QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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) | ||||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Exchange on which Registered | ||||||
TABLE OF CONTENTS | Page No. | ||||
Item 1. | Part I. Financial Information |
(dollars in thousands, except per share data) | September 30, 2022 | December 31, 2021 | |||||||||
ASSETS | |||||||||||
Cash and noninterest-bearing due from banks | $ | $ | |||||||||
Restricted cash | |||||||||||
Interest-bearing due from banks | |||||||||||
Federal funds sold and other | |||||||||||
Cash and cash equivalents | |||||||||||
Securities purchased with agreement to resell | |||||||||||
Securities available-for-sale, at fair value | |||||||||||
Securities held-to-maturity (fair value of $2.5 billion and $1.2 billion, net of allowance for credit losses of $1.6 million and $161 at Sept. 30, 2022 and Dec. 31, 2021, respectively) | |||||||||||
Consumer loans held-for-sale | |||||||||||
Commercial loans held-for-sale | |||||||||||
Loans | |||||||||||
Less allowance for credit losses | ( | ( | |||||||||
Loans, net | |||||||||||
Premises and equipment, net | |||||||||||
Equity method investment | |||||||||||
Accrued interest receivable | |||||||||||
Goodwill | |||||||||||
Core deposits and other intangible assets | |||||||||||
Other real estate owned | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing | $ | $ | |||||||||
Interest-bearing | |||||||||||
Savings and money market accounts | |||||||||||
Time | |||||||||||
Total deposits | |||||||||||
Securities sold under agreements to repurchase | |||||||||||
Federal Home Loan Bank advances | |||||||||||
Subordinated debt and other borrowings | |||||||||||
Accrued interest payable | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Shareholders' equity: | |||||||||||
Preferred stock, no par value, 10.0 million shares authorized; 225,000 shares non-cumulative perpetual preferred stock, Series B, liquidation preference $225.0 million, issued and outstanding at Sept. 30, 2022 and Dec. 31, 2021, respectively | |||||||||||
Common stock, par value $1.00; 180.0 million shares authorized; 76.4 million and 76.1 million shares issued and outstanding at Sept. 30, 2022 and Dec. 31, 2021, respectively | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss), net of taxes | ( | ||||||||||
Total shareholders' equity | |||||||||||
Total liabilities and shareholders' equity | $ | $ |
(dollars in thousands, except per share data) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Loans, including fees | $ | $ | $ | $ | |||||||||||||||||||
Securities: | |||||||||||||||||||||||
Taxable | |||||||||||||||||||||||
Tax-exempt | |||||||||||||||||||||||
Federal funds sold and other | |||||||||||||||||||||||
Total interest income | |||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
Securities sold under agreements to repurchase | |||||||||||||||||||||||
Federal Home Loan Bank advances and other borrowings | |||||||||||||||||||||||
Total interest expense | |||||||||||||||||||||||
Net interest income | |||||||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Net interest income after provision for credit losses | |||||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||
Service charges on deposit accounts | |||||||||||||||||||||||
Investment services | |||||||||||||||||||||||
Insurance sales commissions | |||||||||||||||||||||||
Gain on mortgage loans sold, net | |||||||||||||||||||||||
Investment gains on sales, net | |||||||||||||||||||||||
Trust fees | |||||||||||||||||||||||
Income from equity method investment | |||||||||||||||||||||||
Other noninterest income | |||||||||||||||||||||||
Total noninterest income | |||||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||
Salaries and employee benefits | |||||||||||||||||||||||
Equipment and occupancy | |||||||||||||||||||||||
Other real estate (income) expense, net | ( | ( | ( | ||||||||||||||||||||
Marketing and other business development | |||||||||||||||||||||||
Postage and supplies | |||||||||||||||||||||||
Amortization of intangibles | |||||||||||||||||||||||
Other noninterest expense | |||||||||||||||||||||||
Total noninterest expense | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | |||||||||||||||||||||||
Preferred stock dividends | ( | ( | ( | ( | |||||||||||||||||||
Net income available to common shareholders | $ | $ | $ | $ | |||||||||||||||||||
Per share information: | |||||||||||||||||||||||
Basic net income per common share | $ | $ | $ | $ | |||||||||||||||||||
Diluted net income per common share | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
(dollars in thousands) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive loss, net of tax: | |||||||||||||||||||||||
Change in fair value on available-for-sale securities, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Change in fair value of cash flow hedges, net of tax | ( | ||||||||||||||||||||||
Accretion of net unrealized gains on securities transferred from available-for-sale to held-to-maturity, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Net gain on cash flow hedges reclassified from other comprehensive income into net income, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Net gain on sale of investment securities reclassified from other comprehensive income into net income, net of tax | ( | ( | ( | ||||||||||||||||||||
Total other comprehensive loss, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Total comprehensive income | $ | $ | $ | $ |
(dollars and shares in thousands) | Preferred Stock Amount | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comp. Income (Loss), net | Total Shareholders' Equity | |||||||||||||||||
Shares | Amounts | ||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Exercise of employee common stock options & related tax benefits | — | — | — | ||||||||||||||||||||
Preferred dividends paid ($16.88 per share) | — | — | — | — | ( | — | ( | ||||||||||||||||
Common dividends paid ($0.18 per share) | — | — | — | — | ( | — | ( | ||||||||||||||||
Issuance of restricted common shares, net of forfeitures | — | ( | — | — | |||||||||||||||||||
Restricted shares withheld for taxes & related tax benefits | — | ( | ( | ( | — | — | ( | ||||||||||||||||
Issuance of common stock pursuant to restricted stock unit (RSU) and performance stock unit (PSU) agreements, net of shares withheld for taxes & related tax benefits | — | ( | — | — | ( | ||||||||||||||||||
Compensation expense for restricted shares & performance stock units | — | — | — | — | — | ||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Exercise of employee common stock options & related tax benefits | — | — | — | ||||||||||||||||||||
Preferred dividends paid ($16.88 per share) | — | — | — | — | ( | — | ( | ||||||||||||||||
Common dividends paid ($0.18 per share) | — | — | — | — | ( | — | ( | ||||||||||||||||
Issuance of restricted common shares, net of forfeitures | — | ( | — | — | |||||||||||||||||||
Restricted shares withheld for taxes & related tax benefits | — | ( | ( | ( | — | — | ( | ||||||||||||||||
Issuance of common stock pursuant to restricted stock unit agreement, net of shares withheld for taxes & related tax benefits | — | ( | — | — | ( | ||||||||||||||||||
Compensation expense for restricted shares & performance stock units | — | — | — | — | — | ||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Exercise of employee stock options & related tax benefits | — | — | — | ||||||||||||||||||||
Preferred dividends paid ($16.88 per share) | — | — | — | — | ( | — | ( | ||||||||||||||||
Common dividends paid ($0.18 per share) | — | — | — | — | ( | — | ( | ||||||||||||||||
Issuance of restricted common shares, net of forfeitures | — | ( | — | — | |||||||||||||||||||
Restricted shares withheld for taxes & related tax benefits | — | ( | ( | ( | — | — | ( | ||||||||||||||||
Issuance of common stock pursuant to restricted stock unit agreement, net of shares withheld for taxes & related tax benefits | — | ( | — | — | ( | ||||||||||||||||||
Compensation expense for restricted shares & performance stock units | — | — | — | — | — | ||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||
Balance at September 30, 2021 | $ | $ | $ | $ | $ | $ |
Preferred Stock Amount | Common Stock | Accumulated Other Comp. Income (Loss), net | Total Shareholders' Equity | ||||||||||||||||||||
Shares | Amounts | Additional Paid-in Capital | Retained Earnings | ||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Exercise of employee common stock options & related tax benefits | — | — | — | ||||||||||||||||||||
Preferred dividends paid ($16.88 per share) | — | — | — | — | ( | — | ( | ||||||||||||||||
Common dividends paid ($0.22 per share) | — | — | — | — | ( | — | ( | ||||||||||||||||
Issuance of restricted common shares, net of forfeitures | — | ( | — | — | |||||||||||||||||||
Restricted shares withheld for taxes & related tax benefits | — | ( | ( | ( | — | — | ( | ||||||||||||||||
Issuance of common stock pursuant to RSU and PSU agreements, net of shares withheld for taxes & related tax benefits | — | ( | — | — | ( | ||||||||||||||||||
Compensation expense for restricted shares & performance stock units | — | — | — | — | — | ||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||
Exercise of employee common stock options & related tax benefits | — | — | — | ||||||||||||||||||||
Preferred dividends paid ($16.88 per share) | — | — | — | — | ( | — | ( | ||||||||||||||||
Common dividends paid ($0.22 per share) | — | — | — | — | ( | — | ( | ||||||||||||||||
Issuance of restricted common shares, net of forfeitures | — | ( | — | — | |||||||||||||||||||
Restricted shares withheld for taxes & related tax benefits | — | ( | ( | ( | — | — | ( | ||||||||||||||||
Issuance of common stock pursuant to restricted stock unit agreement, net of shares withheld for taxes & related tax benefits | — | — | — | ||||||||||||||||||||
Compensation expense for restricted shares & performance stock units | — | — | — | — | — | ||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive loss | — | — | ( | ( | |||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||
Exercise of employee stock options & related tax benefits | — | ( | — | — | ( | ||||||||||||||||||
Preferred dividends paid ($16.88 per share) | — | — | — | — | ( | — | ( | ||||||||||||||||
Common dividends paid ($0.22 per share) | — | — | — | — | ( | — | ( | ||||||||||||||||
Issuance of restricted common shares, net of forfeitures | — | ( | — | — | |||||||||||||||||||
Restricted shares withheld for taxes & related tax benefits | ( | ( | ( | — | — | ( | |||||||||||||||||
Issuance of common stock pursuant to restricted stock unit agreement, net of shares withheld for taxes & related tax benefits | — | — | — | ||||||||||||||||||||
Compensation expense for restricted shares & performance stock units | — | — | — | — | — | ||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | $ | ( | $ |
(dollars in thousands) | Nine months ended September 30, | ||||||||||
2022 | 2021 | ||||||||||
Operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Net amortization/accretion of premium/discount on securities | |||||||||||
Depreciation, amortization and accretion | |||||||||||
Provision for credit losses | |||||||||||
Gain on mortgage loans sold, net | ( | ( | |||||||||
Investment gains on sales, net | ( | ( | |||||||||
Gain on other equity investments, net | ( | ( | |||||||||
Stock-based compensation expense | |||||||||||
Deferred tax expense | |||||||||||
Gains on dispositions of other real estate and other investments | ( | ( | |||||||||
Gain on remeasurement of previously held noncontrolling interest | ( | ||||||||||
Income from equity method investment | ( | ( | |||||||||
Dividends received from equity method investment | |||||||||||
Excess tax benefit from stock compensation | ( | ( | |||||||||
Gain on commercial loans sold, net | ( | ( | |||||||||
Commercial loans held for sale originated | ( | ( | |||||||||
Commercial loans held for sale sold | |||||||||||
Consumer loans held for sale originated | ( | ( | |||||||||
Consumer loans held for sale sold | |||||||||||
Decrease (increase) in other assets | ( | ||||||||||
