required to sell the securities before recovery of their amortized cost bases, which may be maturity, Pinnacle Financial does not consider these securities to be other-than-temporarily impaired at June 30, 2017. Periodically, available-for-sale securities may be sold or the composition of the portfolio realigned to improve yields, quality or marketability, or to implement changes in investment or asset/liability strategy, including maintaining collateral requirements and raising funds for liquidity purposes. Additionally, if an available-for-sale security loses its investment grade or tax-exempt status, the underlying credit support is terminated or collection otherwise becomes uncertain based on factors known to management, Pinnacle Financial will consider selling the security, but will review each security on a case-by-case basis as these factors become known. The carrying values of Pinnacle Financial's investment securities could decline in the future if the financial condition of issuers deteriorates and management determines it is probable that Pinnacle Financial will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future. Additionally, there is a risk that other-than-temporary impairment charges may occur in the future if management's intention to hold these securities to maturity and/or recovery changes. |
Loans and Allowance for Loan Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses For financial reporting purposes, Pinnacle Financial classifies its loan portfolio based on the underlying collateral utilized to secure each loan. This classification is consistent with those utilized in the Quarterly Report of Condition and Income filed with the Federal Deposit Insurance Corporation (FDIC). Pinnacle Financial uses five loan categories: commercial real estate mortgage, consumer real estate mortgage, construction and land development, commercial and industrial, and consumer and other.
Commercial loans receive risk ratings assigned by a financial advisor and approved by a senior credit officer subject to validation by Pinnacle Financial's independent loan review department. Risk ratings are categorized as pass, special mention, substandard, substandard-nonaccrual or doubtful-nonaccrual. Pinnacle Financial believes that its categories follow those used by Pinnacle Bank's primary regulators. At June 30, 2017, approximately 77% of Pinnacle Financial's loan portfolio was analyzed as a commercial loan type with a specifically assigned risk rating in the allowance for loan loss assessment. Consumer loans and small business loans are generally not assigned an individual risk rating but are evaluated as either accrual or nonaccrual based on the performance of the individual loans. However, certain consumer real-estate mortgage loans and certain consumer and other loans receive a specific risk rating due to the loan proceeds being used for commercial purposes even though the collateral may be of a consumer loan nature. Risk ratings are subject to continual review by a financial advisor and a senior credit officer. At least annually, Pinnacle Financial's credit procedures require that every risk rated loan of $1.0 million or more be subject to a formal credit risk review process by the assigned financial advisor. Each loan's risk rating is also subject to review by Pinnacle Financial's independent loan review department, which reviews a substantial portion of Pinnacle Financial's risk rated portfolio annually. Included in the coverage are independent loan reviews of loans in targeted higher-risk portfolio segments such as certain commercial and industrial loans, land loans and/or loan types in certain geographies. The following table presents Pinnacle Financial's loan balances by primary loan classification and the amount within each risk rating category. Pass rated loans include all credits other than those included in special mention, substandard, substandard-nonaccrual and doubtful-nonaccrual which are defined as follows:
The following table outlines the amount of each loan classification categorized into each risk rating category as of June 30, 2017 and December 31, 2016 (in thousands):
The table below details the loans acquired from BNC and the fair value adjustment with respect thereto as of June 30, 2017 (dollars in thousands):
Loans acquired with deteriorated credit quality are recorded pursuant to the provisions of ASC 310-30, and are referred to as purchase credit impaired loans. The following table provides a rollforward of purchase credit impaired loans from December 31, 2016 through June 30, 2017 (in thousands):
Certain of these loans have been deemed to be collateral dependent and as such, no accretable yield has been recorded for these loans. The carrying value is adjusted for additional draws, pursuant to contractual arrangements, offset by loan paydowns. Year-to-date settlements include both loans that were charged-off as well as loans that were paid off, typically as a result of refinancings at other institutions. For the three and six months ended June 30, 2017, the average balance of nonaccrual loans was $26.7 million and $26.7 million, respectively, compared to $37.0 million and $36.6 million, respectively, for the same periods in 2016. Pinnacle Financial's policy is that the discontinuation of the accrual of interest income will occur when (1) there is a significant deterioration in the financial condition of the borrower and full repayment of principal and interest is not expected or (2) the principal or interest is more than 90 days past due, unless the loan is both well secured and in the process of collection. As such, at the date the above mentioned loans were placed on nonaccrual status, Pinnacle Financial reversed all previously accrued interest income against current year earnings. Pinnacle Financial's policy is that once a loan is placed on nonaccrual status each subsequent payment is reviewed on a case-by-case basis to determine if the payment should be applied to interest or principal pursuant to regulatory guidelines. Pinnacle Financial recognized approximately $16,000 and $65,000, respectively, in interest income from cash payments received on nonaccrual loans during the three and six months ended June 30, 2017, compared to approximately $41,000 and $88,000, respectively, during the three and six months ended June 30, 2016. Had these nonaccruing loans been on accruing status, interest income would have been higher by $1.0 million and $1.5 million for the three and six months ended June 30, 2017, respectively, compared to $396,000 and $676,000 for the three and six months ended June 30, 2016, respectively. The following table details the recorded investment, unpaid principal balance and related allowance of Pinnacle Financial's nonaccrual loans at June 30, 2017 and December 31, 2016 by loan classification (in thousands):
The following table details the average recorded investment and the amount of interest income recognized on a cash basis for the three and six months ended June 30, 2017 and 2016, respectively, on Pinnacle Financial's nonaccrual loans that remain on the balance sheets as of such date (in thousands):
At June 30, 2017 and December 31, 2016, there were $14.2 million and $15.0 million, respectively, of troubled debt restructurings that were performing as of their restructure date and which were accruing interest. The following table outlines the amount of each loan category where troubled debt restructurings were made during the three and six months ended June 30, 2017 and 2016 (dollars in thousands):
During the six months ended June 30, 2017 and 2016, Pinnacle Financial did not have any troubled debt restructurings that subsequently defaulted within twelve months of the restructuring. To monitor concentration risk, Pinnacle Financial utilizes broadly accepted industry classification systems in order to classify borrowers into various industry classifications. Pinnacle Financial has a credit exposure (loans outstanding plus unfunded lines of credit) exceeding 25% of Pinnacle Bank's total risk-based capital to borrowers in the following industries at June 30, 2017 with the comparative exposures for December 31, 2016 (in thousands):
The table below presents past due balances by loan classification and segment at June 30, 2017 and December 31, 2016, allocated between accruing and nonaccrual status (in thousands):
The following table shows the allowance allocation by loan classification and accrual status at June 30, 2017 and December 31, 2016 (in thousands):
The following table details the changes in the allowance for loan losses for the three and six months ended June 30, 2017 and 2016, respectively, by loan classification (in thousands):
The following table details the allowance for loan losses and recorded investment in loans by loan classification and by impairment evaluation method as of June 30, 2017 and December 31, 2016, respectively (in thousands):
The adequacy of the allowance for loan losses is assessed at the end of each calendar quarter. The level of the allowance is based upon evaluation of the loan portfolio, current asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers' ability to repay (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, historical loss experience, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. The allowance for loan losses for purchased loans is calculated similarly to the method utilized for legacy Pinnacle Bank loans. Pinnacle Financial's accounting policy is to compare the computed allowance for loan losses for purchased loans on a loan-by-loan basis to any remaining fair value adjustment. If the computed allowance is greater than the remaining fair value adjustment, the excess is added to the allowance for loan losses by a charge to the provision for loan losses. At June 30, 2017, Pinnacle Bank had granted loans and other extensions of credit amounting to approximately $25.8 million to current directors, executive officers, and their related entities, of which $17.2 million had been drawn upon. At December 31, 2016, Pinnacle Bank had granted loans and other extensions of credit amounting to approximately $22.6 million to directors, executive officers, and their related entities, of which approximately $14.8 million had been drawn upon. None of these loans to directors, executive officers, and their related entities were impaired at June 30, 2017 or December 31, 2016. At June 30, 2017, Pinnacle Financial had approximately $11.4 million in commercial loans held for sale, which included loans previously held in Pinnacle Bank's commercial loan portfolio that it has elected to sell as well apartment loans originated for sale to a third-party as part of a multi-family loan program. Such loans are closed under a pass-through commitment structure wherein Pinnacle Bank's loan commitment to the borrower is the same as the third party's take-out commitment to Pinnacle Bank, and the third party purchase typically occurs within thirty days of Pinnacle Bank closing with the borrowers. Residential Lending At June 30, 2017, Pinnacle Financial had approximately $90.3 million of mortgage loans held-for-sale compared to approximately $47.7 million at December 31, 2016. Total loan volumes sold during the six months ended June 30, 2017 were approximately $262.0 million compared to approximately $198.2 million for the six months ended June 30, 2016. During the six months ended June 30, 2017, Pinnacle Financial recognized $8.8 million in gains on the sale of these loans, net of commissions paid, compared to $7.8 million during the six months ended June 30, 2016. These mortgage loans held-for-sale are originated internally and are primarily to borrowers in Pinnacle Bank's geographic markets. These sales are typically on a mandatory basis to investors that follow conventional government sponsored entities (GSE) and the Department of Housing and Urban Development/U.S. Department of Veterans Affairs (HUD/VA) guidelines. Each purchaser of a mortgage loan held-for-sale has specific guidelines and criteria for sellers of loans, and the risk of credit loss with regard to the principal amount of the loans sold is generally transferred to the purchasers upon sale. While the loans are sold without recourse, the purchase agreements require Pinnacle Bank to make certain representations and warranties regarding the existence and sufficiency of file documentation and the absence of fraud by borrowers or other third parties such as appraisers in connection with obtaining the loan. If it is determined that the loans sold were in breach of these representations or warranties, Pinnacle Bank has obligations to either repurchase the loan for the unpaid principal balance and related investor fees or make the purchaser whole for the economic benefits of the loan. To date, repurchase activity pursuant to the terms of these representations and warranties has been insignificant to Pinnacle Bank. |
Income Taxes |
6 Months Ended |
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Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes ASC 740, Income Taxes, defines the threshold for recognizing the benefits of tax return positions in the financial statements as "more-likely-than-not" to be sustained by the taxing authority. This section also provides guidance on the derecognition, measurement and classification of income tax uncertainties, along with any related interest and penalties, and includes guidance concerning accounting for income tax uncertainties in interim periods. The unrecognized tax benefit related to uncertain tax positions related to state income tax filings was $1.3 million at June 30, 2017 compared to $196,000 at June 30, 2016. No change was recorded to the unrecognized tax benefit related to uncertain tax positions in each of the three and six month periods ended June 30, 2017 and 2016. Pinnacle Financial's policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The total amount of interest and penalties recorded in the income statement for the three and six months ended June 30, 2017 was $3,600 and $22,000, respectively, compared to no interest and penalties for the three and six months ended June 30, 2016. Pinnacle Financial's effective tax rate for the three and six months ended June 30, 2017 was 31.7% and 29.0%, respectively, compared to 33.9% and 33.5% for the three and six months ended June 30, 2016. The difference between the effective tax rate and the federal and state income tax statutory rate of 39.23% is primarily due to state excise tax expense, investments in bank qualified municipal securities, tax benefits of Pinnacle Financial's real estate investment trust subsidiary, participation in the Community Investment Tax Credit (CITC) program, and tax benefits associated with share-based compensation, bank-owned life insurance and our captive insurance subsidiary, offset in part by the limitation on deductibility of meals and entertainment expense and certain merger-related expenses. The impact of the adoption of ASU 2016-09 (as described in Note 1) was included in income tax expense for the three and six months ended June 30, 2017, resulting in the recognition of $789,000 and $4.6 million, respectively, of tax benefits which reduced income tax expense. Prior to the adoption of ASU 2016-09, these tax benefits were recorded as an increase to additional paid-in-capital. |
Commitments and Contingent Liabilities |
6 Months Ended |
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Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities In the normal course of business, Pinnacle Financial has entered into off-balance sheet financial instruments which include commitments to extend credit (i.e., including unfunded lines of credit) and standby letters of credit. Commitments to extend credit are usually the result of lines of credit granted to existing borrowers under agreements that the total outstanding indebtedness will not exceed a specific amount during the term of the indebtedness. Typical borrowers are commercial concerns that use lines of credit to supplement their treasury management functions, and thus their total outstanding indebtedness may fluctuate during any time period based on the seasonality of their business and the resultant timing of their cash flows. Other typical lines of credit are related to home equity loans granted to consumers. Commitments to extend credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. At June 30, 2017, these commitments amounted to $5.0 billion. Standby letters of credit are generally issued on behalf of an applicant (our customer) to a specifically named beneficiary and are the result of a particular business arrangement that exists between the applicant and the beneficiary. Standby letters of credit have fixed expiration dates and are usually for terms of two years or less unless terminated beforehand due to criteria specified in the standby letter of credit. A typical arrangement involves the applicant routinely being indebted to the beneficiary for such items as inventory purchases, insurance, utilities, lease guarantees or other third party commercial transactions. The standby letter of credit would permit the beneficiary to obtain payment from Pinnacle Financial under certain prescribed circumstances. Subsequently, Pinnacle Financial would then seek reimbursement from the applicant pursuant to the terms of the standby letter of credit. At June 30, 2017, these commitments amounted to $135.8 million. Pinnacle Financial typically follows the same credit policies and underwriting practices when making these commitments as it does for on-balance sheet instruments. Each customer's creditworthiness is typically evaluated on a case-by-case basis, and the amount of collateral obtained, if any, is based on management's credit evaluation of the customer. Collateral held varies but may include cash, real estate and improvements, marketable securities, accounts receivable, inventory, equipment and personal property. The contractual amounts of these commitments are not reflected in the consolidated financial statements and only amounts drawn upon would be reflected in the future. Since many of the commitments are expected to expire without being drawn upon, the contractual amounts do not necessarily represent future cash requirements. However, should the commitments be drawn upon and should Pinnacle Financial's customers default on their resulting obligation to Pinnacle Financial, the maximum exposure to credit loss, without consideration of collateral, is represented by the contractual amount of those commitments. At June 30, 2017 and December 31, 2016, Pinnacle Financial had accrued $3.1 million and $1.1 million, respectively, for the inherent risks associated with these off-balance sheet commitments. Various legal claims also arise from time to time in the normal course of business. In the opinion of management, the resolution of these claims outstanding at June 30, 2017 will not have a material adverse impact on Pinnacle Financial's consolidated financial condition, operating results or cash flows. |
Stock Options and Restricted Shares |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Options and Restricted Shares | Stock Options and Restricted Shares As described more fully in the Annual Report on Form 10-K, as of December 31, 2016, Pinnacle Financial has one equity incentive plan under which it is able to grant awards, the 2014 Equity Incentive Plan (2014 Plan) and has assumed the stock option plan of CapitalMark (the CapitalMark Option Plan) in connection with the CapitalMark Merger and the BNC Bancorp 2013 Amended and Restated Omnibus Stock Incentive Plan (BNC Plan) in connection with the acquisition of BNC. In addition, awards previously granted remain outstanding under equity plans previously adopted by Pinnacle Financial's board of directors. No new awards may be granted under plans other than the 2014 Plan, or, in the case of associates that were former associates of BNC or its subsidiaries, the BNC Plan. Total shares available for issuance under the 2014 Plan were approximately 735,912 shares as of June 30, 2017, inclusive of shares returned to plan reserves during the six months ended June 30, 2017. The 2014 Plan also permits Pinnacle Financial to reissue awards currently outstanding that are subsequently forfeited, settled in cash or expired unexercised and returned to the 2014 Plan. Upon the acquisition of CapitalMark, Pinnacle Financial assumed approximately 858,000 of stock options under the CapitalMark Plan. No further shares remain available for issuance under the CapitalMark Option Plan. Approximately 33,000 shares remain available for issuance to existing BNC associates in future periods, related to the BNC Plan. No options were assumed upon the acquisition of Magna, Avenue or BNC as all preexisting Magna, Avenue and BNC stock options were converted to cash upon acquisition. Common Stock Options A summary of the stock option activity within the equity incentive plans during the six months ended June 30, 2017 and information regarding expected vesting, contractual terms remaining, intrinsic values and other matters is as follows:
Compensation costs related to stock options granted under Pinnacle Financial's equity incentive plan have been fully recognized and all outstanding option awards are fully vested. Restricted Share Awards A summary of activity for unvested restricted share awards for the six months ended June 30, 2017 is as follows:
Pinnacle Financial has granted restricted share awards to associates, executive management and outside directors with a combination of time and, in the case of executive management, performance vesting criteria. The following table outlines restricted stock grants that were awarded, grouped by similar vesting criteria, during the six months ended June 30, 2017:
Restricted Share Units The following table details the Restricted Share Unit awards outstanding at June 30, 2017:
Stock compensation expense related to restricted share awards and restricted share units for the three and six months ended June 30, 2017 was $5.2 million and $8.6 million, respectively, compared to $2.6 million and $5.2 million, respectively, for the three and six months ended June 30, 2016. Included in the above three and six months ended June 30, 2017 stock compensation expense was $1.5 million of stock-based compensation expense incurred as a result of change-in-control provisions applicable to assumed equity-based awards that was recorded as merger related expense. |
Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments Financial derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. For derivatives not designated as hedges, the gain or loss is recognized in current period earnings. Non-hedge derivatives Pinnacle Financial enters into interest rate swaps (swaps) to facilitate customer transactions and meet their financing needs. Upon entering into these instruments to meet customer needs, Pinnacle Financial enters into offsetting positions in order to minimize the risk to Pinnacle Financial. These swaps are derivatives, but are not designated as hedging instruments. A summary of Pinnacle Financial's interest rate swaps related to customers as of June 30, 2017 and December 31, 2016 is included in the following table (in thousands):
Hedge derivatives Pinnacle Financial uses forward cash flow hedge relationships in an effort to manage future interest rate exposure. The hedging strategy converts the LIBOR-based variable interest rate on forecasted borrowings to a fixed interest rate and is used in an effort to protect Pinnacle Financial from floating interest rate variability. A summary of Pinnacle Financial's cash flow hedge relationships as of June 30, 2017 and December 31, 2016 are as follows (in thousands):
Pinnacle Financial has interest rate swap agreements designated as cash flow hedges intended to protect against the variability of cash flows on selected LIBOR-based loans. The swaps hedge the interest rate risk, wherein Pinnacle Financial receives a fixed rate of interest from a counterparty and pays a variable rate, based on one month LIBOR. The swaps were entered into with a counterparty that met Pinnacle Financial's credit standards and the agreements contain collateral provisions protecting the at-risk party. The following outlines the interest rate swap agreements in place at June 30, 2017 and December 31, 2016 (in thousands):
The cash flow hedges were determined to be fully effective during the periods presented. Therefore, no amount of ineffectiveness has been included in net income. The aggregate fair value of the swaps is recorded in other assets or other liabilities with changes in fair value recorded in accumulated other comprehensive (loss) income, net of tax. If a hedge was deemed to be ineffective, the amount included in accumulated other comprehensive (loss) income would be reclassified into a line item within the statement of income that impacts operating results. The hedge would no longer be considered effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence or Pinnacle Financial discontinues hedge accounting. Pinnacle Financial expects the hedges to remain fully effective during the remaining terms of the swaps. Pinnacle Financial does not expect any amounts to be reclassified from accumulated other comprehensive (loss) income related to these swaps over the next twelve months. |
Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments FASB ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements. The definition of fair value focuses on the exit price, i.e., the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, not the entry price, i.e., the price that would be paid to acquire the asset or received to assume the liability at the measurement date. The statement emphasizes that fair value is a market-based measurement; not an entity-specific measurement. Therefore, the fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. Valuation Hierarchy FASB ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:
A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. Assets Securities available-for-sale – Where quoted prices are available for identical securities in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government securities and certain other financial products. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. In certain cases where there is limited activity or less transparency around inputs to the valuation and more complex pricing models or discounted cash flows are used, securities are classified within Level 3 of the valuation hierarchy. Other investments – Included in other assets are other investments recorded at fair value primarily in certain nonpublic private equity funds. The valuation of nonpublic private equity investments requires management judgment due to the absence of observable quoted market prices, inherent lack of liquidity and the long-term nature of such assets. These investments are valued initially based upon transaction price. The carrying values of other investments are adjusted either upwards or downwards from the transaction price to reflect expected exit values as evidenced by financing and sale transactions with third parties, or when determination of a valuation adjustment is confirmed through ongoing reviews by senior investment managers. A variety of factors are reviewed and monitored to assess positive and negative changes in valuation including, but not limited to, current operating performance and future expectations of the particular investment, industry valuations of comparable public companies and changes in market outlook and the third-party financing environment over time. In determining valuation adjustments resulting from the investment review process, emphasis is placed on current company performance and market conditions. These investments are included in Level 3 of the valuation hierarchy as these funds are not widely traded and the underlying investments of such funds are often privately-held and/or start-up companies for which market values are not readily available. Other assets – Included in other assets are certain assets carried at fair value, including interest rate swap agreements, the cash flow hedge and interest rate locks associated with the mortgage loan pipeline. The carrying amount of interest rate swap agreements is based on Pinnacle Financial's pricing models that utilize observable market inputs. The fair value of the cash flow hedge is determined by calculating the difference between the discounted fixed rate cash flows and the discounted variable rate cash flows. The fair value of the mortgage loan pipeline is based upon the projected sales price of the underlying loans, taking into account market interest rates and other market factors at the measurement date, net of the projected fallout rate. Pinnacle Financial reflects these assets within Level 2 of the valuation hierarchy as these assets are valued using similar transactions that occur in the market. Nonaccrual loans – A loan is classified as nonaccrual when it is probable Pinnacle Financial will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Nonaccrual loans are measured based on the present value of expected payments using the loan's original effective rate as the discount rate, the loan's observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. If the recorded investment in the nonaccrual loan exceeds the measure of fair value, a valuation allowance may be established as a component of the allowance for loan losses or the difference may be recognized as a charge-off. Nonaccrual loans are classified within Level 3 of the hierarchy due to the unobservable inputs used in determining their fair value such as collateral values and the borrower's underlying financial condition. Other real estate owned – Other real estate owned (OREO) represents real estate foreclosed upon by Pinnacle Bank through loan defaults by customers or acquired by deed in lieu of foreclosure. Substantially all of these amounts relate to lots, homes and development projects that are either completed or are in various stages of construction for which Pinnacle Financial believes it has adequate collateral. Upon foreclosure, the property is recorded at the lower of cost or fair value, based on appraised value, less selling costs estimated as of the date acquired with any loss recognized as a charge-off through the allowance for loan losses. Additional OREO losses for subsequent valuation downward adjustments are determined on a specific property basis and are included as a component of noninterest expense along with holding costs. Any gains or losses realized at the time of disposal are also reflected in noninterest expense, as applicable. OREO is included in Level 3 of the valuation hierarchy due to the lack of observable market inputs into the determination of fair value. Appraisal values are property-specific and sensitive to the changes in the overall economic environment. Liabilities Other liabilities – Pinnacle Financial has certain liabilities carried at fair value including certain interest rate swap agreements to facilitate customer transactions and the cash flow hedge and interest rate locks associated with the funding for its mortgage loan originations. The fair value of these liabilities is based on Pinnacle Financial's pricing models that utilize observable market inputs and is reflected within Level 2 of the valuation hierarchy. The following tables present financial instruments measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016, by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands:
The following table presents assets measured at fair value on a nonrecurring basis as of June 30, 2017 and December 31, 2016 (in thousands):
(1) Amount is net of valuation allowance of $1.4 million and $1.1 million at June 30, 2017 and December 31, 2016, respectively, as required by ASC 310-10, "Receivables." In the case of the investment securities portfolio, Pinnacle Financial monitors the portfolio to ascertain when transfers between levels have been affected. The nature of the remaining assets and liabilities is such that transfers in and out of any level are expected to be rare. For the three and six months ended June 30, 2017, there were no transfers between Levels 1, 2 or 3. The table below includes a rollforward of the balance sheet amounts for the three and six months ended June 30, 2017 (including the change in fair value) for financial instruments classified by Pinnacle Financial within Level 3 of the valuation hierarchy measured at fair value on a recurring basis including changes in fair value due in part to observable factors that are part of the valuation methodology (in thousands):
The following methods and assumptions were used by Pinnacle Financial in estimating its fair value disclosures for financial instruments that are not measured at fair value. In cases where quoted market prices are not available, fair values are based on estimates using discounted cash flow models. Those models are significantly affected by the assumptions used, including the discount rates, estimates of future cash flows and borrower creditworthiness. The fair value estimates presented herein are based on pertinent information available to management as of June 30, 2017 and December 31, 2016. Such amounts have not been revalued for purposes of these consolidated financial statements since those dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. Securities held-to-maturity - Estimated fair values for investment securities are based on quoted market prices where available. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs or quoted prices of securities with similar characteristics. Loans, net - The fair value of our loan portfolio includes a credit risk factor in the determination of the fair value of our loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. Our loan portfolio is initially fair valued using a segmented approach. We divide our loan portfolio into the following categories: variable rate loans, impaired loans and all other loans. The results are then adjusted to account for credit risk. For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. For other loans, fair values are estimated using discounted cash flow models, using current market interest rates offered for loans with similar terms to borrowers of similar credit quality. The values derived from the discounted cash flow approach for each of the above portfolios are then further discounted to incorporate credit risk to determine the exit price. Mortgage loans held-for-sale - Mortgage loans held-for-sale are carried at the lower of cost or fair value. The estimate of fair value is based on pricing models and other information. Deposits, securities sold under agreements to repurchase, Federal Home Loan Bank (FHLB) advances, subordinated debt and other borrowings - The fair value of demand deposits, savings deposits and securities sold under agreements to repurchase are derived from a selection of market transactions reflecting our peer group. The carrying value of floating rate advances from the FHLB, floating rate subordinated debt and other borrowings, and floating rate loans approximate their fair values due to having no stated maturity. Fair values for certificates of deposit, fixed rate advances from the FHLB and fixed rate subordinated debt are estimated using discounted cash flow models, using current market interest rates offered on certificates, advances and other borrowings with similar remaining maturities. For fixed rate subordinated debt, the maturity is assumed to be as of the earliest date that the indebtedness will be repriced. Off-balance sheet instruments - The fair values of Pinnacle Financial's off-balance-sheet financial instruments are based on fees charged to enter into similar agreements. However, commitments to extend credit do not represent a significant value to Pinnacle Financial until such commitments are funded. The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at June 30, 2017 and December 31, 2016. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as non-interest bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity (in thousands):
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Regulatory Matters |