Increase (decrease) in other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Investing activities: | |||||||||||
Activities in securities available-for-sale: | |||||||||||
Purchases | ( | ( | |||||||||
Sales | |||||||||||
Maturities, prepayments and calls | |||||||||||
Activities in securities held-to-maturity: | |||||||||||
Purchases | ( | ( | |||||||||
Maturities, prepayments and calls | |||||||||||
Net decrease (increase) in securities purchased under agreements to resell | ( | ||||||||||
Increase in loans, net | ( | ( | |||||||||
Purchases of software, premises and equipment | ( | ( | |||||||||
Proceeds from sales of software, premises and equipment | |||||||||||
Proceeds from sale of other real estate | |||||||||||
Purchase of bank owned life insurance policies | ( | ||||||||||
Proceeds from bank owned life insurance settlements | |||||||||||
Proceeds from derivative instruments | |||||||||||
Proceeds from sale (purchase) of FHLB stock, net | ( | ||||||||||
Acquisition, net of cash acquired | ( | ||||||||||
Increase in other investments | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing activities: | |||||||||||
Net increase in deposits | |||||||||||
Net increase in securities sold under agreements to repurchase | |||||||||||
Federal Home Loan Bank: Advances | |||||||||||
Federal Home Loan Bank: Repayments/maturities | ( | ( | |||||||||
Repayments of other borrowings | ( | ( | |||||||||
Principal payments of finance lease obligation | ( | ( | |||||||||
Issuance of common stock pursuant to RSU and PSU agreements, net of shares withheld for taxes | ( | ( | |||||||||
Exercise of common stock options, net of shares surrendered for taxes | ( | ( | |||||||||
Common stock dividends paid | ( | ( | |||||||||
Preferred stock dividends paid | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Net decrease in cash, cash equivalents, and restricted cash | ( | ( | |||||||||
Cash, cash equivalents, and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | $ |
For the nine months ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash Transactions: | |||||||||||
Interest paid | $ | $ | |||||||||
Income taxes paid, net | |||||||||||
Operating lease payments | |||||||||||
Noncash Transactions: | |||||||||||
Loans charged-off to the allowance for credit losses | |||||||||||
Loans foreclosed upon and transferred to other real estate owned | |||||||||||
Available-for-sale securities transferred to held-to-maturity portfolio | |||||||||||
Right-of-use asset recognized during the period in exchange for lease obligations |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Basic net income per common share calculation: | |||||||||||||||||
Numerator - Net income available to common shareholders | $ | $ | $ | $ | |||||||||||||
Denominator - Weighted average common shares outstanding | |||||||||||||||||
Basic net income per common share | $ | $ | $ | $ | |||||||||||||
Diluted net income per common share calculation: | |||||||||||||||||
Numerator - Net income available to common shareholders | $ | $ | $ | $ | |||||||||||||
Denominator - Weighted average common shares outstanding | |||||||||||||||||
Dilutive common shares contingently issuable | |||||||||||||||||
Weighted average diluted common shares outstanding | |||||||||||||||||
Diluted net income per common share | $ | $ | $ | $ |
As of | |||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||
Assets | $ | $ | |||||||||
Liabilities | |||||||||||
Equity interests | |||||||||||
Total liabilities and equity | $ | $ |
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues | $ | $ | $ | $ | |||||||||||||||||||
Net income | $ | $ | $ | $ |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
September 30, 2022: | |||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | |||||||||||||||||||
U.S. Government agency securities | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Corporate notes and other | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | |||||||||||||||||||
U.S. Government agency securities | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Corporate notes and other | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Allowance for credit losses - securities held-to-maturity | ( | ||||||||||||||||||||||
Securities held-to-maturity, net of allowance for credit losses | $ |
December 31, 2021: | |||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | |||||||||||||||||||
U.S. Government agency securities | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Corporate notes and other | |||||||||||||||||||||||
$ | $ | $ | |||||||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||
U.S. Government agency securities | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Allowance for credit losses - securities held-to-maturity | ( | ||||||||||||||||||||||
Securities held-to-maturity, net of allowance for credit losses | $ |
Available-for-sale | Held-to-maturity | ||||||||||||||||||||||
September 30, 2022: | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
Due in one year or less | $ | $ | $ | $ | |||||||||||||||||||
Due in one year to five years | |||||||||||||||||||||||
Due in five years to ten years | |||||||||||||||||||||||
Due after ten years | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
$ | $ | $ | $ |
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 September 30, 2022 | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.S. Government agency securities | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||||||||||||||
Corporate notes | |||||||||||||||||||||||||||||||||||
Total temporarily-impaired securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
At December 31, 2021 | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.S. Government agency securities | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||||||||||||||
Corporate notes | |||||||||||||||||||||||||||||||||||
Total temporarily-impaired securities | $ | $ | $ | $ | $ | $ |
September 30, 2022 | December 31, 2021 | |||||||||||||
Commercial real estate: | ||||||||||||||
Owner occupied | $ | $ | ||||||||||||
Non-owner occupied | ||||||||||||||
Consumer real estate – mortgage | ||||||||||||||
Construction and land development | ||||||||||||||
Commercial and industrial | ||||||||||||||
Consumer and other | ||||||||||||||
Subtotal | $ | $ | ||||||||||||
Allowance for credit losses | ( | ( | ||||||||||||
Loans, net | $ | $ | ||||||||||||
September 30, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Total | ||||||||||||||||||
Commercial real estate - Owner occupied | ||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||
Substandard (1) | ||||||||||||||||||||||||||
Substandard-nonaccrual | ||||||||||||||||||||||||||
Doubtful-nonaccrual | ||||||||||||||||||||||||||
Total Commercial real estate - owner occupied | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Commercial real estate - Non-owner occupied | ||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||
Substandard (1) | ||||||||||||||||||||||||||
Substandard-nonaccrual | ||||||||||||||||||||||||||
Doubtful-nonaccrual | ||||||||||||||||||||||||||
Total Commercial real estate - Non-owner occupied | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Consumer real estate – mortgage | ||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||
Substandard (1) | ||||||||||||||||||||||||||
Substandard-nonaccrual | ||||||||||||||||||||||||||
Doubtful-nonaccrual | ||||||||||||||||||||||||||
Total Consumer real estate – mortgage | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Construction and land development | ||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||
Substandard (1) | ||||||||||||||||||||||||||
Substandard-nonaccrual | ||||||||||||||||||||||||||
Doubtful-nonaccrual | ||||||||||||||||||||||||||
Total Construction and land development | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||
Substandard (1) | ||||||||||||||||||||||||||
Substandard-nonaccrual | ||||||||||||||||||||||||||
Doubtful-nonaccrual | ||||||||||||||||||||||||||
Total Commercial and industrial | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Consumer and other | ||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||
Substandard (1) | ||||||||||||||||||||||||||
Substandard-nonaccrual | ||||||||||||||||||||||||||
Doubtful-nonaccrual | ||||||||||||||||||||||||||
Total Consumer and other | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total loans | ||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||
Substandard (1) | ||||||||||||||||||||||||||
Substandard-nonaccrual | ||||||||||||||||||||||||||
Doubtful-nonaccrual | ||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ |
September 30, 2022 | 30-59 days past due | 60-89 days past due | 90 days or more past due | Total past due | Current | Total loans | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Owner occupied | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Non-owner occupied | |||||||||||||||||||||||||||||||||||
Consumer real estate – mortgage | |||||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Owner occupied | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Non-owner occupied | |||||||||||||||||||||||||||||||||||
Consumer real estate – mortgage | |||||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial real estate - Owner occupied | Commercial real estate - Non-owner occupied | Consumer real estate - mortgage | Construction and land development | Commercial and industrial | Consumer and other | Total | |||||||||||||||||
Three months ended September 30, 2022: | |||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Charged-off loans | ( | ( | ( | ( | ( | ( | |||||||||||||||||
Recovery of previously charged-off loans | |||||||||||||||||||||||
Provision for credit losses on loans | ( | ( | ( | ||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Three months ended September 30, 2021: | |||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Charged-off loans | ( | ( | ( | ( | ( | ( | |||||||||||||||||
Recovery of previously charged-off loans | |||||||||||||||||||||||
Provision for credit losses on loans | ( | ( | ( | ||||||||||||||||||||
Balance at September 30, 2021 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Commercial real estate - Owner occupied | Commercial real estate - Non-owner occupied | Consumer real estate - mortgage | Construction and land development | Commercial and industrial | Consumer and other | Total | |||||||||||||||||
Nine months ended September 30, 2022: | |||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Charged-off loans | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||
Recovery of previously charged-off loans | |||||||||||||||||||||||
Provision for credit losses on loans | ( | ( | |||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Nine months ended September 30, 2021: | |||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Charged-off loans | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||
Recovery of previously charged-off loans | |||||||||||||||||||||||
Provision for credit losses on loans | ( | ( | ( | ( | |||||||||||||||||||
Balance at September 30, 2021 | $ | $ | $ | $ | $ | $ | $ |
Real Estate | Business Assets | Other | Total | |||||||||||
September 30, 2022 | ||||||||||||||
Commercial real estate: | ||||||||||||||
Owner occupied | $ | $ | $ | $ | ||||||||||
Non-owner occupied | ||||||||||||||
Consumer real estate – mortgage | ||||||||||||||
Construction and land development | ||||||||||||||
Commercial and industrial | ||||||||||||||
Consumer and other | ||||||||||||||
Total | $ | $ | $ | $ | ||||||||||
December 31, 2021 | ||||||||||||||
Commercial real estate: | ||||||||||||||
Owner occupied | $ | $ | $ | $ | ||||||||||
Non-owner occupied | ||||||||||||||
Consumer real estate – mortgage | ||||||||||||||
Construction and land development | ||||||||||||||
Commercial and industrial | ||||||||||||||
Consumer and other | ||||||||||||||
Total | $ | $ | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Total nonaccrual loans | Nonaccrual loans with no allowance for credit losses | Loans past due 90 or more days and still accruing | Total nonaccrual loans | Nonaccrual loans with no allowance for credit losses | Loans past due 90 or more days and still accruing | ||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Owner occupied | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Non-owner occupied | |||||||||||||||||||||||||||||||||||