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Regulatory Capital Requirements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters | Regulatory Matters Pursuant to Tennessee banking law, Pinnacle Bank may not, without the prior consent of the Commissioner of the Tennessee Department of Financial Institutions (TDFI), pay any dividends to Pinnacle Financial in a calendar year in excess of the total of Pinnacle Bank's retained net income for that year plus the retained net income for the preceding two years. During the six months ended June 30, 2017, Pinnacle Bank paid $15.7 million in dividends to Pinnacle Financial. Since the first quarter of 2016, Pinnacle Financial has paid a quarterly common stock dividend of $0.14 per share. The amount and timing of all future dividend payments by Pinnacle Financial, if any, is subject to discretion of Pinnacle Financial's board of directors and will depend on Pinnacle Financial's earnings, capital position, financial condition and other factors, including then applicable regulatory capital requirements, as they become known to Pinnacle Financial. Pinnacle Financial and Pinnacle Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions, by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Pinnacle Financial and Pinnacle Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Pinnacle Financial's and Pinnacle Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require Pinnacle Financial and its banking subsidiary to maintain minimum amounts and ratios of common equity Tier 1 capital to risk-weighted assets, Tier I capital to risk-weighted assets, total risk-based capital to risk-weighted assets and of Tier 1 capital to average assets. The final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel III rules) became effective for Pinnacle Financial on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. The minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: (i) a common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6%; (iii) a total risk-based capital ratio of 8%; and (iv) a Tier 1 leverage ratio of 4% for all institutions. The Basel III rules, also establish a capital conservation buffer of 2.5% (to be phased in over three years) above the regulatory minimum risk-based capital ratios. The capital conservation buffer was phased in beginning in January 2016 at 0.625% and is scheduled to increase each year by a like percentage until fully implemented in January 2019. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes, as of June 30, 2017, that Pinnacle Financial and Pinnacle Bank met all capital adequacy requirements to which they are subject. To be categorized as well-capitalized under applicable banking regulations, Pinnacle Financial and Pinnacle Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 and Tier 1 leverage ratios as set forth in the following table and not be subject to a written agreement, order or directive to maintain a higher capital level. Pinnacle Financial's and Pinnacle Bank's actual capital amounts and ratios are presented in the following table (in thousands):
(*) Average assets for the above calculations were based on the most recent quarter. |
Subordinated Debt and Other borrowings |
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Subordinated Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated Debt and Other borrowings | Subordinated Debt and Other borrowings Pinnacle Financial has twelve wholly-owned subsidiaries that are statutory business trusts created for the exclusive purpose of issuing 30-year capital trust preferred securities. Additionally, Pinnacle Financial has entered into certain other subordinated debt agreements and a revolving credit facility as outlined below and fully described in its Annual Report on Form 10-K (in thousands):
______________________ (1) Migrates to three month LIBOR + 3.128% beginning July 30, 2020 through the end of the term. (2) Migrates to three month LIBOR + 4.95% beginning January 1, 2020 through the end of the term. (3) Migrates to three month LIBOR + 3.884% beginning November 16, 2021 through the end of the term. (4) Coupon structure includes a floor of 5.5% and a cap of 9.5% (5) Borrowing capacity on the revolving credit facility is $75.0 million. At June 30, 2017, there was no outstanding balance under this facility. Included in the table above, Pinnacle Financial assumed BNC's obligations under its outstanding $60.0 million principal amount of subordinated notes issued in September 2014 that mature in October 2024. These notes bear interest at a rate of 5.5% per annum until September 30, 2019 and may not be repaid prior to that date. Beginning on October 1, 2019, if not redeemed on that date, these notes will bear interest at a floating rate equal to the three-month LIBOR determined on the determination date of the applicable interest period plus 359 basis points. Pinnacle Financial also assumed BNC's obligations under its outstanding subordinated notes with a principal balance of $10.6 million as of December 31, 2016. These notes bear interest at a variable rate of 30-day LIBOR plus 5.00% per annum, with a floor of 5.50% and a cap of 9.50%, and have a maturity date of October 15, 2023. The interest rate for these subordinated notes was 5.61% at December 31, 2016. The $50.5 million in aggregate principal amount of subordinated debentures issued by trust affiliates of BNC in connection with the issuance of trust preferred securities was also assumed in connection with Pinnacle Financial's merger with BNC. Upon consummation of the merger with BNC, Pinnacle Financial's total assets were in excess of $15.0 billion, as a result of a merger which caused the subordinated debentures Pinnacle Financial and BNC have issued in connection with prior trust preferred securities offerings to cease to qualify as Tier 1 capital under applicable banking regulations. Though these securities no longer qualify as Tier 1 capital from and after the closing of the merger, Pinnacle Financial believes these subordinated debentures continue to qualify as Tier 2 capital. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||
Basis of Presentation | Basis of Presentation — The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions to Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles (U.S. GAAP). All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements should be read in conjunction with the Pinnacle Financial consolidated financial statements and related notes appearing in the 2016 Annual Report previously filed on Form 10-K. These consolidated financial statements include the accounts of Pinnacle Financial and its wholly-owned subsidiaries. Certain statutory trust affiliates of Pinnacle Financial as noted in footnote 12 of this report are included in these consolidated financial statements pursuant to the equity method of accounting. Significant intercompany transactions and accounts are eliminated in consolidation. |
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Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for loan losses, determination of any impairment of intangible assets and the valuation of deferred tax assets. There have been no significant changes to Pinnacle Financial's significant accounting policies as disclosed in Pinnacle Financial's Annual Report on Form 10-K for the year ended December 31, 2016, with the exception of the adoption of ASU 2016-09, which became effective January 1, 2017, as described more fully in Recently Adopted Accounting Pronouncements below. |
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Income Per Common Share | Income Per Common Share — Basic net income per common share (EPS) is computed by dividing net income by the weighted average common shares outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted. The difference between basic and diluted weighted average shares outstanding is attributable to common stock options, common stock appreciation rights, restricted share awards, and restricted share unit awards. The dilutive effect of outstanding options, common stock appreciation rights, restricted share awards, and restricted share unit awards is reflected in diluted EPS by application of the treasury stock method. |
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Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements — In March 2016, the FASB issued updated guidance to Accounting Standards Update, 2016-09 Stock Compensation Improvements to Employee Share-Based Payment Activity (ASU 2016-09) intended to simplify and improve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of such awards as either equity or liabilities and classification of such awards on the statement of cash flows. This Accounting Standards Update (ASU) impacted Pinnacle Financial's consolidated financial statements by requiring that all income tax effects related to settlements of share-based payment awards be reported as increases (or decreases) to income tax expense. Previously, income tax benefits at settlement of an award were reported as an increase (or decrease) to additional paid-in capital. The ASU also requires that all income tax related cash flows resulting from share-based payments be reported as operating activities in the statement of cash flows whereas these cash flows were previously reported as a reduction to operating cash flows and an increase to financing cash flows. The guidance became effective for Pinnacle Financial on January 1, 2017. During the three and six months ended June 30, 2017, the newly adopted standard resulted in a reduction in tax expense of $789,000 and $4.6 million, respectively. |
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Subsequent Events | Subsequent Events — Accounting Standards Codification (ASC) Topic 855, Subsequent Events, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. Pinnacle Financial evaluated all events or transactions that occurred after June 30, 2017 through the date of the issued financial statements. |
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Fair Value of Financial Instruments | FASB ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements. The definition of fair value focuses on the exit price, i.e., the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, not the entry price, i.e., the price that would be paid to acquire the asset or received to assume the liability at the measurement date. The statement emphasizes that fair value is a market-based measurement; not an entity-specific measurement. Therefore, the fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. Valuation Hierarchy FASB ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:
A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. Assets Securities available-for-sale – Where quoted prices are available for identical securities in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government securities and certain other financial products. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. In certain cases where there is limited activity or less transparency around inputs to the valuation and more complex pricing models or discounted cash flows are used, securities are classified within Level 3 of the valuation hierarchy. Other investments – Included in other assets are other investments recorded at fair value primarily in certain nonpublic private equity funds. The valuation of nonpublic private equity investments requires management judgment due to the absence of observable quoted market prices, inherent lack of liquidity and the long-term nature of such assets. These investments are valued initially based upon transaction price. The carrying values of other investments are adjusted either upwards or downwards from the transaction price to reflect expected exit values as evidenced by financing and sale transactions with third parties, or when determination of a valuation adjustment is confirmed through ongoing reviews by senior investment managers. A variety of factors are reviewed and monitored to assess positive and negative changes in valuation including, but not limited to, current operating performance and future expectations of the particular investment, industry valuations of comparable public companies and changes in market outlook and the third-party financing environment over time. In determining valuation adjustments resulting from the investment review process, emphasis is placed on current company performance and market conditions. These investments are included in Level 3 of the valuation hierarchy as these funds are not widely traded and the underlying investments of such funds are often privately-held and/or start-up companies for which market values are not readily available. Other assets – Included in other assets are certain assets carried at fair value, including interest rate swap agreements, the cash flow hedge and interest rate locks associated with the mortgage loan pipeline. The carrying amount of interest rate swap agreements is based on Pinnacle Financial's pricing models that utilize observable market inputs. The fair value of the cash flow hedge is determined by calculating the difference between the discounted fixed rate cash flows and the discounted variable rate cash flows. The fair value of the mortgage loan pipeline is based upon the projected sales price of the underlying loans, taking into account market interest rates and other market factors at the measurement date, net of the projected fallout rate. Pinnacle Financial reflects these assets within Level 2 of the valuation hierarchy as these assets are valued using similar transactions that occur in the market. Nonaccrual loans – A loan is classified as nonaccrual when it is probable Pinnacle Financial will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Nonaccrual loans are measured based on the present value of expected payments using the loan's original effective rate as the discount rate, the loan's observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. If the recorded investment in the nonaccrual loan exceeds the measure of fair value, a valuation allowance may be established as a component of the allowance for loan losses or the difference may be recognized as a charge-off. Nonaccrual loans are classified within Level 3 of the hierarchy due to the unobservable inputs used in determining their fair value such as collateral values and the borrower's underlying financial condition. Other real estate owned – Other real estate owned (OREO) represents real estate foreclosed upon by Pinnacle Bank through loan defaults by customers or acquired by deed in lieu of foreclosure. Substantially all of these amounts relate to lots, homes and development projects that are either completed or are in various stages of construction for which Pinnacle Financial believes it has adequate collateral. Upon foreclosure, the property is recorded at the lower of cost or fair value, based on appraised value, less selling costs estimated as of the date acquired with any loss recognized as a charge-off through the allowance for loan losses. Additional OREO losses for subsequent valuation downward adjustments are determined on a specific property basis and are included as a component of noninterest expense along with holding costs. Any gains or losses realized at the time of disposal are also reflected in noninterest expense, as applicable. OREO is included in Level 3 of the valuation hierarchy due to the lack of observable market inputs into the determination of fair value. Appraisal values are property-specific and sensitive to the changes in the overall economic environment. Liabilities Other liabilities – Pinnacle Financial has certain liabilities carried at fair value including certain interest rate swap agreements to facilitate customer transactions and the cash flow hedge and interest rate locks associated with the funding for its mortgage loan originations. The fair value of these liabilities is based on Pinnacle Financial's pricing models that utilize observable market inputs and is reflected within Level 2 of the valuation hierarchy. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Cash Flow Information — Supplemental cash flow information addressing certain cash and noncash transactions for each of the six months ended June 30, 2017 and June 30, 2016 was as follows:
___________________ (1) See Note 2 to these consolidated financial statements for more detailed information. |
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Basic and Diluted Earnings Per Share Calculations | The following is a summary of the basic and diluted net income per share calculations for the three and six months ended June 30, 2017 and 2016:
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Acquisitions (Tables) |
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Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Pro-Forma Information | The supplemental proforma information below for the three and six months ended June 30, 2017 and 2016 gives effect to the BNC acquisition as if it had occurred on January 1, 2016. These results combine the historical results of BNC into Pinnacle Financial's consolidated statement of income and, while certain adjustments were made for the estimated impact of certain fair value adjustments, they are not indicative of what would have occurred had the acquisition taken place on the indicated date nor are they intended to represent or be indicative of future results of operations. In particular, no adjustments have been made to eliminate the amount of BNC's provision for credit losses for the first six months of 2016 that may not have been necessary had the acquired loans been recorded at fair value as of the beginning of 2016. Additionally, these financials were not adjusted for non-recurring expenses, such as merger-related charges incurred by either Pinnacle Financial or BNC. Pinnacle Financial expects to achieve operating cost savings and other business synergies as a result of the acquisition which are also not reflected in the proforma amounts.
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Avenue Financial Holdings, Inc. (Avenue) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Consideration Paid and an Allocation of Purchase Price to Net Assets Acquired | The following summarizes the consideration paid and an allocation of purchase price to net assets acquired (dollars in thousands):
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Purchase Price Allocations | Pinnacle Financial accounted for the Avenue Merger under the acquisition method in accordance with ASC Topic 805. Accordingly, the purchase price is allocated to the fair value of the assets acquired and liabilities assumed as of the date of merger. Purchase price allocations related to the acquisition of Avenue have been completed and are reflected in the following table (in thousands):
Explanation of certain fair value adjustments:
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Consideration Paid and an Allocation of Purchase Price to Net Assets Acquired | The following summarizes the consideration paid and presents a preliminary allocation of purchase price to net assets acquired (dollars in thousands):