Consumer real estate – mortgage | |||||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
September 30, 2022 | |||||||||||||||||||||||
Outstanding Principal Balances | Unfunded Commitments | Total exposure | Total Exposure at December 31, 2021 | ||||||||||||||||||||
Lessors of nonresidential buildings | $ | $ | $ | $ | |||||||||||||||||||
Lessors of residential buildings | |||||||||||||||||||||||
New housing for-sale builders |
Number | Weighted-Average Exercise Price | Weighted-Average Contractual Remaining Term (in years) | Aggregate Intrinsic Value (000's) | ||||||||||||||
Outstanding at December 31, 2021 | $ | $ | (1) | ||||||||||||||
Granted | |||||||||||||||||
Exercised | ( | ||||||||||||||||
Forfeited | |||||||||||||||||
Outstanding at September 30, 2022 | $ | $ | (2) | ||||||||||||||
Options exercisable at September 30, 2022 | $ | $ | (2) |
Number | Grant Date Weighted-Average Cost | ||||||||||
Unvested at December 31, 2021 | $ | ||||||||||
Shares awarded | |||||||||||
Restrictions lapsed and shares released to associates/directors | ( | ||||||||||
Shares forfeited | ( | ||||||||||
Unvested at September 30, 2022 | $ |
Grant year | Group (1) | Vesting period in years | Shares awarded | Restrictions lapsed and shares released to participants | Shares withheld for taxes by participants | Shares forfeited by participants (4) | Shares unvested | ||||||||||||||||||||||
Time Based Awards | |||||||||||||||||||||||||||||
2022 | Associates (2) | ||||||||||||||||||||||||||||
Outside Director Awards (3) | |||||||||||||||||||||||||||||
2022 | Outside directors |
Number | Grant Date Weighted-Average Cost | ||||||||||
Unvested at December 31, 2021 | $ | ||||||||||
Shares awarded | |||||||||||
Restrictions lapsed and shares released to associates/directors | ( | ||||||||||
Shares forfeited | ( | ||||||||||
Unvested at September 30, 2022 | $ |
Grant year | Vesting period in years | Shares awarded | Restrictions lapsed and shares released to participants | Shares withheld for taxes by participants | Shares forfeited by participants (1) | Shares unvested | ||||||||||||||
2022 |
Units Awarded | ||||||||||||||||||||||||||
Grant year | 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) | Period in which units to be settled into shares of common stock(2) | ||||||||||||||||||||
2022 | — | 2022-2024 | 2025 | |||||||||||||||||||||||
2022 | — | 2022-2024 | 2026 | |||||||||||||||||||||||
2021 | — | 2021-2023 | 2024 | |||||||||||||||||||||||
2020 | — | 2020 | 2025 | |||||||||||||||||||||||
2021 | 2025 | |||||||||||||||||||||||||
2022 | 2025 | |||||||||||||||||||||||||
2019 | — | 2019 | 2024 | |||||||||||||||||||||||
2020 | 2024 | |||||||||||||||||||||||||
2021 | 2024 | |||||||||||||||||||||||||
2018 | — | 2018 | 2023 | |||||||||||||||||||||||
2019 | 2023 | |||||||||||||||||||||||||
2020 | 2023 |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Notional Amount | Estimated Fair Value | Notional Amount | Estimated Fair Value | |||||||||||||||||||||||
Interest rate swap agreements: | ||||||||||||||||||||||||||
Assets | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities | ( | ( | ||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( |
Amount of Gain (Loss) Recognized in Income | |||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in Income | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
Interest rate swap agreements | Other noninterest income | $ | ( | $ | $ | $ |
Amount of Loss Recognized in Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Asset derivatives | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Interest rate floor - loans | $ | $ | $ | $ | ( | ||||||||||||||||||
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | Weighted Average Remaining Maturity (In Years) | Weighted Average Pay Rate | Receive Rate | Notional Amount | Estimated Fair Value | Notional Amount | Estimated Fair Value | |||||||||||||||||||||||||||||||||||||||||||
Asset derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps - securities | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Liability derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps - securities | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Location of Gain (Loss) | Amount of Gain (Loss) Recognized in Income | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
Interest rate swaps - securities | Interest income on securities | $ | $ | $ | $ | ||||||||||||||||||||||||
Securities available-for-sale | Interest income on securities | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||
Carrying Amount of the Hedged Assets | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets | ||||||||||||||||||||||
September 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||||||||||||||||
Line item on the balance sheet | |||||||||||||||||||||||
Securities available-for-sale | $ | $ | $ | ( | $ |
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) | ||||||||||||||||||||
September 30, 2022 | |||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | |||||||||||||||||||
U.S. Government agency securities | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||
Agency-backed securities | |||||||||||||||||||||||
Corporate notes and other | |||||||||||||||||||||||
Total investment securities available-for-sale | |||||||||||||||||||||||
Other investments | |||||||||||||||||||||||
Other assets | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
Other liabilities | $ | $ | $ | $ | |||||||||||||||||||
Total liabilities at fair value | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | |||||||||||||||||||
U.S. Government agency securities | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||
Agency-backed securities | |||||||||||||||||||||||
Corporate notes and other | |||||||||||||||||||||||
Total investment securities available-for-sale | |||||||||||||||||||||||
Other investments | |||||||||||||||||||||||
Other assets | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
Other liabilities | $ | $ | $ | $ | |||||||||||||||||||
Total liabilities at fair value | $ | $ | $ | $ |
September 30, 2022 | 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) | |||||||||||||||||||
Other real estate owned | $ | $ | $ | $ | |||||||||||||||||||
Collateral dependent loans (1) | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Other real estate owned | $ | $ | $ | $ | |||||||||||||||||||
Collateral dependent loans (1) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
For the Three months ended September 30, | For the Nine months ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
Available-for-sale Securities | Other investments | Available-for-sale Securities | Other investments | Available-for-sale Securities | Other investments | Available-for-sale Securities | Other investments | ||||||||||||||||||||||
Fair value, beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Total realized gains included in income | |||||||||||||||||||||||||||||
Changes in unrealized gains/losses included in other comprehensive income | ( | ( | ( | ||||||||||||||||||||||||||
Purchases | |||||||||||||||||||||||||||||
Issuances | |||||||||||||||||||||||||||||
Settlements | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||
Transfers out of Level 3 | |||||||||||||||||||||||||||||
Fair value, end of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Total realized gains included in income | $ | $ | $ | $ | $ | $ | $ | $ |
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) | |||||||||||||||||||||||||
September 30, 2022 | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Securities purchased with agreement to resell | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Securities held-to-maturity | |||||||||||||||||||||||||||||
Loans, net | |||||||||||||||||||||||||||||
Consumer loans held-for-sale | |||||||||||||||||||||||||||||
Commercial loans held-for-sale | |||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Deposits and securities sold under | |||||||||||||||||||||||||||||
agreements to repurchase | |||||||||||||||||||||||||||||
Federal Home Loan Bank advances | |||||||||||||||||||||||||||||
Subordinated debt and other borrowings | |||||||||||||||||||||||||||||
Off-balance sheet instruments: | |||||||||||||||||||||||||||||
Commitments to extend credit (2) | |||||||||||||||||||||||||||||
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) | |||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Securities purchased with agreement to resell | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Securities held-to-maturity | |||||||||||||||||||||||||||||
Loans, net | |||||||||||||||||||||||||||||
Consumer loans held-for-sale | |||||||||||||||||||||||||||||
Commercial loans held-for-sale | |||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Deposits and securities sold under | |||||||||||||||||||||||||||||
agreements to repurchase | |||||||||||||||||||||||||||||
Federal Home Loan Bank advances | |||||||||||||||||||||||||||||
Subordinated debt and other borrowings | |||||||||||||||||||||||||||||
Off-balance sheet instruments: | |||||||||||||||||||||||||||||
Commitments to extend credit (2) | |||||||||||||||||||||||||||||
Actual | Minimum Capital Requirement | Minimum To Be Well-Capitalized | ||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
At September 30, 2022 | ||||||||||||||||||||||||||
Total capital to risk weighted assets: | ||||||||||||||||||||||||||
Pinnacle Financial | $ | % | $ | % | $ | % | ||||||||||||||||||||
Pinnacle Bank | $ | % | $ | % | $ | % | ||||||||||||||||||||
Tier 1 capital to risk weighted assets: | ||||||||||||||||||||||||||
Pinnacle Financial | $ | % | $ | % | $ | % | ||||||||||||||||||||
Pinnacle Bank | $ | % | $ | % | $ | % | ||||||||||||||||||||
Common equity Tier 1 capital to risk weighted assets | ||||||||||||||||||||||||||
Pinnacle Financial | $ | % | $ | % | NA | NA | ||||||||||||||||||||
Pinnacle Bank | $ | % | $ | % | $ | % | ||||||||||||||||||||
Tier 1 capital to average assets (*): | ||||||||||||||||||||||||||
Pinnacle Financial | $ | % | $ | % | NA | NA | ||||||||||||||||||||
Pinnacle Bank | $ | % | $ | % | $ | % | ||||||||||||||||||||
At December 31, 2021 | ||||||||||||||||||||||||||
Total capital to risk weighted assets: | ||||||||||||||||||||||||||
Pinnacle Financial | $ | % | $ | % | $ | % | ||||||||||||||||||||
Pinnacle Bank | $ | % | $ | % | $ | % | ||||||||||||||||||||
Tier 1 capital to risk weighted assets: | ||||||||||||||||||||||||||
Pinnacle Financial | $ | % | $ | % | $ | % | ||||||||||||||||||||
Pinnacle Bank | $ | % | $ | % | $ | % | ||||||||||||||||||||
Common equity Tier 1 capital to risk weighted assets | ||||||||||||||||||||||||||
Pinnacle Financial | $ | % | $ | % | NA | NA | ||||||||||||||||||||
Pinnacle Bank | $ | % | $ | % | $ | % | ||||||||||||||||||||
Tier 1 capital to average assets (*): | ||||||||||||||||||||||||||
Pinnacle Financial | $ | % | $ | % | NA | NA | ||||||||||||||||||||
Pinnacle Bank | $ | % | $ | % | $ | % |
Name | Date Established | Maturity | Total Debt Outstanding | Interest Rate at September 30, 2022 | Coupon Structure | ||||||||||||
Trust preferred securities | |||||||||||||||||
Pinnacle Statutory Trust I | $ | % | |||||||||||||||
Pinnacle Statutory Trust II | % | ||||||||||||||||
Pinnacle Statutory Trust III | % | ||||||||||||||||
Pinnacle Statutory Trust IV | % | ||||||||||||||||
BNC Capital Trust I | % | ||||||||||||||||
BNC Capital Trust II | % | ||||||||||||||||
BNC Capital Trust III | % | ||||||||||||||||
BNC Capital Trust IV | % | ||||||||||||||||
Valley Financial Trust I | % | ||||||||||||||||
Valley Financial Trust II | % | ||||||||||||||||
Valley Financial Trust III | % | ||||||||||||||||
Southcoast Capital Trust III | % | ||||||||||||||||
Subordinated Debt | |||||||||||||||||
Pinnacle Financial Subordinated Notes | % | Fixed (2) | |||||||||||||||
Debt issuance costs and fair value adjustments | ( | ||||||||||||||||
Total subordinated debt and other borrowings | $ |
Three Months Ended September 30, | 2022 - 2021 Percent | Nine Months Ended September 30, | 2022 - 2021 Percent | |||||||||||||||||