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Purchase Price Allocations |
Explanation of certain fair value adjustments:
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Equity method investment (Tables) |
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Equity Method Investments | A summary of BHG's financial position as of June 30, 2017 and December 31, 2016 and results of operations as of and for the six months ended June 30, 2017 and 2016, were as follows (in thousands):
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Securities (Tables) |
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Amortized Cost and Fair Value of Available-for-sale and Held-to-maturity Securities | The amortized cost and fair value of securities available-for-sale and held-to-maturity at June 30, 2017 and December 31, 2016 are summarized as follows (in thousands):
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Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities as of June 30, 2017 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage- and asset-backed securities since the mortgages and assets underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories in the following summary (in thousands):
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Classification of Investments According to Term of Unrealized Losses of Less than Twelve Months or Twelve Months or Longer | At June 30, 2017 and December 31, 2016, the following investments had unrealized losses. The table below classifies these investments according to the term of the unrealized losses of less than twelve months or twelve months or longer (in thousands):
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Loans and Allowance for Loan Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Classification Categorized by Risk Rating Category | The following table outlines the amount of each loan classification categorized into each risk rating category as of June 30, 2017 and December 31, 2016 (in thousands):
The table below details the loans acquired from BNC and the fair value adjustment with respect thereto as of June 30, 2017 (dollars in thousands):
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Purchase Credit Impaired Loans | Loans acquired with deteriorated credit quality are recorded pursuant to the provisions of ASC 310-30, and are referred to as purchase credit impaired loans. The following table provides a rollforward of purchase credit impaired loans from December 31, 2016 through June 30, 2017 (in thousands):
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Summary of Recorded Investment, Unpaid Principal Balance and Related Allowance and Average Recorded Investment of Impaired Loans | The following table details the recorded investment, unpaid principal balance and related allowance of Pinnacle Financial's nonaccrual loans at June 30, 2017 and December 31, 2016 by loan classification (in thousands):
The following table details the average recorded investment and the amount of interest income recognized on a cash basis for the three and six months ended June 30, 2017 and 2016, respectively, on Pinnacle Financial's nonaccrual loans that remain on the balance sheets as of such date (in thousands):
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Amount of Troubled Debt Restructuring Categorized by Loan Classification | The following table outlines the amount of each loan category where troubled debt restructurings were made during the three and six months ended June 30, 2017 and 2016 (dollars in thousands):
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Summary of Loan Portfolio Credit Risk Exposure | To monitor concentration risk, Pinnacle Financial utilizes broadly accepted industry classification systems in order to classify borrowers into various industry classifications. Pinnacle Financial has a credit exposure (loans outstanding plus unfunded lines of credit) exceeding 25% of Pinnacle Bank's total risk-based capital to borrowers in the following industries at June 30, 2017 with the comparative exposures for December 31, 2016 (in thousands):
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Past Due Balances by Loan Classification | The table below presents past due balances by loan classification and segment at June 30, 2017 and December 31, 2016, allocated between accruing and nonaccrual status (in thousands):
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Details of Changes in the Allowance for Loan Losses | The following table shows the allowance allocation by loan classification and accrual status at June 30, 2017 and December 31, 2016 (in thousands):
The following table details the changes in the allowance for loan losses for the three and six months ended June 30, 2017 and 2016, respectively, by loan classification (in thousands):
The following table details the allowance for loan losses and recorded investment in loans by loan classification and by impairment evaluation method as of June 30, 2017 and December 31, 2016, respectively (in thousands):
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Stock Options and Restricted Shares (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option and Stock Appreciation Rights Activity | A summary of the stock option activity within the equity incentive plans during the six months ended June 30, 2017 and information regarding expected vesting, contractual terms remaining, intrinsic values and other matters is as follows:
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Summary of Activity for Unvested Restricted Share Awards | A summary of activity for unvested restricted share awards for the six months ended June 30, 2017 is as follows:
Pinnacle Financial has granted restricted share awards to associates, executive management and outside directors with a combination of time and, in the case of executive management, performance vesting criteria. The following table outlines restricted stock grants that were awarded, grouped by similar vesting criteria, during the six months ended June 30, 2017:
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Summary of Restricted Share Unit awards | The following table details the Restricted Share Unit awards outstanding at June 30, 2017:
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Derivative Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Interest Rate Swaps | A summary of Pinnacle Financial's interest rate swaps related to customers as of June 30, 2017 and December 31, 2016 is included in the following table (in thousands):
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Schedule of Derivative Instruments | Pinnacle Financial uses forward cash flow hedge relationships in an effort to manage future interest rate exposure. The hedging strategy converts the LIBOR-based variable interest rate on forecasted borrowings to a fixed interest rate and is used in an effort to protect Pinnacle Financial from floating interest rate variability. A summary of Pinnacle Financial's cash flow hedge relationships as of June 30, 2017 and December 31, 2016 are as follows (in thousands):
Pinnacle Financial has interest rate swap agreements designated as cash flow hedges intended to protect against the variability of cash flows on selected LIBOR-based loans. The swaps hedge the interest rate risk, wherein Pinnacle Financial receives a fixed rate of interest from a counterparty and pays a variable rate, based on one month LIBOR. The swaps were entered into with a counterparty that met Pinnacle Financial's credit standards and the agreements contain collateral provisions protecting the at-risk party. The following outlines the interest rate swap agreements in place at June 30, 2017 and December 31, 2016 (in thousands):
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Fair Value of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present financial instruments measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016, by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands:
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Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following table presents assets measured at fair value on a nonrecurring basis as of June 30, 2017 and December 31, 2016 (in thousands):
(1) Amount is net of valuation allowance of $1.4 million and $1.1 million at June 30, 2017 and December 31, 2016, respectively, as required by ASC 310-10, "Receivables." |
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Rollforward of the Balance Sheet Amounts, Unobservable Input Reconciliation | The table below includes a rollforward of the balance sheet amounts for the three and six months ended June 30, 2017 (including the change in fair value) for financial instruments classified by Pinnacle Financial within Level 3 of the valuation hierarchy measured at fair value on a recurring basis including changes in fair value due in part to observable factors that are part of the valuation methodology (in thousands):
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Carrying Amounts, Estimated Fair Value and Placement in the Fair Value Hierarchy of Financial Instruments | The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at June 30, 2017 and December 31, 2016. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as non-interest bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity (in thousands):
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Regulatory Matters (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Regulatory Capital Requirement | The final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel III rules) became effective for Pinnacle Financial on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. The minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: (i) a common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6%; (iii) a total risk-based capital ratio of 8%; and (iv) a Tier 1 leverage ratio of 4% for all institutions. The Basel III rules, also establish a capital conservation buffer of 2.5% (to be phased in over three years) above the regulatory minimum risk-based capital ratios. The capital conservation buffer was phased in beginning in January 2016 at 0.625% and is scheduled to increase each year by a like percentage until fully implemented in January 2019. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes, as of June 30, 2017, that Pinnacle Financial and Pinnacle Bank met all capital adequacy requirements to which they are subject. To be categorized as well-capitalized under applicable banking regulations, Pinnacle Financial and Pinnacle Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 and Tier 1 leverage ratios as set forth in the following table and not be subject to a written agreement, order or directive to maintain a higher capital level. Pinnacle Financial's and Pinnacle Bank's actual capital amounts and ratios are presented in the following table (in thousands):
(*) Average assets for the above calculations were based on the most recent quarter. |
Subordinated Debt and Other borrowings (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Subordinated Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Subordinated Debt and Other Borrowings | Pinnacle Financial has twelve wholly-owned subsidiaries that are statutory business trusts created for the exclusive purpose of issuing 30-year capital trust preferred securities. Additionally, Pinnacle Financial has entered into certain other subordinated debt agreements and a revolving credit facility as outlined below and fully described in its Annual Report on Form 10-K (in thousands):
______________________ (1) Migrates to three month LIBOR + 3.128% beginning July 30, 2020 through the end of the term. (2) Migrates to three month LIBOR + 4.95% beginning January 1, 2020 through the end of the term. (3) Migrates to three month LIBOR + 3.884% beginning November 16, 2021 through the end of the term. (4) Coupon structure includes a floor of 5.5% and a cap of 9.5% (5) Borrowing capacity on the revolving credit facility is $75.0 million. At June 30, 2017, there was no outstanding balance under this facility. |
Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||
Cash Transactions: | ||||||
Interest paid | $ 29,310,536 | $ 14,722,572 | ||||
Income taxes paid, net | 25,035,510 | 22,364,686 | ||||
Noncash Transactions: | ||||||
Loans charged-off to the allowance for loan losses | $ 5,157,000 | $ 7,146,000 | 10,320,665 | 16,372,819 | ||
Loans foreclosed upon and transferred to other real estate owned | 1,520,444 | 2,464,945 | ||||
Loans foreclosed upon and transferred to other assets | 446,487 | 1,673,946 | ||||
Common stock issued in connection with equity-method investment (in shares) | $ 0 | $ 39,694,036 | ||||
Common stock issued in connection with acquisitions (in shares) | [1] | 1,858,132,809 | 0 | |||
|
Summary of Significant Accounting Policies - Basic and Diluted Net Income Per Share Calculations (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Basic net income per share calculation: | ||||
Numerator - Net income | $ 43,086,521 | $ 30,786,772 | $ 82,739,568 | $ 58,752,036 |
Denominator - Weighted average common shares outstanding (in shares) | 53,097,776 | 41,274,450 | 50,574,079 | 40,678,669 |
Basic net income per common share (in dollars per share) | $ 0.81 | $ 0.75 | $ 1.64 | $ 1.44 |
Diluted net income per share calculation: | ||||
Numerator – Net income | $ 43,086,521 | $ 30,786,772 | $ 82,739,568 | $ 58,752,036 |
Denominator - Weighted average common shares outstanding (in shares) | 53,097,776 | 41,274,450 | 50,574,079 | 40,678,669 |
Dilutive shares contingently issuable (in shares) | 568,149 | 700,033 | 531,917 | 732,579 |
Weighted average diluted common shares outstanding (in shares) | 53,665,925 | 41,974,483 | 51,105,996 | 41,411,248 |
Diluted net income per common share (in dollars per share) | $ 0.80 | $ 0.73 | $ 1.62 | $ 1.42 |
Acquisitions - Net Assets Acquired (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Jun. 16, 2017 |
Jun. 30, 2016 |
|||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Avenue Financial Holdings, Inc. (Avenue) | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ 39,485 | |||||||||||||||||||||||||||||
Investment securities | [1] | 163,399 | ||||||||||||||||||||||||||||
Loans | [2] | 952,530 | ||||||||||||||||||||||||||||
Mortgage loans held for sale | 3,310 | |||||||||||||||||||||||||||||
Core deposit intangible | [3] | 8,845 | ||||||||||||||||||||||||||||
Other assets | [4] | 56,503 | ||||||||||||||||||||||||||||
Total Assets | 1,224,072 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Interest-bearing deposits | [5] | 743,035 | ||||||||||||||||||||||||||||
Non-interest bearing deposits | 223,685 | |||||||||||||||||||||||||||||
Borrowings | [6] | 145,879 | ||||||||||||||||||||||||||||
Other liabilities | 29,778 | |||||||||||||||||||||||||||||
Total Liabilities | 1,142,377 | |||||||||||||||||||||||||||||
Fair value of net assets assumed including estimated identifiable intangible assets | 81,695 | |||||||||||||||||||||||||||||
Avenue Financial Holdings, Inc. (Avenue) | Historical Cost Basis | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Cash and cash equivalents | 39,485 | |||||||||||||||||||||||||||||
Investment securities | [1] | 163,862 | ||||||||||||||||||||||||||||
Loans | [2] | 980,319 | ||||||||||||||||||||||||||||
Mortgage loans held for sale | 3,310 | |||||||||||||||||||||||||||||
Core deposit intangible | [3] | 0 | ||||||||||||||||||||||||||||
Other assets | [4] | 47,729 | ||||||||||||||||||||||||||||
Total Assets | 1,234,705 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Interest-bearing deposits | [5] | 741,635 | ||||||||||||||||||||||||||||
Non-interest bearing deposits | 223,685 | |||||||||||||||||||||||||||||
Borrowings | [6] | 142,639 | ||||||||||||||||||||||||||||
Other liabilities | 29,719 | |||||||||||||||||||||||||||||
Total Liabilities | 1,137,678 | |||||||||||||||||||||||||||||
Fair value of net assets assumed including estimated identifiable intangible assets | 97,027 | |||||||||||||||||||||||||||||
Avenue Financial Holdings, Inc. (Avenue) | Fair Value Adjustments | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Cash and cash equivalents | 0 | |||||||||||||||||||||||||||||
Investment securities | [1] | (463) | ||||||||||||||||||||||||||||
Loans | [2] | (27,789) | ||||||||||||||||||||||||||||
Mortgage loans held for sale | 0 | |||||||||||||||||||||||||||||
Core deposit intangible | [3] | 8,845 | ||||||||||||||||||||||||||||
Other assets | [4] | 8,774 | ||||||||||||||||||||||||||||
Total Assets | (10,633) | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Interest-bearing deposits | [5] | 1,400 | ||||||||||||||||||||||||||||
Non-interest bearing deposits | 0 | |||||||||||||||||||||||||||||
Borrowings | [6] | 3,240 | ||||||||||||||||||||||||||||
Other liabilities | 59 | |||||||||||||||||||||||||||||
Total Liabilities | 4,699 | |||||||||||||||||||||||||||||
Fair value of net assets assumed including estimated identifiable intangible assets | $ (15,332) | |||||||||||||||||||||||||||||
BNC Bancorp | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ 155,271 | |||||||||||||||||||||||||||||
Investment securities | [7] | 645,542 | ||||||||||||||||||||||||||||
Loans | [8] | 5,607,247 | ||||||||||||||||||||||||||||
Mortgage loans held for sale | 27,026 | |||||||||||||||||||||||||||||
Other real estate owned | 20,143 | |||||||||||||||||||||||||||||
Core deposit intangible | [9] | 48,528 | ||||||||||||||||||||||||||||
Property, plant and equipment | [10] | 156,805 | ||||||||||||||||||||||||||||
Other assets | [11] | 370,299 | ||||||||||||||||||||||||||||
Total Assets | 7,030,861 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Interest-bearing deposits | [12] | 5,008,008 | ||||||||||||||||||||||||||||
Non-interest bearing deposits | 1,199,342 | |||||||||||||||||||||||||||||
Borrowings | [13] | 176,977 | ||||||||||||||||||||||||||||
Other liabilities | 37,466 | |||||||||||||||||||||||||||||
Total Liabilities | 6,421,793 | |||||||||||||||||||||||||||||
Fair value of net assets assumed including estimated identifiable intangible assets | $ 609,068 | $ 609,068 | ||||||||||||||||||||||||||||
Estimated uncollectible loans (as percent) | 2.50% | |||||||||||||||||||||||||||||
Percentage of expected uncollectible loans acquired | 3.00% | |||||||||||||||||||||||||||||
BNC Bancorp | Historical Cost Basis | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ 155,271 | |||||||||||||||||||||||||||||