2022 | 2021 | Increase (Decrease) | 2022 | 2021 | Increase (Decrease) | |||||||||||||||
Income Statement: | ||||||||||||||||||||
Interest income | $ | 371,764 | $ | 260,868 | 42.5 | % | $ | 922,757 | $ | 772,021 | 19.5 | % | ||||||||
Interest expense | 65,980 | 23,325 | >100 % | 112,924 | 78,383 | 44.1 | % | |||||||||||||
Net interest income | 305,784 | 237,543 | 28.7 | % | 809,833 | 693,638 | 16.8 | % | ||||||||||||
Provision for credit losses | 27,493 | 3,382 | >100 % | 43,120 | 13,451 | >100 % | ||||||||||||||
Net interest income after provision for credit losses | 278,291 | 234,161 | 18.8 | % | 766,713 | 680,187 | 12.7 | % | ||||||||||||
Noninterest income | 104,805 | 104,095 | 0.7 | % | 333,803 | 295,011 | 13.1 | % | ||||||||||||
Noninterest expense | 199,253 | 168,851 | 18.0 | % | 577,952 | 489,687 | 18.0 | % | ||||||||||||
Net income before income taxes | 183,843 | 169,405 | 8.5 | % | 522,564 | 485,511 | 7.6 | % | ||||||||||||
Income tax expense | 35,185 | 32,828 | 7.2 | % | 99,669 | 91,716 | 8.7 | % | ||||||||||||
Net income | 148,658 | 136,577 | 8.8 | % | 422,895 | 393,795 | 7.4 | % | ||||||||||||
Preferred stock dividends | (3,798) | (3,798) | — | % | (11,394) | (11,394) | — | % | ||||||||||||
Net income available to common shareholders | $ | 144,860 | $ | 132,779 | 9.1 | % | $ | 411,501 | $ | 382,401 | 7.6 | % | ||||||||
Per Share Data: | ||||||||||||||||||||
Basic net income per common share | $ | 1.91 | $ | 1.76 | 8.5 | % | $ | 5.43 | $ | 5.07 | 7.1 | % | ||||||||
Diluted net income per common share | $ | 1.91 | $ | 1.75 | 9.1 | % | $ | 5.42 | $ | 5.05 | 7.3 | % | ||||||||
Performance Ratios: | ||||||||||||||||||||
Return on average assets (1) | 1.42 | % | 1.47 | % | (3.4) | % | 1.40 | % | 1.45 | % | (3.4) | % | ||||||||
Return on average shareholders' equity (2) | 10.64 | % | 10.18 | % | 4.5 | % | 10.28 | % | 10.11 | % | 1.7 | % | ||||||||
Return on average common shareholders' equity (3) | 11.08 | % | 10.62 | % | 4.3 | % | 10.72 | % | 10.56 | % | 1.5 | % | ||||||||
September 30, 2022 | December 31, 2021 | |||||||||||||||||||
Balance Sheet: | ||||||||||||||||||||
Loans, net of allowance for credit losses | $ | 27,423,606 | $ | 23,151,029 | 18.5% | |||||||||||||||
Deposits | $ | 33,690,049 | $ | 31,304,533 | 7.6% |
Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | |||||||||||||||||||
Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | |||||||||||||||
Interest-earning assets | ||||||||||||||||||||
Loans (1) (2) | $ | 27,021,031 | $ | 315,935 | 4.73 | % | $ | 22,986,835 | $ | 233,857 | 4.13 | % | ||||||||
Securities | ||||||||||||||||||||
Taxable | 3,436,460 | 18,204 | 2.10 | % | 2,868,212 | 8,986 | 1.24 | % | ||||||||||||
Tax-exempt (2) | 3,105,566 | 21,408 | 3.28 | % | 2,583,020 | 15,873 | 2.93 | % | ||||||||||||
Interest-bearing due from banks | 1,491,338 | 8,666 | 2.31 | % | 3,088,027 | 1,181 | 0.15 | % | ||||||||||||
Securities purchased under agreements to resell | 920,786 | 5,616 | 2.42 | % | 500,000 | 432 | 0.34 | % | ||||||||||||
Federal funds sold | — | — | — | % | — | — | — | % | ||||||||||||
Other | 188,854 | 1,935 | 4.06 | % | 155,047 | 539 | 1.38 | % | ||||||||||||
Total interest-earning assets | 36,164,035 | $ | 371,764 | 4.20 | % | 32,181,141 | $ | 260,868 | 3.32 | % | ||||||||||
Nonearning assets | ||||||||||||||||||||
Intangible assets | 1,883,350 | 1,857,039 | ||||||||||||||||||
Other nonearning assets | 2,417,264 | 1,857,950 | ||||||||||||||||||
Total assets | $ | 40,464,649 | $ | 35,896,130 | ||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
Interest checking | $ | 6,763,990 | 18,008 | 1.06 | % | $ | 5,591,119 | 2,453 | 0.17 | % | ||||||||||
Savings and money market | 12,765,435 | 29,347 | 0.91 | % | 11,359,595 | 5,300 | 0.19 | % | ||||||||||||
Time | 2,652,921 | 7,834 | 1.17 | % | 2,541,775 | 4,386 | 0.68 | % | ||||||||||||
Total interest-bearing deposits | 22,182,346 | 55,189 | 0.99 | % | 19,492,489 | 12,139 | 0.25 | % | ||||||||||||
Securities sold under agreements to repurchase | 215,646 | 182 | 0.34 | % | 164,837 | 57 | 0.14 | % | ||||||||||||
Federal Home Loan Bank advances | 1,010,865 | 5,762 | 2.26 | % | 888,369 | 4,558 | 2.04 | % | ||||||||||||
Subordinated debt and other borrowings | 426,267 | 4,847 | 4.51 | % | 586,387 | 6,571 | 4.45 | % | ||||||||||||
Total interest-bearing liabilities | 23,835,124 | 65,980 | 1.10 | % | 21,132,082 | 23,325 | 0.44 | % | ||||||||||||
Noninterest-bearing deposits | 10,926,069 | — | 0.00 | % | 9,247,382 | — | 0.00 | % | ||||||||||||
Total deposits and interest-bearing liabilities | 34,761,193 | $ | 65,980 | 0.75 | % | 30,379,464 | $ | 23,325 | 0.30 | % | ||||||||||
Other liabilities | 300,212 | 340,041 | ||||||||||||||||||
Total liabilities | 35,061,405 | 30,719,505 | ||||||||||||||||||
Shareholders' equity | 5,403,244 | 5,176,625 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 40,464,649 | $ | 35,896,130 | ||||||||||||||||
Net interest income | $ | 305,784 | $ | 237,543 | ||||||||||||||||
Net interest spread (3) | 3.10 | % | 2.88 | % | ||||||||||||||||
Net interest margin (4) | 3.47 | % | 3.03 | % |
Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | |||||||||||||||||||
Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | |||||||||||||||
Interest-earning assets | ||||||||||||||||||||
Loans (1) (2) | $ | 25,433,939 | $ | 795,164 | 4.27 | % | $ | 23,005,416 | $ | 694,017 | 4.11 | % | ||||||||
Securities | ||||||||||||||||||||
Taxable | 3,400,046 | 41,977 | 1.65 | % | 2,575,720 | 25,073 | 1.30 | % | ||||||||||||
Tax-exempt (2) | 2,978,901 | 58,752 | 3.18 | % | 2,478,584 | 47,917 | 3.11 | % | ||||||||||||
Interest-bearing due from banks | 2,050,401 | 12,580 | 0.82 | % | 2,913,215 | 2,450 | 0.11 | % | ||||||||||||
Securities purchased under agreements to resell | 1,175,119 | 10,674 | 1.21 | % | 331,502 | 842 | 0.34 | % | ||||||||||||
Federal funds sold | — | — | — | % | 13,321 | — | — | % | ||||||||||||
Other | 179,293 | 3,610 | 2.69 | % | 157,496 | 1,722 | 1.46 | % | ||||||||||||
Total interest-earning assets | 35,217,699 | $ | 922,757 | 3.61 | % | 31,475,254 | $ | 772,021 | 3.38 | % | ||||||||||
Nonearning assets | ||||||||||||||||||||
Intangible assets | 1,876,614 | 1,859,183 | ||||||||||||||||||
Other nonearning assets | 2,206,600 | 1,873,106 | ||||||||||||||||||
Total assets | $ | 39,300,913 | $ | 35,207,543 | ||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
Interest checking | $ | 6,560,068 | 26,741 | 0.54 | % | $ | 5,504,133 | 7,460 | 0.18 | % | ||||||||||
Savings and money market | 12,479,841 | 43,542 | 0.47 | % | 11,323,160 | 17,670 | 0.21 | % | ||||||||||||
Time | 2,272,063 | 13,337 | 0.78 | % | 2,839,449 | 18,338 | 0.86 | % | ||||||||||||
Total interest-bearing deposits | 21,311,972 | 83,620 | 0.52 | % | 19,666,742 | 43,468 | 0.30 | % | ||||||||||||
Securities sold under agreements to repurchase | 204,251 | 320 | 0.21 | % | 160,641 | 185 | 0.15 | % | ||||||||||||
Federal Home Loan Bank advances | 998,828 | 15,467 | 2.07 | % | 903,569 | 13,553 | 2.01 | % | ||||||||||||
Subordinated debt and other borrowings | 431,681 | 13,517 | 4.19 | % | 644,417 | 21,177 | 4.39 | % | ||||||||||||
Total interest-bearing liabilities | 22,946,732 | 112,924 | 0.66 | % | 21,375,369 | 78,383 | 0.49 | % | ||||||||||||
Noninterest-bearing deposits | 10,737,610 | — | 0.00 | % | 8,462,129 | — | 0.00 | % | ||||||||||||
Total deposits and interest-bearing liabilities | 33,684,342 | $ | 112,924 | 0.45 | % | 29,837,498 | $ | 78,383 | 0.35 | % | ||||||||||
Other liabilities | 266,018 | 312,598 | ||||||||||||||||||
Total liabilities | 33,950,360 | 30,150,096 | ||||||||||||||||||
Shareholders' equity | 5,350,553 | 5,057,447 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 39,300,913 | $ | 35,207,543 | ||||||||||||||||
Net interest income | $ | 809,833 | $ | 693,638 | ||||||||||||||||
Net interest spread (3) | 2.95 | % | 2.89 | % | ||||||||||||||||
Net interest margin (4) | 3.18 | % | 3.05 | % |
Three Months Ended September 30, | 2022 - 2021 | Nine Months Ended September 30, | 2022 - 2021 | ||||||||||||||||||||
2022 | 2021 | Increase (Decrease) | 2022 | 2021 | Increase (Decrease) | ||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||
Service charges on deposit accounts | $ | 10,906 | $ | 11,435 | (4.6)% | $ | 33,552 | $ | 28,648 | 17.1% | |||||||||||||
Investment services | 10,780 | 9,648 | 11.7% | 34,676 | 26,836 | 29.2% | |||||||||||||||||
Insurance sales commissions | 2,928 | 2,557 | 14.5% | 9,518 | 8,188 | 16.2% | |||||||||||||||||
Gains on mortgage loans sold, net | 1,117 | 7,814 | (85.7)% | 7,333 | 28,180 | (74.0)% | |||||||||||||||||
Investment gains on sales of securities, net | 217 | — | NM | 156 | 366 | (57.4)% | |||||||||||||||||
Trust fees | 5,706 | 5,049 | 13.0% | 17,744 | 14,798 | 19.9% | |||||||||||||||||
Income from equity method investment | 41,341 | 30,409 | 35.9% | 124,461 | 91,430 | 36.1% | |||||||||||||||||
Other noninterest income: | |||||||||||||||||||||||
Interchange and other consumer fees | 17,642 | 15,298 | 15.3% | 51,488 | 42,026 | 22.5% | |||||||||||||||||
Bank-owned life insurance | 5,658 | 4,741 | 19.3% | 15,418 | 14,210 | 8.5% | |||||||||||||||||
Loan swap fees | 1,187 | 1,579 | (24.8)% | 4,629 | 3,467 | 33.5% | |||||||||||||||||
SBA loan sales | 1,576 | 3,814 | (58.7)% | 6,234 | 9,503 | (34.4)% | |||||||||||||||||
Income from other equity investments | 725 | 8,604 | (91.6)% | 9,104 | 19,000 | (52.1)% | |||||||||||||||||
Other noninterest income | 5,022 | 3,147 | 59.6% | 19,490 | 8,359 | >100% | |||||||||||||||||
Total other noninterest income | 31,810 | 37,183 | (14.5)% | 106,363 | 96,565 | 10.1% | |||||||||||||||||
Total noninterest income | $ | 104,805 | $ | 104,095 | 0.7% | $ | 333,803 | $ | 295,011 | 13.1% |
Three Months Ended September 30, | 2022-2021 | Nine Months Ended September 30, | 2022-2021 | ||||||||||||||||||||||||||
2022 | 2021 | Increase (Decrease) | 2022 | 2021 | Increase (Decrease) | ||||||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||||||
Salaries and employee benefits: | |||||||||||||||||||||||||||||
Salaries | $ | 74,776 | $ | 61,382 | 21.8% | $ | 214,323 | $ | 177,593 | 20.7% | |||||||||||||||||||
Commissions | 6,188 | 6,097 | 1.5% | 18,763 | 16,273 | 15.3% | |||||||||||||||||||||||
Cash and equity incentives | 30,747 | 30,169 | 1.9% | 88,449 | 85,103 | 3.9% | |||||||||||||||||||||||
Employee benefits and other | 18,199 | 14,758 | 23.3% | 56,838 | 46,989 | 21.0% | |||||||||||||||||||||||
Total salaries and employee benefits | 129,910 | 112,406 | 15.6% | 378,373 | 325,958 | 16.1% | |||||||||||||||||||||||
Equipment and occupancy | 27,886 | 23,712 | 17.6% | 80,343 | 70,253 | 14.4% | |||||||||||||||||||||||
Other real estate (income) expense, net | (90) | (79) | (13.9%) | 101 | (749) | >100% | |||||||||||||||||||||||
Marketing and other business development | 4,958 | 3,325 | 49.1% | 13,494 | 8,326 | 62.1% | |||||||||||||||||||||||
Postage and supplies | 2,795 | 2,083 | 34.2% | 7,486 | 6,004 | 24.7% | |||||||||||||||||||||||
Amortization of intangibles | 1,951 | 2,088 | (6.6%) | 5,873 | 6,461 | (9.1%) | |||||||||||||||||||||||
Other noninterest expense: | |||||||||||||||||||||||||||||
Deposit related expense | 6,689 | 5,754 | 16.2% | 21,062 | 19,599 | 7.5% | |||||||||||||||||||||||
Lending related expense | 13,224 | 10,137 | 30.5% | 39,063 | 27,553 | 41.8% | |||||||||||||||||||||||
Wealth management related expense | 590 | 464 | 27.2% | 1,843 | 1,409 | 30.8% | |||||||||||||||||||||||
Other noninterest expense | 11,340 | 8,961 | 26.5% | 30,314 | 24,873 | 21.9% | |||||||||||||||||||||||
Total other noninterest expense | 31,843 | 25,316 | 25.8% | 92,282 | 73,434 | 25.7% | |||||||||||||||||||||||
Total noninterest expense | $ | 199,253 | $ | 168,851 | 18.0% | $ | 577,952 | $ | 489,687 | 18.0% |
Year acquired | Initial Valuation (in millions) | Amortizable Life (in years) | Remaining Value (in millions) | ||||||||||||||||||||
Core Deposit Intangible: | |||||||||||||||||||||||
Avenue | 2016 | $ | 8.8 | 9 | $ | 0.8 | |||||||||||||||||
BNC | 2017 | 48.1 | 10 | 17.4 | |||||||||||||||||||
Book of Business Intangible: | |||||||||||||||||||||||
Miller Loughry Beach Insurance | 2008 | $ | 1.3 | 20 | $ | 0.1 | |||||||||||||||||
CapitalMark | 2015 | 0.3 | 16 | 0.1 | |||||||||||||||||||
BNC Insurance | 2017 | 0.4 | 20 | 0.2 | |||||||||||||||||||