Investment securities | [7] | 643,875 | ||||||||||||||||||||||||||||
Loans | [8] | 5,782,720 | ||||||||||||||||||||||||||||
Mortgage loans held for sale | 27,026 | |||||||||||||||||||||||||||||
Other real estate owned | 20,143 | |||||||||||||||||||||||||||||
Core deposit intangible | [9] | 0 | ||||||||||||||||||||||||||||
Property, plant and equipment | [10] | 156,805 | ||||||||||||||||||||||||||||
Other assets | [11] | 320,988 | ||||||||||||||||||||||||||||
Total Assets | 7,106,828 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Interest-bearing deposits | [12] | 5,003,653 | ||||||||||||||||||||||||||||
Non-interest bearing deposits | 1,199,342 | |||||||||||||||||||||||||||||
Borrowings | [13] | 183,389 | ||||||||||||||||||||||||||||
Other liabilities | 35,729 | |||||||||||||||||||||||||||||
Total Liabilities | 6,422,113 | |||||||||||||||||||||||||||||
Fair value of net assets assumed including estimated identifiable intangible assets | 684,715 | |||||||||||||||||||||||||||||
BNC Bancorp | Fair Value Adjustments | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Cash and cash equivalents | 0 | |||||||||||||||||||||||||||||
Investment securities | [7] | 1,667 | ||||||||||||||||||||||||||||
Loans | [8] | (175,473) | ||||||||||||||||||||||||||||
Mortgage loans held for sale | 0 | |||||||||||||||||||||||||||||
Other real estate owned | 0 | |||||||||||||||||||||||||||||
Core deposit intangible | [9] | 48,528 | ||||||||||||||||||||||||||||
Property, plant and equipment | [10] | 0 | ||||||||||||||||||||||||||||
Other assets | [11] | 49,311 | ||||||||||||||||||||||||||||
Total Assets | (75,967) | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Interest-bearing deposits | [12] | 4,355 | ||||||||||||||||||||||||||||
Non-interest bearing deposits | 0 | |||||||||||||||||||||||||||||
Borrowings | [13] | (6,412) | ||||||||||||||||||||||||||||
Other liabilities | 1,737 | |||||||||||||||||||||||||||||
Total Liabilities | (320) | |||||||||||||||||||||||||||||
Fair value of net assets assumed including estimated identifiable intangible assets | $ (75,647) | |||||||||||||||||||||||||||||
|
Acquisitions - Narrative (Details) $ in Millions |
Jun. 30, 2017
USD ($)
|
---|---|
Avenue Financial Holdings, Inc. (Avenue) | |
Business Acquisition [Line Items] | |
Transaction costs | $ 10.3 |
Acquisitions - Supplemental Pro-forma Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
||||
Business Combinations [Abstract] | |||||||
Revenue | [1] | $ 204,172 | $ 180,436 | $ 400,407 | $ 328,384 | ||
Income before income taxes | [1] | $ 90,743 | $ 66,510 | $ 163,298 | $ 127,744 | ||
|
Equity method investment - Financial Position and Results of Operations (Details) - Bankers Healthcare Group, LLC - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Schedule of Equity Method Investments [Line Items] | |||||
Assets | $ 253,355 | $ 253,355 | $ 223,246 | ||
Liabilities | 169,357 | 169,357 | 139,531 | ||
Membership interests | 83,998 | 83,998 | 83,715 | ||
Total liabilities and membership | 253,355 | 253,355 | $ 223,246 | ||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||
Revenues | 37,012 | $ 39,330 | 71,247 | $ 70,618 | |
Net income | $ 18,013 | $ 21,439 | $ 34,024 | $ 33,593 |
Equity method investment - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Schedule of Equity Method Investments [Line Items] | |||||
Technology, trade name and customer relationship intangibles | $ 60,963,513 | $ 60,963,513 | $ 15,104,038 | ||
Amortization of Intangible Assets | 1,471,568 | $ 846,615 | 2,667,697 | $ 1,719,830 | |
Dividends received from equity method investment | 14,916,867 | 21,824,256 | |||
Bankers Healthcare Group, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Technology, trade name and customer relationship intangibles | 15,100,000 | 15,100,000 | $ 16,800,000 | ||
Amortization of Intangible Assets | 832,000 | 575,000 | 1,700,000 | 953,000 | |
Accretion income | 767,000 | 303,000 | 1,600,000 | 1,200,000 | |
Dividends received from equity method investment | 12,500,000 | 16,500,000 | 14,900,000 | 21,800,000 | |
Loan face amount | $ 0 | $ 0 | $ 0 | $ 0 |
Securities Securities - Narrative (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Securities pledged as collateral to secure public funds and other deposits or securities sold under agreements to repurchase | $ 1,240,000 | |
Secured borrowing under agreement to repurchase | 205,000 | |
Accumulated unrealized losses | 20,683 | $ 20,082 |
Fair value of securities | 1,785,658 | $ 1,006,187 |
Securities pledged as collateral | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Secured borrowing under agreement to repurchase | $ 205,000 |
Loans and Allowance for Loan Losses Loans and Allowance for Loan Losses - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of loan portfolio as commercial loan | 77.00% | 77.00% | |||
Risk rated loans | $ 1,000,000 | $ 1,000,000 | |||
Impaired receivable increase | 26,741,000 | $ 37,004,000 | 26,670,000 | $ 36,629,000 | |
Cash payments received on nonaccrual loans | 16,000 | 41,000 | 65,000 | 88,000 | |
Nonaccrual loans | 1,000,000 | 396,000 | 1,500,000 | 676,000 | |
Troubled debt restructurings performing as of restructure date | $ 14,200,000 | $ 14,200,000 | $ 15,000,000 | ||
Percentage of credit exposure to risk based capital | 25.00% | 25.00% | |||
Loans and other extensions of credit granted to directors, executive officers, and their related entities | $ 25,800,000 | $ 25,800,000 | 22,600,000 | ||
Amount drawn from loans and other extensions of credit granted | 17,200,000 | 17,200,000 | 14,800,000 | ||
Commercial loans held-for-sale | 11,400,000 | 11,400,000 | |||
Mortgage loans held-for-sale | 90,275,468 | 90,275,468 | $ 47,710,120 | ||
Loans sold | 261,981,394 | 198,239,000 | |||
Gain on mortgage loans sold, net | $ 4,667,537 | $ 4,221,301 | $ 8,822,489 | $ 7,788,852 |
Loans and Allowance for Loan Losses - Rollforward of Purchase Credit Impaired Loans (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Gross Carrying Value | |
Gross carrying value, beginning balance | $ 12,468 |
Acquisitions | 75,425 |
Year-to-date settlements | (2,919) |
Gross carrying value, ending balance | 84,974 |
Accretable Yield | |
Accretable yield, beginning balance | 0 |
Acquisitions | (300) |
Year-to-date settlements | 2 |
Accretable yield, ending balance | (298) |
Nonaccretable Yield | |
Nonaccretable yield, beginning balance | (3,633) |
Acquisitions | (25,953) |
Year-to-date settlements | 796 |
Nonaccretable yield, ending balance | (28,790) |
Net Carrying Value | |
Net carrying value, beginning balance | 8,835 |
Acquisitions | 49,172 |
Year-to-date settlements | (2,121) |
Net carrying value, ending balance | $ 55,886 |
Loans and Allowance for Loan Losses - Recorded Investment, Principal Balance and Related Allowance (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded investment | $ 40,216 | $ 40,216 | $ 27,577 | |||||||
Unpaid principal balances | [1] | 48,501 | 48,501 | 31,612 | ||||||
Valuation allowance | [2] | 1,405 | 1,405 | 1,071 | ||||||
Average recorded investment | 26,741 | $ 37,004 | 26,670 | $ 36,629 | ||||||
Interest income recognized | 16 | 41 | 65 | 88 | ||||||
Collateral dependent nonaccrual loans: | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded investment | 32,278 | 32,278 | 14,689 | |||||||
Unpaid principal balances | [1] | 39,796 | 39,796 | 14,769 | ||||||
Valuation allowance | [2] | 0 | 0 | 0 | ||||||
Average recorded investment | 17,026 | 27,585 | 15,434 | 27,220 | ||||||
Interest income recognized | 16 | 41 | 65 | 88 | ||||||
Collateral dependent nonaccrual loans: | Commercial real estate - mortgage | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded investment | 9,532 | 9,532 | 2,308 | |||||||
Unpaid principal balances | [1] | 12,824 | 12,824 | 2,312 | ||||||
Valuation allowance | [2] | 0 | 0 | 0 | ||||||
Average recorded investment | 4,019 | 3,845 | 3,298 | 3,474 | ||||||
Interest income recognized | 0 | 0 | 0 | 0 | ||||||
Collateral dependent nonaccrual loans: | Consumer real estate - mortgage | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded investment | 14,539 | 14,539 | 2,880 | |||||||
Unpaid principal balances | [1] | 17,508 | 17,508 | 2,915 | ||||||
Valuation allowance | [2] | 0 | 0 | 0 | ||||||
Average recorded investment | 6,000 | 4,125 | 5,188 | 4,140 | ||||||
Interest income recognized | 0 | 0 | 0 | 0 | ||||||
Collateral dependent nonaccrual loans: | Construction and land development | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded investment | 1,935 | 1,935 | 3,128 | |||||||
Unpaid principal balances | [1] | 2,192 | 2,192 | 3,135 | ||||||
Valuation allowance | [2] | 0 | 0 | 0 | ||||||
Average recorded investment | 665 | 7,125 | 592 | 7,293 | ||||||
Interest income recognized | 16 | 41 | 65 | 88 | ||||||
Collateral dependent nonaccrual loans: | Commercial and industrial | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded investment | 6,270 | 6,270 | 6,373 | |||||||
Unpaid principal balances | [1] | 7,270 | 7,270 | 6,407 | ||||||
Valuation allowance | [2] | 0 | 0 | 0 | ||||||
Average recorded investment | 6,341 | 12,107 | 6,356 | 11,928 | ||||||
Interest income recognized | 0 | 0 | 0 | 0 | ||||||
Collateral dependent nonaccrual loans: | Consumer and other | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded investment | 2 | 2 | 0 | |||||||
Unpaid principal balances | [1] | 2 | 2 | 0 | ||||||
Valuation allowance | [2] | 0 | 0 | 0 | ||||||
Average recorded investment | 1 | 383 | 0 | 385 | ||||||
Interest income recognized | 0 | 0 | 0 | 0 | ||||||
Cash flow dependent nonaccrual loans: | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded investment | 7,938 | 7,938 | 12,888 | |||||||
Unpaid principal balances | [1] | 8,705 | 8,705 | 16,843 | ||||||
Valuation allowance | [2] | 1,405 | 1,405 | 1,071 | ||||||
Average recorded investment | 9,715 | 9,419 | 11,236 | 9,409 | ||||||
Interest income recognized | 0 | 0 | 0 | 0 | ||||||
Cash flow dependent nonaccrual loans: | Commercial real estate - mortgage | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded investment | 584 | 584 | 2,613 | |||||||
Unpaid principal balances | [1] | 810 | 810 | 3,349 | ||||||
Valuation allowance | [2] | 38 | 38 | 59 | ||||||
Average recorded investment | 619 | 1,352 | 1,166 | 725 | ||||||
Interest income recognized | 0 | 0 | 0 | 0 | ||||||
Cash flow dependent nonaccrual loans: | Consumer real estate - mortgage | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded investment | 4,025 | 4,025 | 5,193 | |||||||
Unpaid principal balances | [1] | 4,077 | 4,077 | 5,775 | ||||||
Valuation allowance | [2] | 941 | 941 | 688 | ||||||
Average recorded investment | 4,126 | 3,163 | 4,197 | 3,181 | ||||||
Interest income recognized | 0 | 0 | 0 | 0 | ||||||
Cash flow dependent nonaccrual loans: | Construction and land development | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded investment | 1,938 | 1,938 | 3,485 | |||||||
Unpaid principal balances | [1] | 2,384 | 2,384 | 4,154 | ||||||
Valuation allowance | [2] | 22 | 22 | 20 | ||||||
Average recorded investment | 1,928 | 130 | 2,119 | 134 | ||||||
Interest income recognized | 0 | 0 | 0 | 0 | ||||||
Cash flow dependent nonaccrual loans: | Commercial and industrial | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded investment | 938 | 938 | 1,122 | |||||||
Unpaid principal balances | [1] | 936 | 936 | 2,714 | ||||||
Valuation allowance | [2] | 172 | 172 | 77 | ||||||
Average recorded investment | 1,221 | 1,838 | 1,345 | 2,396 | ||||||
Interest income recognized | 0 | 0 | 0 | 0 | ||||||
Cash flow dependent nonaccrual loans: | Consumer and other | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded investment | 453 | 453 | 475 | |||||||
Unpaid principal balances | [1] | 498 | 498 | 851 | ||||||
Valuation allowance | [2] | 232 | 232 | $ 227 | ||||||
Average recorded investment | 1,821 | 2,936 | 2,409 | 2,973 | ||||||
Interest income recognized | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
|
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017
USD ($)
contract
|
Jun. 30, 2016
USD ($)
contract
|
Jun. 30, 2017
USD ($)
contract
|
Jun. 30, 2016
USD ($)
contract
|
|
Troubled debt restructuring categorized by loan classification [Abstract] | ||||
Number of contracts | contract | 1 | 0 | 3 | 1 |
Pre Modification Outstanding Recorded Investment | $ 9 | $ 0 | $ 2,042 | $ 2,321 |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 6 | $ 0 | $ 2,039 | $ 1,536 |
Commercial real estate - mortgage | ||||
Troubled debt restructuring categorized by loan classification [Abstract] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer real estate - mortgage | ||||
Troubled debt restructuring categorized by loan classification [Abstract] | ||||
Number of contracts | contract | 1 | 0 | 1 | 0 |
Pre Modification Outstanding Recorded Investment | $ 9 | $ 0 | $ 9 | $ 0 |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 6 | $ 0 | $ 6 | $ 0 |
Construction and land development | ||||
Troubled debt restructuring categorized by loan classification [Abstract] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial and industrial | ||||
Troubled debt restructuring categorized by loan classification [Abstract] | ||||
Number of contracts | contract | 0 | 0 | 2 | 1 |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 2,033 | $ 2,321 |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 0 | $ 0 | $ 2,033 | $ 1,536 |
Consumer and other | ||||
Troubled debt restructuring categorized by loan classification [Abstract] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan Losses - Industry Classification System (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Lessors of nonresidential buildings | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Principal Balances | $ 2,679,712 | |
Unfunded Commitments | 542,158 | |
Total exposure | 3,221,870 | $ 1,701,853 |
Lessors of residential buildings | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Principal Balances | 879,787 | |
Unfunded Commitments | 289,682 | |
Total exposure | $ 1,169,469 | $ 874,234 |
Loans and Allowance for Loan Losses - Financing Receivables Past Due (Details) - USD ($) |
Jun. 30, 2017 |
Dec. 31, 2016 |
||
---|---|---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | $ 14,758,764,516 | $ 8,449,924,736 | ||
Purchased credit impaired | [1] | 48,501,000 | 31,612,000 | |
Nonaccrual | 19,204,000 | 18,742,000 | ||
Currently performing impaired loans | 10,000,000 | 16,700,000 | ||
Purchased credit impaired, accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Purchased credit impaired | 34,874,000 | 0 | ||
Purchased credit impaired, nonaccruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Purchased credit impaired | 21,012,000 | 8,836,000 | ||
Past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 28,894,000 | 22,330,000 | ||
30-89 days past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 27,203,000 | 21,196,000 | ||
90 days or more past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 1,691,000 | 1,134,000 | ||
Current and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 14,654,781,000 | 8,400,018,000 | ||
Commercial real estate - mortgage | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 6,387,372,000 | 3,193,496,000 | ||
Commercial real estate - mortgage | Owner-occupied | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 2,368,641,000 | 1,354,893,000 | ||
Nonaccrual | 2,249,000 | 2,297,000 | ||
Commercial real estate - mortgage | Owner-occupied | Purchased credit impaired, accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Purchased credit impaired | 6,545,000 | 0 | ||
Commercial real estate - mortgage | Owner-occupied | Purchased credit impaired, nonaccruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Purchased credit impaired | 3,296,000 | 1,956,000 | ||
Commercial real estate - mortgage | Owner-occupied | Past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 3,872,000 | 3,505,000 | ||
Commercial real estate - mortgage | Owner-occupied | 30-89 days past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 3,872,000 | 3,505,000 | ||
Commercial real estate - mortgage | Owner-occupied | 90 days or more past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 0 | 0 | ||
Commercial real estate - mortgage | Owner-occupied | Current and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 2,352,679,000 | 1,347,134,000 | ||
Commercial real estate - mortgage | All other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 4,018,731,000 | 1,838,603,000 | ||
Nonaccrual | 819,000 | 240,000 | ||
Commercial real estate - mortgage | All other | Purchased credit impaired, accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Purchased credit impaired | 11,061,000 | 0 | ||
Commercial real estate - mortgage | All other | Purchased credit impaired, nonaccruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Purchased credit impaired | 3,752,000 | 428,000 | ||
Commercial real estate - mortgage | All other | Past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 1,820,000 | 0 | ||
Commercial real estate - mortgage | All other | 30-89 days past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 1,820,000 | 0 | ||
Commercial real estate - mortgage | All other | 90 days or more past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 0 | 0 | ||
Commercial real estate - mortgage | All other | Current and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 4,001,279,000 | 1,837,936,000 | ||
Consumer real estate - mortgage | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 2,552,927,000 | 1,185,917,000 | ||
Nonaccrual | 8,133,000 | 5,554,000 | ||
Consumer real estate - mortgage | Purchased credit impaired, accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Purchased credit impaired | 9,081,000 | 0 | ||
Consumer real estate - mortgage | Purchased credit impaired, nonaccruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Purchased credit impaired | 10,431,000 | 2,520,000 | ||
Consumer real estate - mortgage | Past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 7,689,000 | 3,891,000 | ||
Consumer real estate - mortgage | 30-89 days past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 7,689,000 | 3,838,000 | ||
Consumer real estate - mortgage | 90 days or more past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 0 | 53,000 | ||
Consumer real estate - mortgage | Current and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 2,517,593,000 | 1,173,953,000 | ||
Construction and land development | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 1,772,799,000 | 912,673,000 | ||
Nonaccrual | 1,121,000 | 3,205,000 | ||
Construction and land development | Purchased credit impaired, accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Purchased credit impaired | 7,628,000 | 0 | ||
Construction and land development | Purchased credit impaired, nonaccruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Purchased credit impaired | 2,751,000 | 3,408,000 | ||
Construction and land development | Past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 6,250,000 | 2,210,000 | ||
Construction and land development | 30-89 days past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 6,250,000 | 2,210,000 | ||
Construction and land development | 90 days or more past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 0 | 0 | ||
Construction and land development | Current and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 1,755,049,000 | 903,850,000 | ||
Commercial and industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 3,688,357,000 | 2,891,710,000 | ||
Nonaccrual | 6,429,000 | 6,971,000 | ||
Commercial and industrial | Purchased credit impaired, accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Purchased credit impaired | 559,000 | 0 | ||
Commercial and industrial | Purchased credit impaired, nonaccruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Purchased credit impaired | 779,000 | 524,000 | ||
Commercial and industrial | Past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 3,952,000 | 4,475,000 | ||
Commercial and industrial | 30-89 days past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 2,880,000 | 4,475,000 | ||
Commercial and industrial | 90 days or more past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 1,072,000 | 0 | ||
Commercial and industrial | Current and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 3,676,638,000 | 2,879,740,000 | ||
Consumer and other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 357,310,000 | 266,129,000 | ||
Nonaccrual | 453,000 | 475,000 | ||
Consumer and other | Purchased credit impaired, accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Purchased credit impaired | 0 | 0 | ||
Consumer and other | Purchased credit impaired, nonaccruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Purchased credit impaired | 3,000 | 0 | ||
Consumer and other | Past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 5,311,000 | 8,249,000 | ||
Consumer and other | 30-89 days past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 4,692,000 | 7,168,000 | ||
Consumer and other | 90 days or more past due and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | 619,000 | 1,081,000 | ||
Consumer and other | Current and accruing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans | $ 351,543,000 | $ 257,405,000 | ||
|
Loans and Allowance for Loan Losses - Allowance Allocation (Details) - USD ($) |
Jun. 30, 2017 |
Dec. 31, 2016 |
|||
---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | $ 61,944,494 | $ 58,980,475 | |||
Troubled debt restructurings performing as of restructure date | 14,200,000 | 15,000,000 | |||
Commercial real estate - mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 16,002,000 | 13,655,000 | |||
Consumer real estate - mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 7,835,000 | 6,564,000 | |||
Construction and land development | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 5,126,000 | 3,624,000 | |||
Commercial and industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 24,235,000 | 24,743,000 | |||
Consumer and other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 7,549,000 | 9,520,000 | |||
Unallocated | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 1,197,000 | 874,000 | |||
Troubled Debt Restructurings | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | [1] | 62,000 | 21,000 | ||
Troubled Debt Restructurings | Commercial real estate - mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | [1] | 1,000 | 1,000 | ||
Troubled Debt Restructurings | Consumer real estate - mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | [1] | 3,000 | 2,000 | ||
Troubled Debt Restructurings | Construction and land development | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | [1] | 0 | 0 | ||
Troubled Debt Restructurings | Commercial and industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | [1] | 58,000 | 18,000 | ||
Troubled Debt Restructurings | Consumer and other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | [1] | 0 | 0 | ||
Troubled Debt Restructurings | Unallocated | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | [1] | 0 | 0 | ||
Accruing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 59,280,000 | 57,014,000 | |||
Accruing | Commercial real estate - mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 15,963,000 | 13,595,000 | |||
Accruing | Consumer real estate - mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 6,891,000 | 5,874,000 | |||
Accruing | Construction and land development | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 5,104,000 | 3,604,000 | |||
Accruing | Commercial and industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 24,005,000 | 24,648,000 | |||
Accruing | Consumer and other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 7,317,000 | 9,293,000 | |||
Accruing | Unallocated | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 0 | 0 | |||
Nonaccruing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 1,405,000 | 1,071,000 | |||
Nonaccruing | Commercial real estate - mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 38,000 | 59,000 | |||
Nonaccruing | Consumer real estate - mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 941,000 | 688,000 | |||
Nonaccruing | Construction and land development | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 22,000 | 20,000 | |||
Nonaccruing | Commercial and industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 172,000 | 77,000 | |||
Nonaccruing | Consumer and other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | 232,000 | 227,000 | |||
Nonaccruing | Unallocated | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Allowance for Loan Losses | $ 0 | $ 0 | |||
|
Loans and Allowance for Loan Losses - Allowance for Credit Losses (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | $ 58,350,000 | $ 62,239,000 | $ 58,980,000 | $ 65,432,000 |
Charged-off loans | (5,157,000) | (7,146,000) | (10,320,665) | (16,372,819) |
Recovery of previously charged-off loans | 1,939,000 | 1,039,000 | 2,822,000 | 3,179,000 |
Provision for loan losses | 6,812,389 | 5,280,101 | 10,463,411 | 9,173,671 |
Ending Balance | 61,944,000 | 61,412,000 | 61,944,000 | 61,412,000 |
Loans acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 0 | |||
Ending Balance | 0 | 0 | ||
Commercial real estate - mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 14,168,000 | 13,551,000 | 13,655,000 | 15,513,000 |
Charged-off loans | (8,000) | (196,000) | (9,000) | (196,000) |
Recovery of previously charged-off loans | 9,000 | 135,000 | 15,000 | 193,000 |
Provision for loan losses | 1,833,000 | 175,000 | 2,341,000 | (1,845,000) |
Ending Balance | 16,002,000 | 13,665,000 | 16,002,000 | 13,665,000 |
Commercial real estate - mortgage | Loans acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 0 | |||
Ending Balance | 0 | 0 | ||
Consumer real estate - mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 7,219,000 | 7,169,000 | 6,564,000 | 7,220,000 |
Charged-off loans | (206,000) | (180,000) | (268,000) | (379,000) |
Recovery of previously charged-off loans | 412,000 | 71,000 | 582,000 | 156,000 |
Provision for loan losses | 410,000 | (520,000) | 957,000 | (457,000) |
Ending Balance | 7,835,000 | 6,540,000 | 7,835,000 | 6,540,000 |
Consumer real estate - mortgage | Loans acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 0 | |||
Ending Balance | 0 | 0 | ||
Construction and land development | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 4,441,000 | 3,942,000 | 3,624,000 | 2,903,000 |
Charged-off loans | 0 | 0 | 0 | 0 |
Recovery of previously charged-off loans | 96,000 | 81,000 | 129,000 | 106,000 |
Provision for loan losses | 589,000 | (100,000) | 1,373,000 | 914,000 |
Ending Balance | 5,126,000 | 3,923,000 | 5,126,000 | 3,923,000 |
Construction and land development | Loans acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 0 | |||
Ending Balance | 0 | 0 | ||
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 22,912,000 | 24,144,000 | 24,743,000 | 23,643,000 |
Charged-off loans | (495,000) | (619,000) | (1,653,000) | (2,243,000) |
Recovery of previously charged-off loans | 560,000 | 182,000 | 702,000 | 1,615,000 |
Provision for loan losses | 1,258,000 | 1,383,000 | 443,000 | 2,075,000 |
Ending Balance | 24,235,000 | 25,090,000 | 24,235,000 | 25,090,000 |
Commercial and industrial | Loans acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 0 | |||
Ending Balance | 0 | 0 | ||
Consumer and other | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 8,477,000 | 11,858,000 | 9,520,000 | 15,616,000 |
Charged-off loans | (4,448,000) | (6,151,000) | (8,391,000) | (13,555,000) |
Recovery of previously charged-off loans | 862,000 | 570,000 | 1,394,000 | 1,109,000 |
Provision for loan losses | 2,658,000 | 4,861,000 | 5,026,000 | 7,968,000 |
Ending Balance | 7,549,000 | 11,138,000 | 7,549,000 | 11,138,000 |
Consumer and other | Loans acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 0 | |||
Ending Balance | 0 | 0 | ||
Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 1,133,000 | 1,575,000 | 874,000 | 537,000 |
Charged-off loans | 0 | 0 | 0 | 0 |
Recovery of previously charged-off loans | 0 | 0 | 0 | 0 |
Provision for loan losses | 64,000 | (519,000) | 323,000 | 519,000 |
Ending Balance | 1,197,000 | $ 1,056,000 | 1,197,000 | $ 1,056,000 |
Unallocated | Loans acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 0 | |||
Ending Balance | $ 0 | $ 0 |
Loans and Allowance for Loan Losses - Details on Allowance for Loan Losses and Recorded Investment by Loan Classification and Impairment Evaluation Method (Details) - USD ($) |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | $ 60,477,000 | $ 57,888,000 | ||||
Individually evaluated for impairment | 1,467,000 | 1,092,000 | ||||
Total allowance for loan losses | 61,944,000 | $ 58,350,000 | 58,980,000 | $ 61,412,000 | $ 62,239,000 | $ 65,432,000 |
Collectively evaluated for impairment | 14,669,426,000 | 8,407,339,000 | ||||
Individually evaluated for impairment | 33,453,000 | 33,750,000 | ||||
Loans | 14,758,764,516 | 8,449,924,736 | ||||
Loans acquired with deteriorated credit quality | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total allowance for loan losses | 0 | 0 | ||||
Loans acquired with deteriorated credit quality | 55,886,000 | 8,836,000 | ||||
Commercial real estate - mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 15,963,000 | 13,595,000 | ||||
Individually evaluated for impairment | 39,000 | 60,000 | ||||
Total allowance for loan losses | 16,002,000 | 14,168,000 | 13,655,000 | 13,665,000 | 13,551,000 | 15,513,000 |
Collectively evaluated for impairment | 6,359,443,000 | 3,188,362,000 | ||||
Individually evaluated for impairment | 3,275,000 | 2,750,000 | ||||
Loans | 6,387,372,000 | 3,193,496,000 | ||||
Commercial real estate - mortgage | Loans acquired with deteriorated credit quality | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total allowance for loan losses | 0 | 0 | ||||
Loans acquired with deteriorated credit quality | 24,654,000 | 2,384,000 | ||||
Consumer real estate - mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 6,891,000 | 5,874,000 | ||||
Individually evaluated for impairment | 944,000 | 690,000 | ||||
Total allowance for loan losses | 7,835,000 | 7,219,000 | 6,564,000 | 6,540,000 | 7,169,000 | 7,220,000 |
Collectively evaluated for impairment | 2,522,372,000 | 1,174,456,000 | ||||
Individually evaluated for impairment | 11,043,000 | 8,941,000 | ||||
Loans | 2,552,927,000 | 1,185,917,000 | ||||
Consumer real estate - mortgage | Loans acquired with deteriorated credit quality | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total allowance for loan losses | 0 | 0 | ||||
Loans acquired with deteriorated credit quality | 19,512,000 | 2,520,000 | ||||
Construction and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 5,104,000 | 3,604,000 | ||||
Individually evaluated for impairment | 22,000 | 20,000 | ||||
Total allowance for loan losses | 5,126,000 | 4,441,000 | 3,624,000 | 3,923,000 | 3,942,000 | 2,903,000 |
Collectively evaluated for impairment | 1,761,298,000 | 906,053,000 | ||||
Individually evaluated for impairment | 1,122,000 | 3,212,000 | ||||
Loans | 1,772,799,000 | 912,673,000 | ||||
Construction and land development | Loans acquired with deteriorated credit quality | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total allowance for loan losses | 0 | 0 | ||||
Loans acquired with deteriorated credit quality | 10,379,000 | 3,408,000 | ||||
Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 24,005,000 | 24,648,000 | ||||
Individually evaluated for impairment | 230,000 | 95,000 | ||||
Total allowance for loan losses | 24,235,000 | 22,912,000 | 24,743,000 | 25,090,000 | 24,144,000 | 23,643,000 |
Collectively evaluated for impairment | 3,669,480,000 | 2,872,855,000 | ||||
Individually evaluated for impairment | 17,536,000 | 18,331,000 | ||||
Loans | 3,688,357,000 | 2,891,710,000 | ||||
Commercial and industrial | Loans acquired with deteriorated credit quality | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total allowance for loan losses | 0 | 0 | ||||
Loans acquired with deteriorated credit quality | 1,341,000 | 524,000 | ||||
Consumer and other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 7,317,000 | 9,293,000 | ||||
Individually evaluated for impairment | 232,000 | 227,000 | ||||
Total allowance for loan losses | 7,549,000 | 8,477,000 | 9,520,000 | 11,138,000 | 11,858,000 | 15,616,000 |
Collectively evaluated for impairment | 356,833,000 | 265,613,000 | ||||
Individually evaluated for impairment | 477,000 | 516,000 | ||||
Loans | 357,310,000 | 266,129,000 | ||||
Consumer and other | Loans acquired with deteriorated credit quality | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total allowance for loan losses | 0 | 0 | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Unallocated | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 1,197,000 | 874,000 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Total allowance for loan losses | 1,197,000 | $ 1,133,000 | 874,000 | $ 1,056,000 | $ 1,575,000 | $ 537,000 |
Unallocated | Loans acquired with deteriorated credit quality | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total allowance for loan losses | $ 0 | $ 0 |
Income Taxes - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $ 1,300,000 | $ 196,000 | $ 1,300,000 | $ 196,000 |
Interest and penalties | $ 3,600 | $ 0 | $ 22,000 | $ 0 |
Effective income tax rate (as percent) | 31.70% | 33.90% | 29.00% | 33.50% |
Federal and State income tax statutory rate (as percent) | 39.23% | |||
Excess tax benefit | $ 789,000 | $ 4,600,000 |
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2017 |
Dec. 31, 2016 |
|
Loss Contingencies [Line Items] | ||
Expiry period of standby letter of credit, maximum | 2 years | |
Accrual for inherent risks associated with commitments | $ 3.1 | $ 1.1 |
Commitments | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | 5,000.0 | |
Standby letter of credit | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | $ 135.8 |
Stock Options and Restricted Shares - Narrative (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017
USD ($)
plan
shares
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2017
USD ($)
plan
shares
|
Jun. 30, 2016
USD ($)
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity incentive plan | plan | 1 | 1 | ||
Stock-based compensation expense | $ | $ 5,200,000 | $ 2,600,000 | $ 8,633,209 | $ 5,244,947 |
CapitalMark | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares acquired in period (in shares) | 0 | |||
Magna or Avenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares acquired in period (in shares) | 0 | |||
BNC Bancorp | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ | $ 1,500,000 | $ 1,500,000 | ||
2014 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for issuances (in shares) | 735,912 | 735,912 | ||
CapitalMark Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares acquired in period (in shares) | 858,000 | |||
BNC Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for issuances (in shares) | 33,000 | 33,000 |
Stock Options and Restricted Shares - Common Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Dec. 31, 2016 |
||||||||||||
Common stock options and stock appreciation rights | |||||||||||||
Number | |||||||||||||
Outstanding, beginning balance (in shares) | 550,490 | ||||||||||||
Granted (in shares) | 0 | ||||||||||||
Exercised (in shares) | [1] | (184,181) | |||||||||||
Forfeited (in shares) | 0 | ||||||||||||
Outstanding, ending balance (in shares) | 366,309 | 550,490 | |||||||||||
Weighted- Average Exercise Price | |||||||||||||
Outstanding, beginning balance (in dollars per share) | $ 20.75 | ||||||||||||
Outstanding, ending balance (in dollars per share) | $ 21.23 | $ 20.75 | |||||||||||
Additional disclosures | |||||||||||||
Options exercisable (in shares) | 366,309 | ||||||||||||
Weighted- average exercise price of options exercisable (in dollars per share) | $ 21.23 | ||||||||||||
Weighted-average contractual remaining term for options outstanding | 3 years 2 months 5 days | 2 years 7 months 10 days | |||||||||||
Weighted-average contractual remaining term for options exercisable | 3 years 2 months 5 days | ||||||||||||
Aggregate intrinsic value | $ 15,228 | [2] | $ 26,728 | [3] | |||||||||
Aggregate intrinsic value of options exercisable | [2] | $ 15,228 | |||||||||||
Quoted closing price of common stock (in dollars per share) | $ 62.80 | $ 69.30 | |||||||||||
Number of awards used in aggregate intrinsic value (in shares) | 366,309 | 550,490 | |||||||||||
Stock swap transaction | |||||||||||||
Number | |||||||||||||
Exercised (in shares) | [4] | (750) | |||||||||||
Stock swap transaction | Common Stock | |||||||||||||
Number | |||||||||||||
Exercised (in shares) | (277) | ||||||||||||
|
Stock Options and Restricted Shares - Unvested Restricted Awards (Details) - Restricted stock |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2017
$ / shares
shares
| ||||
Number | ||||