BNC Trust | 2017 | 1.9 | 10 | 0.9 | |||||||||||||||||||
Advocate Capital | 2019 | 13.6 | 13 | 6.7 | |||||||||||||||||||
JB&B Capital | 2022 | 6.7 | 10 | 6.1 |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Amount | Percent | Amount | Percent | ||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||
Owner occupied | $ | 3,426,271 | 12.4 | % | $ | 3,048,822 | 13.0 | % | |||||||||||||||
Non-owner occupied | 6,164,981 | 22.2 | % | 5,221,704 | 22.3 | % | |||||||||||||||||
Consumer real estate – mortgage | 4,271,913 | 15.4 | % | 3,680,684 | 15.7 | % | |||||||||||||||||
Construction and land development | 3,548,970 | 12.8 | % | 2,903,017 | 12.4 | % | |||||||||||||||||
Commercial and industrial | 9,748,994 | 35.2 | % | 8,074,546 | 34.5 | % | |||||||||||||||||
Consumer and other | 550,565 | 2.0 | % | 485,489 | 2.1 | % | |||||||||||||||||
Total loans | $ | 27,711,694 | 100.0 | % | $ | 23,414,262 | 100.0 | % |
Due in one year or less | After one but within five years | After five but within fifteen years | After fifteen years | Total | |||||||||||||
Commercial real estate: | |||||||||||||||||
Owner-occupied | $ | 203,819 | $ | 1,397,562 | $ | 1,446,420 | $ | 378,470 | $ | 3,426,271 | |||||||
Non-owner occupied | 1,113,069 | 4,157,691 | 827,638 | 66,583 | 6,164,981 | ||||||||||||
Consumer real estate - mortgage | 87,871 | 471,776 | 360,910 | 3,351,356 | 4,271,913 | ||||||||||||
Construction and land development | 1,086,009 | 2,118,408 | 273,955 | 70,598 | 3,548,970 | ||||||||||||
Commercial and industrial | 2,357,346 | 5,304,002 | 1,837,526 | 250,120 | 9,748,994 | ||||||||||||
Consumer and other | 147,933 | 212,124 | 144,173 | 46,335 | 550,565 | ||||||||||||
Total loans | $ | 4,996,047 | $ | 13,661,563 | $ | 4,890,622 | $ | 4,163,462 | $ | 27,711,694 | |||||||
Loans with fixed interest rates: | |||||||||||||||||
Commercial real estate: |
Owner-occupied | $ | 93,989 | $ | 958,455 | $ | 1,057,303 | $ | 274,414 | $ | 2,384,161 | |||||||
Non-owner occupied | 394,341 | 2,288,914 | 516,139 | 48,998 | 3,248,392 | ||||||||||||
Consumer real estate - mortgage | 45,882 | 322,162 | 139,022 | 2,020,889 | 2,527,955 | ||||||||||||
Construction and land development | 142,348 | 401,590 | 170,133 | 42,027 | 756,098 | ||||||||||||
Commercial and industrial | 824,492 | 1,682,442 | 1,281,747 | 175,665 | 3,964,346 | ||||||||||||
Consumer and other | 80,809 | 106,688 | 142,713 | 46,335 | 376,545 | ||||||||||||
Total loans | $ | 1,581,861 | $ | 5,760,251 | $ | 3,307,057 | $ | 2,608,328 | $ | 13,257,497 | |||||||
Loans with variable interest rates: | |||||||||||||||||
Commercial real estate: | |||||||||||||||||
Owner-occupied | $ | 109,830 | $ | 439,107 | $ | 389,117 | $ | 104,056 | $ | 1,042,110 | |||||||
Non-owner occupied | 718,728 | 1,868,777 | 311,499 | 17,585 | 2,916,589 | ||||||||||||
Consumer real estate - mortgage | 41,989 | 149,614 | 221,888 | 1,330,467 | 1,743,958 | ||||||||||||
Construction and land development | 943,661 | 1,716,818 | 103,822 | 28,571 | 2,792,872 | ||||||||||||
Commercial and industrial | 1,532,854 | 3,621,560 | 555,779 | 74,455 | 5,784,648 | ||||||||||||
Consumer and other | 67,124 | 105,436 | 1,460 | — | 174,020 | ||||||||||||
Total loans | $ | 3,414,186 | $ | 7,901,312 | $ | 1,583,565 | $ | 1,555,134 | $ | 14,454,197 |
September 30, | December 31, | ||||||||||
Loans past due 30 to 89 days: | 2022 | 2021 | |||||||||
Commercial real estate: | |||||||||||
Owner occupied | $ | 997 | $ | 727 | |||||||
Non-owner occupied | 939 | 1,434 | |||||||||
Consumer real estate – mortgage | 12,490 | 8,832 | |||||||||
Construction and land development | 67 | 61 | |||||||||
Commercial and industrial | 11,767 | 7,603 | |||||||||
Consumer and other | 4,594 | 2,283 | |||||||||
Total loans past due 30 to 89 days | $ | 30,854 | $ | 20,940 | |||||||
Loans past due 90 days or more: | |||||||||||
Commercial real estate: | |||||||||||
Owner occupied | $ | 1,725 | $ | 2,426 | |||||||
Non-owner occupied | 1,244 | 645 | |||||||||
Consumer real estate – mortgage | 8,737 | 4,450 | |||||||||
Construction and land development | — | 127 | |||||||||
Commercial and industrial | 6,934 | 7,311 | |||||||||
Consumer and other | 785 | 372 | |||||||||
Total loans past due 90 days or more | $ | 19,425 | $ | 15,331 | |||||||
Ratios: | |||||||||||
Loans past due 30 to 89 days as a percentage of total loans | 0.11 | % | 0.09 | % | |||||||
Loans past due 90 days or more as a percentage of total loans | 0.07 | % | 0.06 | % | |||||||
Total loans in past due status as a percentage of total loans | 0.18 | % | 0.15 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
ACL Allocated ($) | Total Loans ($) | ACL to Total Loans (%) | Loans to Total Loans (%) | ACL Allocated ($) | Total Loans ($) | ACL to Total Loans (%) | Loans to Total Loans (%) | |||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||
Owner occupied | $ | 20,069 | $ | 3,426,271 | 0.59 | % | 12.4 | % | $ | 19,618 | $ | 3,048,822 | 0.64 | % | 13.0 | % | ||||||||||
Non-owner occupied | 50,564 | 6,164,981 | 0.82 | % | 22.2 | % | 58,504 | 5,221,704 | 1.12 | % | 22.3 | % | ||||||||||||||
Consumer real estate - mortgage | 35,465 | 4,271,913 | 0.83 | % | 15.4 | % | 32,104 | 3,680,684 | 0.87 | % | 15.7 | % | ||||||||||||||
Construction and land development | 28,621 | 3,548,970 | 0.81 | % | 12.8 | % | 29,429 | 2,903,017 | 1.01 | % | 12.4 | % | ||||||||||||||
Commercial and industrial | 140,285 | 9,748,994 | 1.44 | % | 35.2 | % | 112,340 | 8,074,546 | 1.39 | % | 34.5 | % | ||||||||||||||
Consumer and other | 13,084 | 550,565 | 2.38 | % | 2.0 | % | 11,238 | 485,489 | 2.31 | % | 2.1 | % | ||||||||||||||
Total | $ | 288,088 | $ | 27,711,694 | 1.04 | % | 100.0 | % | $ | 263,233 | $ | 23,414,262 | 1.12 | % | 100.0 | % |
Provision for credit losses | Net (charge-offs) recoveries | Average loans | Ratio of net (charge-offs) recoveries to average loans (1) | |||||||||||
For the nine months ended September 30, 2022: | ||||||||||||||
Commercial real estate: | ||||||||||||||
Owner occupied | $ | 490 | $ | (39) | $ | 3,180,313 | — | % | ||||||
Non-owner occupied | (7,903) | (37) | 5,635,077 | — | % | |||||||||
Consumer real estate - mortgage | 2,472 | 889 | 3,925,478 | 0.03 | % | |||||||||
Construction and land development | (822) | 14 | 3,269,211 | — | % | |||||||||
Commercial and industrial | 40,236 | (12,291) | 8,876,433 | (0.19) | % | |||||||||
Consumer and other | 5,200 | (3,354) | 460,575 | (0.97) | % | |||||||||
Total | $ | 39,673 | $ | (14,818) | $ | 25,347,087 | (0.08) | % | ||||||
Provision for credit losses | Net (charge-offs) recoveries | Average loans | Ratio of net (charge-offs) recoveries to average loans (1) | |||||||||||
For the year ended December 31, 2021: | ||||||||||||||
Commercial real estate: | ||||||||||||||
Owner occupied | $ | (3,869) | $ | 189 | $ | 2,891,798 | 0.01 | % | ||||||
Non-owner occupied | (20,811) | 183 | 5,358,828 | — | % | |||||||||
Consumer real estate - mortgage | (2,856) | 1,656 | 3,320,083 | 0.05 | % | |||||||||
Construction and land development | (12,984) | 5 | 2,845,957 | — | % | |||||||||
Commercial and industrial | 52,645 | (38,728) | 8,154,391 | (0.47) | % | |||||||||
Consumer and other | 4,781 | (2,028) | 403,624 | (0.05) | % | |||||||||
Total | $ | 16,906 | $ | (38,723) | $ | 22,974,681 | (0.17) | % |
September 30, 2022 | December 31, 2021 | ||||||||||
Weighted average life | 11.70 years | 6.26 years | |||||||||
Effective duration* | 4.85% | 4.07% | |||||||||
Tax equivalent yield | 2.66% | 2.08% |
September 30, 2022 | Average Rate Paid | Percent | December 31, 2021 | Average Rate Paid | Percent | ||||||||||||||||||
Core funding: | |||||||||||||||||||||||
Noninterest-bearing deposit accounts | $ | 10,567,873 | 0.00% | 30.0% | $ | 10,461,071 | 0.00% | 31.9% | |||||||||||||||
Interest-bearing demand accounts | 5,495,521 | 0.90% | 15.6% | 4,936,735 | 0.14% | 15.1% | |||||||||||||||||
Savings and money market accounts | 10,133,636 | 0.71% | 28.8% | 9,792,104 | 0.18% | 29.9% | |||||||||||||||||
Time deposit accounts less than $250,000 | 1,184,453 | 0.79% | 3.4% | 998,586 | 0.65% | 3.0% | |||||||||||||||||
Reciprocating demand deposit accounts (1) | 1,521,373 | 0.71% | 4.3% | 1,075,774 | 0.21% | 3.3% | |||||||||||||||||
Reciprocating savings accounts (1) | 1,614,183 | 1.11% | 4.6% | 1,885,806 | 0.26% | 5.8% | |||||||||||||||||
Reciprocating CD accounts (1) | 231,778 | 1.22% | 0.7% | 166,836 | 0.57% | 0.5% | |||||||||||||||||
Total core funding | 30,748,817 | 0.51% | 87.4% | 29,316,912 | 0.14% | 89.5% | |||||||||||||||||
Noncore funding: | |||||||||||||||||||||||
Relationship based noncore funding: | |||||||||||||||||||||||
Other time deposits | 800,774 | 1.01% | 2.3% | 565,184 | 0.76% | 1.7% | |||||||||||||||||
Securities sold under agreements to repurchase | 190,554 | 0.34% | 0.5% | 152,559 | 0.15% | 0.5% | |||||||||||||||||
Total relationship based noncore funding | 991,328 | 0.85% | 2.8% | 717,743 | 0.65% | 2.2% | |||||||||||||||||
Wholesale funding: | |||||||||||||||||||||||
Brokered deposits | 1,497,606 | 3.06% | 4.3% | 1,019,259 | 0.31% | 3.1% | |||||||||||||||||
Brokered time deposits | 642,852 | 1.98% | 1.8% | 403,178 | 1.15% | 1.2% | |||||||||||||||||
Federal Home Loan Bank advances | 889,248 | 2.26% | 2.5% | 888,681 | 2.01% | 2.7% | |||||||||||||||||
Subordinated debt and other funding | 423,834 | 4.54% | 1.2% | 423,172 | 4.38% | 1.3% | |||||||||||||||||
Total wholesale funding | 3,453,540 | 2.81% | 9.8% | 2,734,290 | 1.60% | 8.3% | |||||||||||||||||
Total noncore funding | 4,444,868 | 2.40% | 12.6% | 3,452,033 | 1.42% | 10.5% | |||||||||||||||||
Totals | $ | 35,193,685 | 0.75% | 100.0% | $ | 32,768,945 | 0.33% | 100.0% |
Balances | Weighted Avg. Rate | ||||||||||
Denominations less than $250,000 | |||||||||||
Three months or less | $ | 541,801 | 0.76 | % |
Over three but less than six months | 289,983 | 1.00 | % | ||||||||
Over six but less than twelve months | 807,460 | 1.68 | % | ||||||||
Over twelve months | 333,354 | 1.92 | % | ||||||||
$ | 1,972,598 | 1.37 | % | ||||||||
Denominations $250,000 and greater | |||||||||||
Three months or less | $ | 346,019 | 1.12 | % | |||||||
Over three but less than six months | 156,116 | 1.28 | % | ||||||||
Over six but less than twelve months | 211,578 | 1.30 | % | ||||||||
Over twelve months | 173,546 | 2.19 | % | ||||||||
$ | 887,259 | 1.40 | % | ||||||||
Totals | $ | 2,859,857 | 1.38 | % |
Scheduled maturities | Weighted average interest rates (1) | ||||||||||
2022 | $ | — | — | % | |||||||
2023 | — | — | % | ||||||||
2024 | — | — | % | ||||||||
2025 | 116,250 | 3.51 | % | ||||||||
2026 | — | — | % | ||||||||
Thereafter | 775,013 | 2.15 | % | ||||||||
891,263 | |||||||||||
Deferred costs | (2,015) | ||||||||||
Total Federal Home Loan Bank advances | $ | 889,248 | |||||||||
Weighted average interest rate | 2.32 | % |
Name | Date Established | Maturity | Total Debt Outstanding | Interest Rate at September 30, 2022 | Coupon Structure | |||||||||||||||||||||||||||
Trust preferred securities | ||||||||||||||||||||||||||||||||
Pinnacle Statutory Trust I | December 29, 2003 | December 30, 2033 | $ | 10,310 | 6.33 | % | 30-day LIBOR + 2.80% (1) | |||||||||||||||||||||||||
Pinnacle Statutory Trust II | September 15, 2005 | September 30, 2035 | 20,619 | 5.07 | % | 30-day LIBOR + 1.40% (1) | ||||||||||||||||||||||||||
Pinnacle Statutory Trust III | September 7, 2006 | September 30, 2036 | 20,619 | 5.32 | % | 30-day LIBOR + 1.65% (1) | ||||||||||||||||||||||||||
Pinnacle Statutory Trust IV | October 31, 2007 | September 30, 2037 | 30,928 | 6.14 | % | 30-day LIBOR + 2.85% (1) | ||||||||||||||||||||||||||
BNC Capital Trust I | April 3, 2003 | April 15, 2033 | 5,155 | 5.76 | % | 30-day LIBOR + 3.25% (1) | ||||||||||||||||||||||||||
BNC Capital Trust II | March 11, 2004 | April 7, 2034 | 6,186 | 5.36 | % | 30-day LIBOR + 2.85% (1) | ||||||||||||||||||||||||||
BNC Capital Trust III | September 23, 2004 | September 23, 2034 | 5,155 | 4.91 | % | 30-day LIBOR + 2.40% (1) | ||||||||||||||||||||||||||
BNC Capital Trust IV | September 27, 2006 | December 31, 2036 | 7,217 | 5.37 | % | 30-day LIBOR + 1.70% (1) | ||||||||||||||||||||||||||
Valley Financial Trust I | June 26, 2003 | June 26, 2033 | 4,124 | 6.74 | % | 30-day LIBOR + 3.10% (1) | ||||||||||||||||||||||||||