Unvested, beginning of period (in shares) | 820,539 | |||
Shares awarded (in shares) | 233,340 | |||
Conversion of previously awarded restricted share units to restricted share awards (in shares) | 43,680 | |||
Shares assumed in connection with acquisition of BNC (in shares) | 136,890 | |||
Restrictions lapsed and shares released to associates/directors (in shares) | (212,659) | |||
Shares forfeited (in shares) | (17,765) | [1] | ||
Unvested, end of period (in shares) | 1,004,025 | |||
Grant Date Weighted-Average Cost | ||||
Unvested, beginning of period (in dollars per share) | $ / shares | $ 36.47 | |||
Unvested, end of period (in dollars per share) | $ / shares | $ 50.10 | |||
Shares forfeited due to failure to meet performance targets (in shares) | 0 | |||
|
Stock Options and Restricted Shares - Restricted Shares Awarded (Details) |
6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017
shares
|
[1] | |||||||||||
Time Based Awards | Associates | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares awarded | 82,973 | [2] | ||||||||||
Restrictions Lapsed and shares released to participants | 298 | [2] | ||||||||||
Shares Forfeited by participants | 151 | [3] | ||||||||||
Shares Unvested | 82,524 | |||||||||||
Time Based Awards | Associates | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting Period in years | 3 years | [2] | ||||||||||
Time Based Awards | Associates | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting Period in years | 5 years | [2] | ||||||||||
Time Based Awards | BNC Bancorp | Associates | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares awarded | 136,690 | [4] | ||||||||||
Restrictions Lapsed and shares released to participants | 0 | [4] | ||||||||||
Shares Forfeited by participants | 0 | [3],[4] | ||||||||||
Shares Unvested | 136,690 | [4] | ||||||||||
Time Based Awards | BNC Bancorp | Associates | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting Period in years | 3 years | [4] | ||||||||||
Time Based Awards | BNC Bancorp | Associates | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting Period in years | 5 years | [4] | ||||||||||
Performance Based Awards | Leadership team | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting Period in years | 3 years | [4] | ||||||||||
Shares awarded | 43,680 | [4] | ||||||||||
Restrictions Lapsed and shares released to participants | 0 | [4] | ||||||||||
Shares Forfeited by participants | 0 | [3],[4] | ||||||||||
Shares Unvested | 43,680 | [4] | ||||||||||
Outside Director Awards | Outside directors | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting Period in years | 1 year | [5] | ||||||||||
Shares awarded | 13,677 | [5] | ||||||||||
Restrictions Lapsed and shares released to participants | 2,376 | [5] | ||||||||||
Shares Forfeited by participants | 796 | [3],[5] | ||||||||||
Shares Unvested | 10,505 | [5] | ||||||||||
|
Stock Options and Restricted Shares - Restricted Share Unit Awards Outstanding (Details) |
6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2017
shares
| ||||||||
2017 Restricted granted shares | Tranche 2017 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 3 years | |||||||
2017 Restricted granted shares | Tranche 2018 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 2 years | |||||||
2017 Restricted granted shares | Tranche 2019 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 1 year | |||||||
2017 Restricted granted shares | Named Executive Officers (NEOs) | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded (in shares) | 72,537 | [1] | ||||||
2017 Restricted granted shares | Named Executive Officers (NEOs) | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded (in shares) | 109,339 | [1] | ||||||
2017 Restricted granted shares | Leadership Team other than NEOs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded (in shares) | 24,916 | |||||||
2016 Restricted granted shares | Tranche 2016 (1) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 3 years | |||||||
2016 Restricted granted shares | Tranche 2017 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 2 years | |||||||
2016 Restricted granted shares | Tranche 2018 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 1 year | |||||||
2016 Restricted granted shares | Named Executive Officers (NEOs) | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded (in shares) | 73,474 | [1] | ||||||
2016 Restricted granted shares | Named Executive Officers (NEOs) | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded (in shares) | 110,223 | [1] | ||||||
2016 Restricted granted shares | Leadership Team other than NEOs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded (in shares) | 26,683 | |||||||
2015 Restricted granted shares | Tranche 2015 (1) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 3 years | |||||||
2015 Restricted granted shares | Tranche 2016 (1) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 2 years | |||||||
2015 Restricted granted shares | Tranche 2017 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 1 year | |||||||
2015 Restricted granted shares | Named Executive Officers (NEOs) | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded (in shares) | 58,200 | [1] | ||||||
2015 Restricted granted shares | Named Executive Officers (NEOs) | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded (in shares) | 101,850 | [1] | ||||||
2015 Restricted granted shares | Leadership Team other than NEOs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded (in shares) | 28,378 | |||||||
2014 Restricted granted shares | Tranche 2014 (1) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 5 years | [2] | ||||||
Shares settled into RSAs as of period end (in shares) | 21,856 | [2],[3] | ||||||
2014 Restricted granted shares | Tranche 2014 (2) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 4 years | [2] | ||||||
Shares settled into RSAs as of period end (in shares) | 21,856 | [2],[3] | ||||||
2014 Restricted granted shares | Tranche 2015 (1) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 4 years | [2] | ||||||
Shares settled into RSAs as of period end (in shares) | 21,847 | [2],[3] | ||||||
2014 Restricted granted shares | Tranche 2015 (2) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 3 years | [2] | ||||||
Shares settled into RSAs as of period end (in shares) | 21,847 | [2],[3] | ||||||
2014 Restricted granted shares | Tranche 2016 (1) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 3 years | [2] | ||||||
Shares settled into RSAs as of period end (in shares) | 21,840 | [2],[3] | ||||||
2014 Restricted granted shares | Tranche 2016 (2) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Service period per tranche (in years) | 2 years | [2] | ||||||
Shares settled into RSAs as of period end (in shares) | 21,840 | [2],[3] | ||||||
2014 Restricted granted shares | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded (in shares) | 102,209 | [1],[2] | ||||||
2014 Restricted granted shares | Leadership Team other than NEOs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded (in shares) | 29,087 | [2] | ||||||
2014 Restricted granted shares | Leadership Team other than NEOs | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded (in shares) | 58,404 | [1],[2] | ||||||
|
Derivative Instruments - Non-hedge Derivatives (Details) - Non-hedge derivatives - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivative [Line Items] | ||
Notional Amount | $ 1,381,748 | $ 1,333,144 |
Estimated Fair Value | (121) | (134) |
Pay fixed / receive variable swaps | ||
Derivative [Line Items] | ||
Notional Amount | 690,874 | 666,572 |
Estimated Fair Value | 16,218 | 16,004 |
Pay variable / receive fixed swaps | ||
Derivative [Line Items] | ||
Notional Amount | 690,874 | 666,572 |
Estimated Fair Value | $ (16,339) | $ (16,138) |
Derivative Instruments - Hedge Derivatives (Details) - Hedging derivative - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
||||||
Interest Rate Swap July 2014 - August 2020 | ||||||||
Forward Cash Flow Hedge Relationship [Abstract] | ||||||||
Forecasted Notional Amount | $ 125,000 | $ 125,000 | ||||||
Asset | 0 | 0 | $ 2,704 | |||||
Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | 0 | 1,643 | ||||||
Interest Rate Swap July 2014 - July 2021 | ||||||||
Forward Cash Flow Hedge Relationship [Abstract] | ||||||||
Forecasted Notional Amount | [1] | $ 27,500 | $ 27,500 | |||||
Receive Rate | [1] | 1 month LIBOR | ||||||
Pay Rate (as percent) | [1] | 2.09% | 2.09% | |||||
Lower maturity range date term | Jul. 01, 2014 | |||||||
Higher maturity range date term | Jul. 31, 2021 | |||||||
Asset | [1] | $ 0 | $ 0 | 395 | ||||
Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | [1] | 0 | 240 | |||||
Interest Rate Swap July 2014 - July 2022 | ||||||||
Forward Cash Flow Hedge Relationship [Abstract] | ||||||||
Forecasted Notional Amount | [1] | $ 25,000 | $ 25,000 | |||||
Receive Rate | [1] | 1 month LIBOR | ||||||
Pay Rate (as percent) | [1] | 2.27% | 2.27% | |||||
Lower maturity range date term | Jul. 01, 2014 | |||||||
Higher maturity range date term | Jul. 31, 2022 | |||||||
Asset | [1] | $ 0 | $ 0 | 610 | ||||
Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | [1] | 0 | 371 | |||||
Interest Rate Swap July 2014 - July 2023 | ||||||||
Forward Cash Flow Hedge Relationship [Abstract] | ||||||||
Forecasted Notional Amount | [1] | $ 27,500 | $ 27,500 | |||||
Receive Rate | [1] | 1 month LIBOR | ||||||
Pay Rate (as percent) | [1] | 2.42% | 2.42% | |||||
Lower maturity range date term | Jul. 01, 2014 | |||||||
Higher maturity range date term | Jul. 31, 2023 | |||||||
Asset | [1] | $ 0 | $ 0 | 874 | ||||
Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | [1] | 0 | 531 | |||||
Interest Rate Swap July 2014 - July 2024 | ||||||||
Forward Cash Flow Hedge Relationship [Abstract] | ||||||||
Forecasted Notional Amount | [1] | $ 30,000 | $ 30,000 | |||||
Receive Rate | [1] | 1 month LIBOR | ||||||
Pay Rate (as percent) | [1] | 2.50% | 2.50% | |||||
Lower maturity range date term | Jul. 01, 2014 | |||||||
Higher maturity range date term | Jul. 31, 2024 | |||||||
Asset | [1] | $ 0 | $ 0 | 900 | ||||
Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | [1] | 0 | 547 | |||||
Interest Rate Swap August 2015 - August 2020 | ||||||||
Forward Cash Flow Hedge Relationship [Abstract] | ||||||||
Forecasted Notional Amount | [1] | $ 15,000 | $ 15,000 | |||||
Receive Rate | [1] | 1 month LIBOR | ||||||
Pay Rate (as percent) | [1] | 1.47% | 1.47% | |||||
Lower maturity range date term | Aug. 01, 2015 | |||||||
Higher maturity range date term | Aug. 31, 2020 | |||||||
Liabilities | [1] | $ 0 | $ 0 | (75) | ||||
Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | [1] | 0 | (46) | |||||
Gain contract termination | 3,100 | |||||||
Cash flow hedge | Interest Rate Swap April 2016 - October 2022 | ||||||||
Forward Cash Flow Hedge Relationship [Abstract] | ||||||||
Forecasted Notional Amount | 200,000 | 200,000 | ||||||
Liabilities | (7,222) | (7,222) | (6,732) | |||||
Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | (4,388) | (4,091) | ||||||
Cash flow hedge | Interest Rate Swap April 2016 - April 2020 | ||||||||
Forward Cash Flow Hedge Relationship [Abstract] | ||||||||
Forecasted Notional Amount | $ 33,000 | $ 33,000 | ||||||
Receive Rate | 3 month LIBOR | |||||||
Pay Rate (as percent) | 2.265% | 2.265% | ||||||
Lower maturity range date term | [2] | Apr. 01, 2016 | ||||||
Higher maturity range date term | [2] | Apr. 30, 2020 | ||||||
Liabilities | $ (617) | $ (617) | (727) | |||||
Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | (375) | (442) | ||||||
Cash flow hedge | Interest Rate Swap April 2016 - April 2022 | ||||||||
Forward Cash Flow Hedge Relationship [Abstract] | ||||||||
Forecasted Notional Amount | $ 33,000 | $ 33,000 | ||||||
Receive Rate | 3 month LIBOR | |||||||
Pay Rate (as percent) | 2.646% | 2.646% | ||||||
Lower maturity range date term | [2] | Apr. 01, 2016 | ||||||
Higher maturity range date term | [2] | Apr. 30, 2022 | ||||||
Liabilities | $ (1,286) | $ (1,286) | (1,304) | |||||
Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | (782) | (792) | ||||||
Cash flow hedge | Interest Rate Swap October 2016 - October 2020 | ||||||||
Forward Cash Flow Hedge Relationship [Abstract] | ||||||||
Forecasted Notional Amount | $ 33,000 | $ 33,000 | ||||||
Receive Rate | 3 month LIBOR | |||||||
Pay Rate (as percent) | 2.523% | 2.523% | ||||||
Lower maturity range date term | [2] | Oct. 01, 2016 | ||||||
Higher maturity range date term | [2] | Oct. 31, 2020 | ||||||
Liabilities | $ (970) | $ (970) | (1,081) | |||||
Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | (589) | (657) | ||||||
Cash flow hedge | Interest Rate Swap October 2017 - October 2021 | ||||||||
Forward Cash Flow Hedge Relationship [Abstract] | ||||||||
Forecasted Notional Amount | $ 33,000 | $ 33,000 | ||||||
Receive Rate | 3 month LIBOR | |||||||
Pay Rate (as percent) | 2.992% | 2.992% | ||||||
Lower maturity range date term | [2] | Oct. 01, 2017 | ||||||
Higher maturity range date term | [2] | Oct. 31, 2021 | ||||||
Liabilities | $ (1,412) | $ (1,412) | (1,200) | |||||
Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | (858) | (729) | ||||||
Cash flow hedge | Interest Rate Swap April 2018 - July 2022 | ||||||||
Forward Cash Flow Hedge Relationship [Abstract] | ||||||||
Forecasted Notional Amount | $ 34,000 | $ 34,000 | ||||||
Receive Rate | 3 month LIBOR | |||||||
Pay Rate (as percent) | 3.118% | 3.118% | ||||||
Lower maturity range date term | [2] | Apr. 01, 2018 | ||||||
Higher maturity range date term | [2] | Jul. 31, 2022 | ||||||
Liabilities | $ (1,485) | $ (1,485) | (1,222) | |||||
Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | (902) | (743) | ||||||
Cash flow hedge | Interest Rate Swap July 2018 - October 2022 | ||||||||
Forward Cash Flow Hedge Relationship [Abstract] | ||||||||
Forecasted Notional Amount | $ 34,000 | $ 34,000 | ||||||
Receive Rate | 3 month LIBOR | |||||||
Pay Rate (as percent) | 3.158% | 3.158% | ||||||
Lower maturity range date term | [2] | Jul. 01, 2018 | ||||||
Higher maturity range date term | [2] | Oct. 31, 2022 | ||||||
Liabilities | $ (1,452) | $ (1,452) | (1,198) | |||||
Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | $ (882) | $ (728) | ||||||
|
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Dec. 31, 2016 |
||||||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | |||||||
Valuation allowance | [1] | $ 1,405 | $ 1,071 | ||||
Recurring | |||||||
Assets, Fair Value Disclosure [Abstract] | |||||||
U.S. treasury securities | 251 | 250 | |||||
U.S. government agency securities | 61,900 | 21,769 | |||||
Mortgage-backed securities | 1,539,050 | 976,626 | |||||
State and municipal securities | 533,602 | 212,720 | |||||
Agency-backed securities | 190,220 | 78,580 | |||||
Corporate notes and other | 102,011 | 8,601 | |||||
Total investment securities available-for-sale | 2,427,034 | 1,298,546 | |||||
Other investments | 27,850 | 10,478 | |||||
Other assets | 12,601 | 13,340 | |||||
Total assets at fair value | 2,467,485 | 1,322,364 | |||||
Liabilities at fair value: [Abstract] | |||||||
Other liabilities | 16,190 | 15,758 | |||||
Total liabilities at fair value | 16,190 | 15,758 | |||||
Recurring | Quoted market prices in an active market (Level 1) | |||||||
Assets, Fair Value Disclosure [Abstract] | |||||||
U.S. treasury securities | 0 | 0 | |||||
U.S. government agency securities | 0 | 0 | |||||
Mortgage-backed securities | 0 | 0 | |||||
State and municipal securities | 0 | 0 | |||||
Agency-backed securities | 0 | 0 | |||||
Corporate notes and other | 24,705 | 0 | |||||
Total investment securities available-for-sale | 24,705 | 0 | |||||
Other investments | 0 | 0 | |||||
Other assets | 0 | 0 | |||||
Total assets at fair value | 24,705 | 0 | |||||
Liabilities at fair value: [Abstract] | |||||||
Other liabilities | 0 | 0 | |||||
Total liabilities at fair value | 0 | 0 | |||||
Recurring | Models with significant observable market parameters (Level 2) | |||||||
Assets, Fair Value Disclosure [Abstract] | |||||||
U.S. treasury securities | 251 | 250 | |||||
U.S. government agency securities | 61,900 | 21,769 | |||||
Mortgage-backed securities | 1,539,050 | 976,626 | |||||
State and municipal securities | 533,602 | 212,720 | |||||
Agency-backed securities | 190,220 | 78,580 | |||||
Corporate notes and other | 77,306 | 8,601 | |||||
Total investment securities available-for-sale | 2,402,329 | 1,298,546 | |||||
Other investments | 0 | 0 | |||||
Other assets | 12,601 | 13,340 | |||||
Total assets at fair value | 2,414,930 | 1,311,886 | |||||
Liabilities at fair value: [Abstract] | |||||||
Other liabilities | 16,190 | 15,758 | |||||
Total liabilities at fair value | 16,190 | 15,758 | |||||
Recurring | Models with significant unobservable market parameters (Level 3) | |||||||
Assets, Fair Value Disclosure [Abstract] | |||||||
U.S. treasury securities | 0 | 0 | |||||
U.S. government agency securities | 0 | 0 | |||||
Mortgage-backed securities | 0 | 0 | |||||
State and municipal securities | 0 | 0 | |||||
Agency-backed securities | 0 | 0 | |||||
Corporate notes and other | 0 | 0 | |||||
Total investment securities available-for-sale | 0 | 0 | |||||
Other investments | 27,850 | 10,478 | |||||
Other assets | 0 | 0 | |||||
Total assets at fair value | 27,850 | 10,478 | |||||
Liabilities at fair value: [Abstract] | |||||||
Other liabilities | 0 | 0 | |||||
Total liabilities at fair value | 0 | 0 | |||||
Nonrecurring | |||||||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | |||||||
Other real estate owned | 24,806 | 6,090 | |||||
Nonaccrual loans, net | [2] | 38,811 | 26,506 | ||||
Total | 63,617 | 32,596 | |||||
Total losses on other real estate owned | (66) | (135) | |||||
Total losses on collateral dependent nonaccrual loans, net | [2] | (3,410) | (7,173) | ||||
Total losses for the year-to-date period then ended | (3,476) | (7,308) | |||||
Nonrecurring | Quoted market prices in an active market (Level 1) | |||||||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | |||||||
Other real estate owned | 0 | 0 | |||||
Nonaccrual loans, net | [2] | 0 | 0 | ||||
Total | 0 | 0 | |||||
Nonrecurring | Models with significant observable market parameters (Level 2) | |||||||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | |||||||
Other real estate owned | 0 | 0 | |||||
Nonaccrual loans, net | [2] | 0 | 0 | ||||
Total | 0 | 0 | |||||
Nonrecurring | Models with significant unobservable market parameters (Level 3) | |||||||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | |||||||
Other real estate owned | 24,806 | 6,090 | |||||
Nonaccrual loans, net | [2] | 38,811 | 26,506 | ||||
Total | $ 63,617 | $ 32,596 | |||||
|
Fair Value of Financial Instruments - Rollforward of Balance Sheet Amounts Within Level 3 Valuation Hierarchy (Details) - Recurring - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Other liabilities | ||||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | ||||
Fair value, beginning of period | $ 0 | $ 0 | $ 0 | $ 0 |
Total realized gains included in income | 0 | 0 | 0 | 0 |
Changes in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at June 30 | 0 | 0 | 0 | 0 |
Acquired | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair value, end of period | 0 | 0 | 0 | 0 |
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at June 30 | 0 | 0 | 0 | 0 |
Other assets | ||||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | ||||
Fair value, beginning of period | 10,492 | 10,128 | 10,478 | 9,764 |
Total realized gains included in income | 240 | 159 | 437 | 336 |
Changes in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at June 30 | 0 | 0 | 0 | 0 |
Acquired | 17,062 | 0 | 17,062 | 0 |
Purchases | 649 | 246 | 769 | 571 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (593) | (152) | (896) | (290) |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair value, end of period | 27,850 | 10,381 | 27,850 | 10,381 |
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at June 30 | $ 240 | $ 159 | $ 437 | $ 336 |
Fair Value of Financial Instruments - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) |
Jun. 30, 2017 |
Dec. 31, 2016 |
|||||||
---|---|---|---|---|---|---|---|---|---|
Financial assets: | |||||||||
Securities held-to-maturity | $ 21,322,047 | $ 25,233,254 | |||||||
Quoted market prices in an active market (Level 1) | |||||||||
Financial assets: | |||||||||
Securities held-to-maturity | 0 | 0 | |||||||
Loans, net | 0 | 0 | |||||||
Mortgage loans held-for-sale | 0 | 0 | |||||||
Loans held-for-sale | 0 | ||||||||
Financial liabilities: | |||||||||
Deposits and securities sold under agreements to repurchase | 0 | 0 | |||||||
Federal Home Loan Bank advances | 0 | 0 | |||||||
Subordinated debt and other borrowings | 0 | 0 | |||||||
Off-balance sheet instruments: | |||||||||
Commitments to extend credit | [1] | 0 | 0 | ||||||
Standby letters of credit | [2] | 0 | 0 | ||||||
Models with significant observable market parameters (Level 2) | |||||||||
Financial assets: | |||||||||
Securities held-to-maturity | 21,322,000 | 25,233,000 | |||||||
Loans, net | 0 | 0 | |||||||
Mortgage loans held-for-sale | 90,534,000 | 70,480,000 | |||||||
Loans held-for-sale | 11,546,000 | ||||||||
Financial liabilities: | |||||||||
Deposits and securities sold under agreements to repurchase | 0 | 0 | |||||||
Federal Home Loan Bank advances | 0 | 0 | |||||||
Subordinated debt and other borrowings | 0 | 0 | |||||||
Off-balance sheet instruments: | |||||||||
Commitments to extend credit | [1] | 0 | 0 | ||||||
Standby letters of credit | [2] | 0 | 0 | ||||||
Models with significant unobservable market parameters (Level 3) | |||||||||
Financial assets: | |||||||||
Securities held-to-maturity | 0 | 0 | |||||||
Loans, net | 14,429,187,000 | 8,178,982,000 | |||||||
Mortgage loans held-for-sale | 0 | 0 | |||||||
Loans held-for-sale | 0 | ||||||||
Financial liabilities: | |||||||||
Deposits and securities sold under agreements to repurchase | 15,483,609,000 | 8,579,664,000 | |||||||
Federal Home Loan Bank advances | 725,312,000 | 406,491,000 | |||||||
Subordinated debt and other borrowings | 445,683,000 | 328,049,000 | |||||||
Off-balance sheet instruments: | |||||||||
Commitments to extend credit | [1] | 2,290,000 | 383,000 | ||||||
Standby letters of credit | [2] | 774,000 | 740,000 | ||||||
Carrying/ Notional Amount | |||||||||
Financial assets: | |||||||||
Securities held-to-maturity | 21,163,000 | 25,251,000 | |||||||
Loans, net | 14,696,820,000 | 8,390,944,000 | |||||||
Mortgage loans held-for-sale | 90,275,000 | 70,298,000 | |||||||
Loans held-for-sale | 11,368,000 | ||||||||
Financial liabilities: | |||||||||
Deposits and securities sold under agreements to repurchase | 15,962,483,000 | 8,845,014,000 | |||||||
Federal Home Loan Bank advances | 725,230,000 | 406,304,000 | |||||||
Subordinated debt and other borrowings | 465,419,000 | 350,768,000 | |||||||
Off-balance sheet instruments: | |||||||||
Commitments to extend credit | [1] | 5,021,242,000 | 3,374,269,000 | ||||||
Standby letters of credit | [2] | 135,819,000 | 131,418,000 | ||||||
Estimated Fair Value | |||||||||
Financial assets: | |||||||||
Securities held-to-maturity | [3] | 21,322,000 | 25,233,000 | ||||||
Loans, net | [3] | 14,429,187,000 | 8,178,982,000 | ||||||
Mortgage loans held-for-sale | [3] | 90,534,000 | 70,480,000 | ||||||
Loans held-for-sale | [3] | 11,546,000 | |||||||
Financial liabilities: | |||||||||
Deposits and securities sold under agreements to repurchase | [3] | 15,483,609,000 | 8,579,664,000 | ||||||
Federal Home Loan Bank advances | [3] | 725,312,000 | 406,491,000 | ||||||
Subordinated debt and other borrowings | [3] | 445,683,000 | 328,049,000 | ||||||
Off-balance sheet instruments: | |||||||||
Commitments to extend credit | [1],[3] | 2,290,000 | 383,000 | ||||||
Standby letters of credit | [2],[3] | $ 774,000 | $ 740,000 | ||||||
|
Regulatory Matters (Details) $ / shares in Units, $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2017
USD ($)
$ / shares
| ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Preceding period of retained earnings used in calculation of dividend payable | 2 years | |||
Quarterly common stock dividend (in dollar per share) | $ / shares | $ 0.14 | |||
Pinnacle Financial | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Cash dividends paid to Pinnacle Financial by Pinnacle Bank | $ 15,700 | |||
Actual | ||||
Total capital to risk weighted assets | 2,180,808 | |||
Tier I capital to risk weighted assets | 1,645,173 | |||
Common Equity Tier I capital to risk weighted assets | 1,645,051 | |||
Tier I capital to average assets | $ 1,645,173 | [1] | ||
Actual | ||||
Total capital to risk weighted assets (as percent) | 12.60% | |||
Tier I capital to risk weighted assets (as percent) | 9.50% | |||
Common Equity Tier I capital to risk weighted assets (as percent) | 9.50% | |||
Tier I capital to average assets (as percent) | 14.50% | [1] | ||
Minimum Capital Requirement | ||||
Total capital to risk weighted assets | $ 1,382,821 | |||
Tier I capital to risk weighted assets | 1,037,116 | |||
Common Equity Tier I capital | 777,837 | |||
Tier I capital to average assets | $ 454,114 | [1] | ||
Minimum Capital Requirement | ||||
Total capital to risk weighted assets (as percent) | 8.00% | |||
Tier I capital to risk weighted assets (as percent) | 6.00% | |||
Common Equity Tier I capital to risk weighted assets (as percent) | 4.50% | |||
Tier I capital to average assets (as percent) | 4.00% | [1] | ||
Pinnacle Bank | ||||
Actual | ||||
Total capital to risk weighted assets | $ 2,081,349 | |||
Tier I capital to risk weighted assets | 1,888,732 | |||
Common Equity Tier I capital to risk weighted assets | 1,888,610 | |||
Tier I capital to average assets | $ 1,888,732 | [1] | ||
Actual | ||||
Total capital to risk weighted assets (as percent) | 12.10% | |||
Tier I capital to risk weighted assets (as percent) | 11.00% | |||
Common Equity Tier I capital to risk weighted assets (as percent) | 11.00% | |||
Tier I capital to average assets (as percent) | 16.70% | [1] | ||
Minimum Capital Requirement | ||||
Total capital to risk weighted assets | $ 1,378,433 | |||
Tier I capital to risk weighted assets | 1,033,825 | |||
Common Equity Tier I capital | 775,368 | |||
Tier I capital to average assets | $ 453,095 | [1] | ||
Minimum Capital Requirement | ||||
Total capital to risk weighted assets (as percent) | 8.00% | |||
Tier I capital to risk weighted assets (as percent) | 6.00% | |||
Common Equity Tier I capital to risk weighted assets (as percent) | 4.50% | |||
Tier I capital to average assets (as percent) | 4.00% | [1] | ||
Minimum To Be Well-Capitalized | ||||
Total capital to risk weighted assets | $ 1,723,041 | |||
Tier I capital to risk weighted assets | 1,378,433 | |||
Common Equity Tier I capital to risk weighted assets | 1,119,977 | |||
Tier I capital to average assets | $ 566,368 | [1] | ||
Minimum To Be Well-Capitalized | ||||
Total capital to risk weighted assets (as percent) | 10.00% | |||
Tier I capital to risk weighted assets (as percent) | 8.00% | |||
Common Equity Tier I capital to risk weighted assets (as percent) | 6.50% | |||
Tier I capital to average assets (as percent) | 5.00% | [1] | ||
|
Subordinated Debt and Other borrowings - Narrative (Details) |
6 Months Ended | |
---|---|---|
Jun. 30, 2017
USD ($)
subsidiary
|
Dec. 31, 2016
USD ($)
|
|
Debt Instrument [Line Items] | ||
Number of wholly owned subsidiaries | subsidiary | 12 | |
Term | 30 years | |
Subordinated debt and other borrowings | $ 465,419,408 | $ 350,768,050 |
BNC Bancorp | BNC Subordinated Notes Assumed Due October 2024 | ||
Debt Instrument [Line Items] | ||
Subordinated debt and other borrowings | $ 60,000,000 | |
Issuance date | Sep. 01, 2014 | |
Maturity date | Oct. 31, 2024 | |
Interest rate (as percent) | 5.50% | |
BNC Bancorp | BNC Subordinated Notes Assumed Due October 2024 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, term of variable rate | 3 months | |
Variable rate basis description | Libor + 3.59 | |
Debt instrument, basis spread on variable rate (as percent) | 3.59% | |
BNC Bancorp | BNC Subordinated Notes Assumed Due October 2023 | ||
Debt Instrument [Line Items] | ||
Subordinated debt and other borrowings | $ 10,600,000 | |
Maturity date | Oct. 15, 2023 | |
Interest rate (as percent) | 5.61% | |
Loan face amount | $ 50,500,000 | |
BNC Bancorp | BNC Subordinated Notes Assumed Due October 2023 | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as percent) | 5.50% | |
BNC Bancorp | BNC Subordinated Notes Assumed Due October 2023 | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as percent) | 9.50% | |
BNC Bancorp | BNC Subordinated Notes Assumed Due October 2023 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, term of variable rate | 30 days | |
Variable rate basis description | Libor + 5.00% | |
Debt instrument, basis spread on variable rate (as percent) | 5.00% |
Subordinated Debt and Other borrowings (Details) |
6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017
USD ($)
subsidiary
|
Dec. 31, 2016
USD ($)
|
||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total Debt Outstanding | $ 465,419,408 | $ 350,768,050 | |||||||||||
Debt issuance costs and fair value adjustments | $ (8,136,000) | ||||||||||||
Number of wholly owned subsidiaries | subsidiary | 12 | ||||||||||||
Term | 30 years | ||||||||||||
Revolving credit facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | [1] | Mar. 29, 2016 | |||||||||||
Maturity | [1] | Mar. 27, 2018 | |||||||||||
Total Debt Outstanding | [1] | $ 0 | |||||||||||
Interest Rate (as percent) | [1] | 0.00% | |||||||||||
Maximum borrowing capacity | $ 75,000,000.0 | ||||||||||||
Pinnacle Statutory Trust I | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | Dec. 29, 2003 | ||||||||||||
Maturity | Dec. 30, 2033 | ||||||||||||
Total Debt Outstanding | $ 10,310,000 | ||||||||||||
Interest Rate (as percent) | 3.95% | ||||||||||||
Coupon Structure | 30-day LIBOR + 2.80% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 2.80% | ||||||||||||
Pinnacle Statutory Trust II | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | Sep. 15, 2005 | ||||||||||||
Maturity | Sep. 30, 2035 | ||||||||||||
Total Debt Outstanding | $ 20,619,000 | ||||||||||||
Interest Rate (as percent) | 2.70% | ||||||||||||
Coupon Structure | 30-day LIBOR + 1.40% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 1.40% | ||||||||||||
Pinnacle Statutory Trust III | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | Sep. 07, 2006 | ||||||||||||
Maturity | Sep. 30, 2036 | ||||||||||||
Total Debt Outstanding | $ 20,619,000 | ||||||||||||
Interest Rate (as percent) | 2.95% | ||||||||||||
Coupon Structure | 30-day LIBOR + 1.65% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 1.65% | ||||||||||||
Pinnacle Statutory Trust IV | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | Oct. 31, 2007 | ||||||||||||
Maturity | Sep. 30, 2037 | ||||||||||||
Total Debt Outstanding | $ 30,928,000 | ||||||||||||
Interest Rate (as percent) | 4.10% | ||||||||||||
Coupon Structure | 30-day LIBOR + 2.85% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 2.85% | ||||||||||||
BNC Capital Trust I | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | Apr. 03, 2003 | ||||||||||||
Maturity | Apr. 15, 2033 | ||||||||||||
Total Debt Outstanding | $ 5,155,000 | ||||||||||||
Interest Rate (as percent) | 4.41% | ||||||||||||
Coupon Structure | 30-day LIBOR + 3.25% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 3.25% | ||||||||||||
BNC Capital Trust II | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | Mar. 11, 2004 | ||||||||||||
Maturity | Apr. 07, 2034 | ||||||||||||
Total Debt Outstanding | $ 6,186,000 | ||||||||||||
Interest Rate (as percent) | 4.01% | ||||||||||||
Coupon Structure | 30-day LIBOR + 2.85% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 2.85% | ||||||||||||
BNC Capital Trust III | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | Sep. 23, 2004 | ||||||||||||
Maturity | Sep. 23, 2034 | ||||||||||||
Total Debt Outstanding | $ 5,155,000 | ||||||||||||
Interest Rate (as percent) | 3.56% | ||||||||||||
Coupon Structure | 30-day LIBOR + 2.40% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 2.40% | ||||||||||||
BNC Capital Trust IV | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | Sep. 27, 2006 | ||||||||||||
Maturity | Dec. 31, 2036 | ||||||||||||
Total Debt Outstanding | $ 7,217,000 | ||||||||||||
Interest Rate (as percent) | 3.00% | ||||||||||||
Coupon Structure | 30-day LIBOR + 1.70% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 1.70% | ||||||||||||
Valley Financial Trust I | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | Aug. 05, 2005 | ||||||||||||
Maturity | Sep. 30, 2035 | ||||||||||||
Total Debt Outstanding | $ 4,124,000 | ||||||||||||
Interest Rate (as percent) | 4.25% | ||||||||||||
Coupon Structure | 30-day LIBOR + 3.10% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 3.10% | ||||||||||||
Valley Financial Trust II | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | Jun. 06, 2003 | ||||||||||||
Maturity | Jun. 26, 2033 | ||||||||||||
Total Debt Outstanding | $ 7,217,000 | ||||||||||||
Interest Rate (as percent) | 2.62% | ||||||||||||
Coupon Structure | 30-day LIBOR + 1.49% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 1.49% | ||||||||||||
Valley Financial Trust III | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | Sep. 26, 2005 | ||||||||||||
Maturity | Dec. 15, 2035 | ||||||||||||
Total Debt Outstanding | $ 5,155,000 | ||||||||||||
Interest Rate (as percent) | 2.90% | ||||||||||||
Coupon Structure | 30-day LIBOR + 1.73% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 1.73% | ||||||||||||
Southcoast Capital Trust III | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | Dec. 15, 2006 | ||||||||||||
Maturity | Jan. 30, 2037 | ||||||||||||
Total Debt Outstanding | $ 10,310,000 | ||||||||||||
Interest Rate (as percent) | 2.80% | ||||||||||||
Coupon Structure | 30-day LIBOR + 1.50% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 1.50% | ||||||||||||
Pinnacle Bank Subordinated Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | [2] | Jul. 30, 2015 | |||||||||||
Maturity | [2] | Jul. 30, 2025 | |||||||||||
Total Debt Outstanding | [2] | $ 60,000,000 | |||||||||||
Interest Rate (as percent) | [2] | 4.88% | |||||||||||
Coupon Structure | LIBOR + 3.128% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 3.128% | ||||||||||||
Debt instrument, term of variable rate | 3 months | ||||||||||||
Pinnacle Bank Subordinated Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | [2] | Mar. 10, 2016 | |||||||||||
Maturity | [2] | Jul. 30, 2025 | |||||||||||
Total Debt Outstanding | [2] | $ 70,000,000 | |||||||||||
Interest Rate (as percent) | [2] | 4.88% | |||||||||||
Debt instrument, basis spread on variable rate (as percent) | 3.128% | ||||||||||||
Avenue Subordinated Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | [3] | Dec. 29, 2014 | |||||||||||
Maturity | [3] | Dec. 29, 2024 | |||||||||||
Total Debt Outstanding | [3] | $ 20,000,000 | |||||||||||
Interest Rate (as percent) | [3] | 6.75% | |||||||||||
Coupon Structure | LIBOR + 4.95% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 4.95% | ||||||||||||
Debt instrument, term of variable rate | 3 months | ||||||||||||
Pinnacle Financial Subordinated Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | [4] | Nov. 16, 2016 | |||||||||||
Maturity | [4] | Nov. 16, 2026 | |||||||||||
Total Debt Outstanding | [4] | $ 120,000,000 | |||||||||||
Interest Rate (as percent) | [4] | 5.25% | |||||||||||
Coupon Structure | LIBOR + 3.884% | ||||||||||||
Debt instrument, basis spread on variable rate (as percent) | 3.884% | ||||||||||||
Debt instrument, term of variable rate | 3 months | ||||||||||||
BNC Subordinated Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | Sep. 25, 2014 | ||||||||||||
Maturity | Oct. 01, 2024 | ||||||||||||
Total Debt Outstanding | $ 60,000,000 | ||||||||||||
Interest Rate (as percent) | 5.50% | ||||||||||||
BNC Subordinated Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Date Established | Oct. 15, 2013 | ||||||||||||
Maturity | Oct. 15, 2023 | ||||||||||||
Total Debt Outstanding | $ 10,560,000 | ||||||||||||
Interest Rate (as percent) | 6.04% | ||||||||||||
Coupon Structure | [5] | 30-day LIBOR + 5.00% | |||||||||||
Debt instrument, basis spread on variable rate (as percent) | [5] | 5.00% | |||||||||||
BNC Bancorp | BNC Subordinated Notes Assumed Due October 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maturity | Oct. 15, 2023 | ||||||||||||
Total Debt Outstanding | $ 10,600,000 | ||||||||||||
Interest Rate (as percent) | 5.61% | ||||||||||||
Minimum | BNC Bancorp | BNC Subordinated Notes Assumed Due October 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate (as percent) | 5.50% | ||||||||||||
Maximum | BNC Bancorp | BNC Subordinated Notes Assumed Due October 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate (as percent) | 9.50% | ||||||||||||
|
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