Valley Financial Trust II | September 26, 2005 | December 15, 2035 | 7,217 | 4.78 | % | 30-day LIBOR + 1.49% (1) | ||||||||||||||||||||||||||
Valley Financial Trust III | December 15, 2006 | January 30, 2037 | 5,155 | 4.51 | % | 30-day LIBOR + 1.73% (1) | ||||||||||||||||||||||||||
Southcoast Capital Trust III | August 5, 2005 | September 30, 2035 | 10,310 | 5.17 | % | 30-day LIBOR + 1.50% (1) |
Name | Date Established | Maturity | Total Debt Outstanding | Interest Rate at September 30, 2022 | Coupon Structure | |||||||||||||||||||||||||||
Subordinated Debt | ||||||||||||||||||||||||||||||||
Pinnacle Financial Subordinated Notes | September 11, 2019 | September 15, 2029 | 300,000 | 4.13 | % | Fixed (2) | ||||||||||||||||||||||||||
Debt issuance costs and fair value adjustments | (9,161) | |||||||||||||||||||||||||||||||
Total subordinated debt and other borrowings | $ | 423,834 |
Estimated % Change in Net Interest Income Over 12 Months | ||||||||
September 30, 2022* | September 30, 2021* | |||||||
Instantaneous Rate Change | ||||||||
300 bps increase | 3.26 | % | 8.92 | % | ||||
200 bps increase | 1.74 | % | 5.79 | % | ||||
100 bps increase | 0.56 | % | 2.22 | % | ||||
100 bps decrease | (2.90) | % | (2.14) | % | ||||
200 bps decrease | (6.81) | % | (2.86) | % | ||||
300 bps decrease | (14.77) | % | (3.39) | % |
September 30, 2022* | September 30, 2021* | |||||||
Instantaneous Rate Change | ||||||||
300 bps increase | (20.11) | % | (12.34)% | |||||
200 bps increase | (13.86) | % | (7.97) | % | ||||
100 bps increase | (7.08) | % | (2.70) | % | ||||
100 bps decrease | 4.87 | % | (6.90) | % | ||||
200 bps decrease | 2.06 | % | (8.11) | % | ||||
300 bps decrease | (1.60) | % | (7.99) | % |
Period | Total Number of Shares Repurchased (1)(2) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
July 1, 2022 to July 31, 2022 | 4,067 | $ | 74.05 | — | 125,000,000 | |||||||||||||||||||||
August 1, 2022 to August 31, 2022 | — | — | — | 125,000,000 | ||||||||||||||||||||||
September 1, 2022 to September 30, 2022 | 8 | 81.08 | — | 125,000,000 | ||||||||||||||||||||||
Total | 4,075 | $ | 74.06 | — | 125,000,000 |
101.INS* | Inline XBRL Instance Document | |||||||
101.SCH* | Inline XBRL Schema Documents | |||||||
101.CAL* | Inline XBRL Calculation Linkbase Document | |||||||
101.LAB* | Inline XBRL Label Linkbase Document | |||||||
101.PRE* | Inline XBRL Presentation Linkbase Document | |||||||
101.DEF* | Inline XBRL Definition Linkbase Document | |||||||
104 | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in Inline XBRL (included in Exhibit 101) | |||||||
* | Filed herewith. | |||||||
** | Furnished herewith. |
PINNACLE FINANCIAL PARTNERS, INC. | ||||||||
November 4, 2022 | /s/ M. Terry Turner | |||||||
M. Terry Turner | ||||||||
President and Chief Executive Officer | ||||||||
November 4, 2022 | /s/ Harold R. Carpenter | |||||||
Harold R. Carpenter | ||||||||
Chief Financial Officer |
November 4, 2022 | Signature: | /s/ M. Terry Turner | ||||||
M. Terry Turner | ||||||||
President and Chief Executive Officer | ||||||||
Pinnacle Financial Partners, Inc. |
November 4, 2022 | Signature: | /s/ Harold R. Carpenter | ||||||
Harold R. Carpenter | ||||||||
Chief Financial Officer | ||||||||
Pinnacle Financial Partners, Inc. |
November 4, 2022 | /s/ M. Terry Turner | |||||||
M. Terry Turner | ||||||||
President and Chief Executive Officer | ||||||||
Pinnacle Financial Partners, Inc. |
November 4, 2022 | /s/ Harold R. Carpenter | |||||||
Harold R. Carpenter | ||||||||
Chief Financial Officer | ||||||||
Pinnacle Financial Partners, Inc. |
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CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Securities held-to-maturity, fair value | $ 2,520,970 | $ 1,188,049 |
Allowance for credit losses - securities held-to-maturity | $ (1,607) | $ (161) |
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) | 225,000 | 225,000 |
Preferred stock, shares outstanding (in shares) | 225,000 | 225,000 |
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | $ 1,000 |
Common stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common stock, shares authorized (in shares) | 180,000,000 | 180,000,000 |
Common stock, shares issued (in shares) | 76,413,000 | 76,143,000 |
Common stock, shares outstanding (in shares) | 76,413,000 | 76,143,000 |
Summary of Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Nature of Business — Pinnacle Financial Partners, Inc. (Pinnacle Financial) is a financial 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), BNC Bancorp (BNC) and Advocate Capital, Inc. (Advocate Capital) on July 31, 2015, September 1, 2015, July 1, 2016, June 16, 2017 and July 2, 2019, respectively. Pinnacle Bank also holds a 49% interest in Bankers Healthcare Group, LLC (BHG), a company that primarily serves as a full-service commercial loan provider to healthcare and other professional practices but also makes consumer loans for various purposes. The investment in BHG previously held by Pinnacle Financial was contributed to Pinnacle Bank effective September 30, 2022. Pinnacle Bank provides a full range of banking services, including investment, mortgage, insurance, and comprehensive wealth management services, in its 15 primarily urban markets across the Southeast. On March 1, 2022, Pinnacle Bank acquired the remaining 80% outstanding membership interest of JB&B Capital, LLC (JB&B) for a cash price of $32.0 million. JB&B is a commercial equipment financing business headquartered in Knoxville, TN. Pinnacle Bank had previously acquired 20% of JB&B in 2017. Pinnacle Financial accounted for the acquisition of JB&B 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 the acquisition. 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 JB&B acquisition. At the acquisition date, JB&B's net assets were initially recorded at a fair value of $12.9 million, consisting mainly of loans and leases receivable. JB&B's $29.5 million of indebtedness was also paid off in connection with consummation of the acquisition. The preexisting noncontrolling interest of JB&B held by Pinnacle Bank was remeasured at a fair value of $8.0 million on the acquisition date resulting in a gain on remeasurement of $5.5 million that was recorded in other noninterest income during the nine months ended September 30, 2022. The purchase price allocations for the acquisition of JB&B are preliminary and will be finalized upon the receipt of final valuations on certain assets and liabilities. 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 consolidated financial statements and related notes appearing in Pinnacle Financial's Annual Report on Form 10-K for the year ended December 31, 2021 (2021 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 Note 11. Other Borrowings 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 credit losses and determination of any impairment of goodwill or intangible assets. There have been no significant changes to Pinnacle Financial's significant accounting policies as disclosed in the 2021 10-K. Cash Flow Information — Supplemental cash flow information addressing certain cash and noncash transactions for the nine months ended September 30, 2022 and 2021 was as follows (in thousands):
Income Per Common Share — Basic net income per common share (EPS) is computed by dividing net income available to common shareholders 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 common shares outstanding is attributable to common stock options, restricted share awards, and restricted share unit awards, including those with performance-based vesting provisions. The dilutive effect of outstanding options, 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 common share calculations for the three and nine months ended September 30, 2022 and 2021 (in thousands, except per share data):
Recently Adopted Accounting Pronouncements — In March 2020, the FASB issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and has issued subsequent amendments thereto, which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Pinnacle Financial has implemented a transition plan to identify and modify its loans and other financial instruments, including certain indebtedness, with attributes that are either directly or indirectly influenced by LIBOR. Pinnacle Financial intends to discontinue originating LIBOR-based loans during 2022 and has begun negotiating loans primarily using its preferred replacement index, the Secured Overnight Financing Rate ("SOFR"). For Pinnacle Financial's currently outstanding LIBOR-based loans, the timing and manner in which each customer's contract transitions to SOFR will vary on a case-by-case basis. Pinnacle Financial expects to complete all loan transitions by June 30, 2023. Newly Issued Not Yet Effective Accounting Standards — In March 2022, the FASB issued Accounting Standards Update 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method, which allows multiple hedged layers to be designated for a single closed portfolio of financial assets resulting in a greater portion of the interest rate risk in the closed portfolio being eligible to be hedged. The amendments allow the flexibility to use different types of derivatives or combinations of derivatives to better align with risk management strategies. Furthermore, among other things, the amendments clarify that basis adjustments of hedged items in the closed portfolio should be allocated at the portfolio level and not the individual assets within the portfolio. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted, including early adoption in an interim period. An entity should apply ASU 2022-01 prospectively. If an entity elects to early adopt ASU 2022-01 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. Pinnacle Financial is assessing ASU 2022-01 and its impact on its accounting and disclosures. In March 2022, the FASB issued Accounting Standards Update 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which removes the accounting guidance for troubled debt restructurings and requires entities to evaluate whether a modification provided to a borrower results in a new loan or continuation of an existing loan. The amendments enhance existing disclosures and require new disclosures for receivables when there has been a modification in contractual cash flows due to a borrower experiencing financial difficulties. Additionally, the amendments require public business entities to disclose gross charge-off information by year of origination in the vintage disclosures. The guidance is effective for entities that have adopted ASU 2016-13 for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted, including early adoption in an interim period. An entity should apply ASU 2022-02 prospectively. If an entity elects to early adopt ASU 2022-02 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. Pinnacle Financial is assessing ASU 2022-02 and its impact on its accounting and disclosures. In June 2022, the FASB issued Accounting Standards Update 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies the guidance in ASC 820 when measuring the fair value of equity securities subject to contractual restrictions that prohibit the sale of an equity security. This update also requires specific disclosures related to these types of securities. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted, including early adoption in an interim period. An entity should apply ASU 2022-03 prospectively once adopted. Pinnacle Financial is assessing ASU 2022-03 and its impact on its accounting and disclosures. Other than those pronouncements discussed above and those which have been recently adopted, Pinnacle Financial does not believe there were any other recently issued accounting pronouncements that may materially impact its consolidated financial statements. Subsequent Events — 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 September 30, 2022 through the date of the issued financial statements. In October 2022, Pinnacle Financial purchased interest rate caps and floors on certain SOFR-based variable rate loans as more fully disclosed in Note 8. Derivative Instruments. Other than these hedging transactions, no other subsequent events were noted.
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment | Note 2. Equity method investment A summary of BHG's financial position as of September 30, 2022 and December 31, 2021 and results of operations as of and for the three and nine months ended September 30, 2022 and 2021, were as follows (in thousands):
At September 30, 2022, technology, trade name and customer relationship intangibles, net of related amortization, totaled $6.4 million compared to $6.8 million as of December 31, 2021. Amortization expense of $128,000 and $384,000, respectively, was included for the three and nine months ended September 30, 2022 compared to $188,000 and $564,000, respectively, for the same periods in the prior year. Accretion income of $164,000 and $595,000, respectively, was included in the three and nine months ended September 30, 2022 compared to $349,000 and $1.2 million, respectively, for the same periods in the prior year. During the three and nine months ended September 30, 2022, Pinnacle Financial and Pinnacle Bank received dividends of $18.6 million and $59.4 million, respectively, from BHG in the aggregate compared to $16.8 million and $66.2 million, respectively, during the three and nine months ended September 30, 2021. Earnings from BHG are included in Pinnacle Financial's consolidated tax return. Profits from intercompany transactions are eliminated. During the three and nine months ended September 30, 2022, Pinnacle Bank purchased loans from BHG of $49.6 million and $125.6 million, respectively, compared to loan purchases of $75.8 million and $200.7 million, respectively, during the three and nine months ended September 30, 2021. These loans were purchased at par pursuant to BHG's joint venture loan program whereby BHG and Pinnacle Bank share proportionately in the credit risk of the acquired loans based on the rate on the loan and the rate of the purchase. The yield on this portfolio to Pinnacle Bank is anticipated to be between 4.50% and 6.00% per annum. At September 30, 2022 and December 31, 2021, there were $374.3 million and $319.1 million, respectively, of BHG joint venture program loans held by Pinnacle Bank.
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Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Note 3. Securities The amortized cost and fair value of securities available-for-sale and held-to-maturity at September 30, 2022 and December 31, 2021 are summarized as follows (in thousands):
During the quarters ended March 31, 2022, March 31, 2020 and September 30, 2018, Pinnacle Financial transferred, at fair value, $1.1 billion, $873.6 million and $179.8 million, respectively, of securities from the available-for-sale portfolio to the held-to-maturity portfolio. The related net unrealized after tax losses of $1.5 million, net unrealized after tax gains of $69.0 million and net unrealized after tax losses of $2.2 million, respectively, remained in accumulated other comprehensive income (loss) and are being amortized over the remaining life of the transferred securities, offsetting the related amortization of discount or premium on the transferred securities. No gains or losses were recognized at the time of the transfer. At September 30, 2022, approximately $666.4 million 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 September 30, 2022, repurchase agreements comprised of secured borrowings totaled $190.6 million and were secured by $190.6 million of pledged U.S. government agency securities, mortgage-backed 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 September 30, 2022 by contractual maturity is 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 September 30, 2022 and December 31, 2021, the following available-for-sale securities 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 available-for-sale securities were in an unrealized loss position were September 30, 2022 and December 31, 2021. As such, it is possible that an available-for-sale security had a market value less than its amortized cost on other days during the twelve-month periods ended September 30, 2022 and December 31, 2021, but is not in the "Investments with an Unrealized Loss of less than 12 months" category above. As shown in the tables above, at September 30, 2022, Pinnacle Financial had approximately $387.4 million in unrealized losses on approximately $3.3 billion of available-for-sale securities. For any securities classified as available-for-sale that are in an unrealized loss position at the balance sheet date, Pinnacle Financial assesses whether or not it intends to sell the security, or more likely than not will be required to sell the security, before recovery of its amortized cost basis which would require a write-down to fair value through net income. Because Pinnacle Financial currently does not intend to sell those available-for-sale securities that have an unrealized loss at September 30, 2022, 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 has determined that no write-down is necessary. In addition, Pinnacle Financial evaluates whether any portion of the decline in fair value of available-for-sale securities is the result of credit deterioration, which would require the recognition of an allowance for credit losses. Such evaluations consider the extent to which the amortized cost of the security exceeds its fair value, changes in credit ratings and any other known adverse conditions related to the specific security. The unrealized losses associated with available-for-sale securities at September 30, 2022 are driven by changes in interest rates and are not due to the credit quality of the securities, and accordingly, no allowance for credit losses is considered necessary related to available-for-sale securities at September 30, 2022. These securities will continue to be monitored as a part of Pinnacle Financial's ongoing evaluation of credit quality. 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. The allowance for credit losses on held-to-maturity securities is measured on a collective basis by major security type. Pinnacle Financial has a zero loss expectation for U.S. treasury securities in addition to U.S. Government agency securities and mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, and accordingly, no allowance for credit losses is estimated for these securities. Credit losses on held-to-maturity state and municipal securities and corporate notes and other securities are estimated using third-party probability of default and loss given default models driven primarily by macroeconomic factors over a reasonable and supportable period of eighteen months with a twelve month reversion to average loss factors. At September 30, 2022 and December 31, 2021, the estimated allowance for credit losses on these held-to-maturity securities was $1.6 million and $161,000, respectively, with the change driven largely by the increase in the balance of held-to-maturity securities and by changes in macroeconomic forecasts. Pinnacle Financial utilizes bond credit ratings assigned by third party ratings agencies to monitor the credit quality of debt securities held-to-maturity. At September 30, 2022, all debt securities classified as held-to-maturity were rated A or higher by the ratings agencies. Updated credit ratings are obtained as they become available from the ratings agencies. 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 or preparing for anticipated changes in market interest rates. 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. During the nine months ended September 30, 2022, $29.5 million of available-for-sale securities were sold resulting in gross realized gains of $292,000 and gross realized losses of $136,000. During the nine months ended September 30, 2021, $2.2 million of available-for-sale securities were sold resulting in gross realized gains of $366,000. Pinnacle Financial has entered into various fair value hedging transactions to mitigate the impact of changing interest rates on the fair values of available for sale securities. See Note 8. Derivative Instruments for disclosure of the gains and losses recognized on derivative instruments and the cumulative fair value hedging adjustments to the carrying amount of the hedged securities.
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Loans and Allowance for Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Credit Losses | Note 4. Loans and Allowance for Credit 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 by Pinnacle Bank with the Federal Deposit Insurance Corporation (FDIC). Pinnacle Financial uses the following loan categories for presentation of loan balances and the related allowance for credit losses on loans: •Owner occupied commercial real estate mortgage loans - Owner occupied commercial real estate mortgage loans are secured by commercial office buildings, industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. For such loans, repayment is largely dependent upon the operation of the borrower's business. •Non-owner occupied commercial real estate loans - These loans represent investment real estate loans secured by office buildings, industrial buildings, warehouses, retail buildings, and multifamily residential housing. Repayment is primarily dependent on lease income generated from the underlying collateral. •Consumer real estate mortgage loans - Consumer real estate mortgage consists primarily of loans secured by 1-4 family residential properties, including home equity lines of credit. Repayment is primarily dependent on the personal cash flow of the borrower. •Construction and land development loans - Construction and land development loans include loans where the repayment is dependent on the successful completion and eventual sale, refinance or 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. These loans are generally secured by equipment, inventory, and accounts receivable of the borrower and repayment is primarily dependent on business cash flows. Loans totaling $10.7 million and $371.1 million granted under the Paycheck Protection Program are included in this category as of September 30, 2022, and December 31, 2021, respectively. •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, consumer credit cards and loans to finance education, among others. Many consumer loans are unsecured. Repayment is primarily dependent on the personal cash flow of the borrower. Loans at September 30, 2022 and December 31, 2021 were as follows (in thousands):
Commercial loans receive risk ratings assigned by a financial advisor 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. Pass rated loans include multiple ratings categories representing varying degrees of risk attributes lesser than those of the other defined risk categories further described below. Pinnacle Financial believes its categories follow those used by Pinnacle Bank's primary regulators. At September 30, 2022, approximately 78.4% of Pinnacle Financial's loan portfolio was analyzed as a commercial loan type with a specifically assigned risk rating. 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. Consumer loans that have been placed on nonaccrual but have not otherwise been assigned a risk rating are believed by management to share risk characteristics with loans rated substandard-nonaccrual and have been presented as such in Pinnacle Financial's risk rating disclosures. 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 every risk rated loan of $1.0 million or more be subject to a formal credit risk review process. 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 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. Following are the definitions of the risk rating categories used by Pinnacle Financial. Pass rated loans include all credits other than those included within these categories: •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 net worth and financial 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 could 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. The table below presents loan balances classified within each risk rating category by primary loan type and based on year of origination or most recent renewal as of September 30, 2022 (in thousands):
(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 troubled debt restructurings. Potential problem loans, which are not included in nonaccrual loans, amounted to approximately $59.3 million at September 30, 2022, compared to $109.6 million at December 31, 2021. The table below presents the aging of past due balances by loan segment at September 30, 2022 and December 31, 2021 (in thousands):
The following table details the changes in the allowance for credit losses for the three and nine months ended September 30, 2022 and 2021, respectively, by loan classification (in thousands):
The adequacy of the allowance for credit losses is reviewed by Pinnacle Financial's management on a quarterly basis. This assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance. The level of the allowance is based upon management's evaluation of historical default and loss experience, current and projected economic conditions, asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers' ability to repay the loan (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. The level of the allowance for credit losses maintained by management is believed adequate to absorb all expected future losses inherent in the loan portfolio at the balance sheet date. The allowance is increased by provisions charged to expense and decreased by charge-offs, net of recoveries of amounts previously charged-off. Pinnacle Financial adopted ASU 2016-13 on January 1, 2020, which introduced the CECL methodology for estimating all expected losses over the life of a financial asset. Under the CECL methodology the allowance for credit losses is measured on a collective basis for pools of loans with similar risk characteristics, and for loans that do not share similar risk characteristics with the collectively evaluated pools, evaluations are performed on an individual basis. For commercial real estate, consumer real estate, construction and land development, and commercial and industrial loans, Pinnacle Financial primarily utilizes a probability of default and loss given default modeling approach. These models utilize historical correlations between default experience and certain macroeconomic factors as determined through a statistical regression analysis. All loan segments modeled using this approach consider changes in the national unemployment rate. In addition to the national unemployment rate, GDP and the three month treasury rate are considered for owner occupied commercial real estate, the commercial real estate price index and the five year treasury rate are considered for construction loans, and the three month treasury rate is considered for commercial and industrial loans. For the consumer and other loan segment, a non-statistical approach based on historical charge off rates is utilized. Losses are predicted over a period of time determined to be reasonable and supportable, and at the end of the reasonable and supportable period losses are reverted to long term historical averages. The reasonable and supportable period and reversion period are re-evaluated each quarter by Pinnacle Financial and are dependent on the current economic environment among other factors. A reasonable and supportable period of 24 months was utilized for all loan segments at September 30, 2022 and December 31, 2021, followed by a 12 month straight line reversion to long term averages at each measurement date. The estimated loan losses for all loan segments are adjusted for changes in qualitative factors not inherently considered in the quantitative analyses. These adjustments are based upon quarterly trend assessments in portfolio concentrations, policy exceptions, associate retention, independent loan review results, collateral considerations, risk ratings, competition and peer group credit quality trends. The qualitative allowance allocation, as determined by the processes noted above, is increased or decreased for each loan segment based on the assessment of these various qualitative factors. Loans that do not share similar risk characteristics with the collectively evaluated pools are evaluated on an individual basis and are excluded from the collectively evaluated pools. Individual evaluations are generally performed for loans greater than $1.0 million which have experienced significant credit deterioration. Such loans are evaluated for credit losses based on either discounted cash flows or the fair value of collateral. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, as of September 30, 2022 and December 31, 2021 (in thousands):
The table below presents the amortized cost basis of loans on nonaccrual status and loans past due 90 or more days and still accruing interest at September 30, 2022 and December 31, 2021. Also presented is the balance of loans on nonaccrual status at September 30, 2022 for which there was no related allowance for credit losses recorded (in thousands):
Pinnacle Financial's policy is the accrual of interest income will be discontinued 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 loans are placed on nonaccrual status, Pinnacle Financial reverses all previously accrued interest income against current year earnings. Pinnacle Financial's policy is 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 no interest income from cash payments received on nonaccrual loans during the three and nine months ended September 30, 2022 and 2021, respectively. Had these loans been on accruing status, an additional $240,000 and $864,000 of interest income would have been recognized for the three and nine months ended September 30, 2022 compared to an additional $689,000 and $2.1 million for the three and nine months ended September 30, 2021, respectively. Approximately $18.4 million and $15.5 million of nonaccrual loans were performing pursuant to their contractual terms as of September 30, 2022 and December 31, 2021, respectively. At September 30, 2022 and December 31, 2021, there were $2.2 million and $2.4 million, respectively, of troubled debt restructurings that were performing as of their restructure date and which were accruing interest. Troubled commercial loans are restructured by specialists within Pinnacle Bank's Special Assets Group, and all restructurings are approved by committees and/or credit officers separate and apart from the normal loan approval process. These specialists are charged with reducing Pinnacle Financial's overall risk and exposure to loss in the event of a restructuring by obtaining some or all of the following: improved documentation, additional guaranties, increase in curtailments, reduction in collateral release terms, additional collateral or other similar strategies. There were no troubled debt restructurings made during the three and nine months ended September 30, 2022 and 2021. During the nine months ended September 30, 2022 and 2021, there were no troubled debt restructurings that subsequently defaulted within twelve months of the restructuring. Pinnacle Financial analyzes its commercial loan portfolio to determine if a concentration of credit risk exists to any industries. 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 September 30, 2022 with the comparative exposures for December 31, 2021 (in thousands):
Among other data, Pinnacle Financial monitors two ratios regarding construction and commercial real estate lending as part of its concentration management processes. Both ratios are calculated by dividing certain types of loan balances for each of the two categories by Pinnacle Bank’s total risk-based capital. At September 30, 2022 and December 31, 2021, Pinnacle Bank’s construction and land development loans as a percentage of total risk-based capital were 85.4% and 79.1%, respectively. Non-owner occupied commercial real estate and multifamily loans (including construction and land development loans) as a percentage of total risk-based capital were 244.0% and 234.1% as of September 30, 2022 and December 31, 2021, respectively. Banking regulations have established guidelines for the construction ratio of less than 100% of total risk-based capital and for the non-owner occupied ratio of less than 300% of total risk-based capital. When a bank’s ratios are in excess of one or both of these guidelines, banking regulations generally require an increased level of monitoring in these lending areas by bank management. At September 30, 2022, Pinnacle Bank was within the 100% and 300% guidelines and has established what it believes to be appropriate controls to monitor its lending in these areas as it aims to keep the level of these loans below the 100% and 300% thresholds. At September 30, 2022, Pinnacle Bank had granted loans and other extensions of credit amounting to approximately $46.9 million to current directors, executive officers, and their related interests, of which $42.5 million had been drawn upon. At December 31, 2021, Pinnacle Bank had granted loans and other extensions of credit amounting to approximately $45.2 million to directors, executive officers, and their related interests, of which approximately $14.5 million had been drawn upon. All loans to directors, executive officers, and their related interests were performing in accordance with contractual terms at September 30, 2022 and December 31, 2021. Loans Held for Sale At September 30, 2022, Pinnacle Financial had approximately $15.4 million in commercial loans held for sale compared to $17.7 million at December 31, 2021, which primarily included commercial real estate and 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. At September 30, 2022, Pinnacle Financial had approximately $17.7 million of mortgage loans held-for-sale compared to approximately $30.3 million at December 31, 2021. Total mortgage loan volumes sold during the nine months ended September 30, 2022 were approximately $691.7 million compared to approximately $1.3 billion for the nine months ended September 30, 2021. During the three and nine months ended September 30, 2022, Pinnacle Financial recognized $1.1 million and $7.3 million, respectively, in gains on the sale of these loans, net of commissions paid, compared to $7.8 million and $28.2 million, respectively, during the three and nine months ended September 30, 2021. These residential 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 residential 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, Pinnacle Bank's liability pursuant to the terms of these representations and warranties has been insignificant to Pinnacle Bank.
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Income Taxes |
9 Months Ended |
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Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5. 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 $12.7 million at both September 30, 2022 and December 31, 2021, respectively. No change was recorded to the unrecognized tax benefit related to uncertain tax positions in each of the three and nine month periods ended September 30, 2022 and 2021. Pinnacle Financial's policy is to recognize interest and/or penalties related to income tax matters in income tax expense. No interest and penalties were recorded during the three months ended September 30, 2022. Pinnacle Financial recognized $264,000 in interest and penalties during the nine months ended September 30, 2022. No interest and penalties were recorded in the income statement for the three and nine months ended September 30, 2021. Pinnacle Financial's effective tax rate for both the three and nine months ended September 30, 2022 was 19.1%, compared to 19.4% and 18.9%, respectively, for the three and nine months ended September 30, 2021. The difference between the effective tax rate and the federal and state income tax statutory rate of 26.14% at September 30, 2022 and 2021 is primarily due to investments in bank qualified municipal securities, tax benefits of Pinnacle Bank's real estate investment trust subsidiary, participation in the Tennessee Community Investment Tax Credit (CITC) program, and tax benefits associated with share-based compensation, bank-owned life insurance and Pinnacle Financial's captive insurance subsidiary, offset in part by the limitation on deductibility of meals and entertainment expense, non-deductible FDIC premiums and non-deductible executive compensation. Income tax expense is also impacted by the vesting of equity-based awards and the exercise of employee stock options, which expense or benefit is recorded as a discrete item as a component of total income tax, the amount of which is dependent upon the change in the grant date fair value and the vest date fair value of the underlying award. For the three months ended September 30, 2022, Pinnacle Financial recognized no excess tax benefits or expenses. For the nine months ended September 30, 2022, Pinnacle Financial recognized excess tax benefits of $2.9 million. Comparatively, Pinnacle Financial recognized excess tax benefits of $334,000 and $2.2 million, respectively, for the three and nine months ended September 30, 2021.
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Commitments and Contingent Liabilities |
9 Months Ended |
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Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 6. 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, 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 September 30, 2022, these commitments amounted to $15.5 billion, of which approximately $1.6 billion related to home equity lines of credit. Standby letters of credit are generally issued on behalf of an applicant (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 September 30, 2022, these commitments amounted to $333.3 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 Bank's customers default on their resulting obligation to Pinnacle Bank, the maximum exposure to credit loss, without consideration of collateral, is represented by the contractual amount of those commitments. At September 30, 2022 and December 31, 2021, Pinnacle Financial had accrued reserves of $24.5 million and $22.5 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 resolutions of these claims outstanding at September 30, 2022 are not expected to have a material adverse impact on Pinnacle Financial's consolidated financial condition, operating results or cash flows.
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Stock Options and Restricted Shares |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Options and Restricted Shares | Note 7. Stock Options and Restricted Shares Pinnacle Financial's Amended and Restated 2018 Omnibus Equity Incentive Plan (the "2018 Plan") permits Pinnacle Financial to reissue outstanding awards that are subsequently forfeited, settled in cash, withheld by Pinnacle Financial to cover withholding taxes or expire unexercised and returned to the 2018 Plan. At September 30, 2022, there were approximately 1.4 million shares available for issuance under the 2018 Plan. Upon the acquisition of CapitalMark, Pinnacle Financial assumed approximately 858,000 stock options under the CapitalMark Option Plan. No further awards remain available for issuance under the CapitalMark Option Plan. At September 30, 2022, all of the options remaining outstanding under any equity incentive plan of Pinnacle Financial were granted under the CapitalMark Option Plan. Common Stock Options A summary of the stock option activity within the equity incentive plans during the nine months ended September 30, 2022 and information regarding, contractual terms remaining, intrinsic values and other matters is as follows:
(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 $95.50 per common share at December 31, 2021 for the 56,147 options that were in-the-money at December 31, 2021. (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 $81.10 per common share at Sept. 30, 2022 for the 42,147 options that were in-the-money at Sept. 30, 2022. Compensation costs related to stock options granted under Pinnacle Financial's equity incentive plans 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 nine months ended September 30, 2022 is as follows:
Pinnacle Financial has granted restricted share awards to associates and outside directors with a time-based vesting criteria. Compensation expense associated with time-based vesting restricted share awards is recognized over the time period that the restrictions associated with the awards lapse on a straight-line basis based on the total cost of the award. The following table outlines restricted stock grants that were made, grouped by similar vesting criteria, during the nine months ended September 30, 2022. The table reflects the life-to-date activity for these awards:
(1)Groups include employees (referred to as associates above) 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. Alternatively, the recipient can pay the withholding taxes in cash. For time-based vesting 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 awards to Pinnacle Financial's directors, 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 are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapse on March 1, 2023 based on each individual board member meeting attendance goals for the various board and board committee meetings to which each member was scheduled to attend. (4)These shares represent forfeitures resulting from recipients whose employment or board membership was terminated during the year-to-date period ended September 30, 2022. Any dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by Pinnacle Financial at the time of termination or will not be distributed from escrow, as applicable. Restricted Stock Unit Awards A summary of activity for unvested restricted stock units for the nine months ended September 30, 2022 is as follows:
Pinnacle Financial grants restricted stock units to its Named Executive Officers (NEOs) and leadership team members with time-based vesting criteria. Compensation expense associated with time-based vesting restricted stock unit awards is recognized over the time period that the restrictions associated with the awards lapse on a straight-line basis based on the total cost of the award. The following table outlines restricted stock unit grants that were made, grouped by similar vesting criteria, during the nine months ended September 30, 2022. The table reflects the life-to-date activity for these awards:
(1)These shares represent forfeitures resulting from recipients whose employment was terminated during the year-to-date period ended September 30, 2022. Dividend equivalents are held in escrow for award recipients for dividends paid prior to the forfeiture restrictions lapsing. Such dividend equivalents are not released from escrow if an award is forfeited. Performance Stock Unit Awards The following table details the performance stock unit awards outstanding at September 30, 2022:
(1)The named executive officers are awarded a range of awards that generally may be earned based on attainment of goals between a target level of performance and a maximum level of performance. The 230,000 performance units awarded to the NEOs in 2022 may be earned based on target level performance and do not include maximum level payout. (2)Performance stock unit awards granted in or after 2021, if earned, will be settled in shares of Pinnacle Financial common stock in the period noted in the table, if the performance criterion included in the applicable performance unit award agreement are met. During the nine months ended September 30, 2022 and 2021, the restrictions associated with 149,893 and 134,274 performance stock unit awards previously granted lapsed, based on the terms of the agreement and approval by Pinnacle Financial's Human Resources and Compensation Committee, and were settled into shares of Pinnacle Financial common stock with 53,125 and 46,655 shares being withheld to pay the taxes associated with the settlement of those shares. Additionally, during the nine months ended September 30, 2021, 199,633 performance stock unit awards granted in prior years were forfeited due to the failure to reach performance targets for the year ended December 31, 2020 as defined in the associated performance stock unit award agreements. Stock compensation expense related to restricted share awards, restricted stock unit awards and performance stock unit awards for the three and nine months ended September 30, 2022 was $10.7 million and $30.9 million, respectively, compared to $6.8 million and $17.8 million, respectively, for the three and nine months ended September 30, 2021. As of September 30, 2022, the total compensation cost related to unvested restricted share awards, restricted stock unit awards and performance stock unit awards estimated at maximum performance not yet recognized was $85.4 million. This expense, if the underlying units are earned, is expected to be recognized over a weighted-average period of 2.05 years.
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Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 8. 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 and classification as either a cash flow hedge or fair value hedge for those derivatives which are designated as part of a hedging relationship. Non-hedge derivatives For derivatives not designated as hedges, the gain or loss is recognized in current period earnings. 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 qualify as derivatives, but are not designated as hedging instruments. The income statement impact of the offsetting positions is limited to changes in the reserve for counterparty credit risk. A summary of Pinnacle Financial's interest rate swaps to facilitate customers' transactions as of September 30, 2022 and December 31, 2021 is included in the following table (in thousands):
The effects of Pinnacle Financial's interest rate swaps to facilitate customers' transactions on the income statement during the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands):
Derivatives designated as cash flow hedges For derivative instruments that are designated and qualify as a cash flow hedge, the aggregate fair value of the derivative instrument is recorded in other assets or other liabilities with any gain or loss related to changes in fair value recorded in accumulated other comprehensive income (loss), net of tax. The gain or loss is reclassified into earnings in the same period during which the hedged asset or liability affects earnings and is presented in the same income statement line item as the earnings effect of the hedged asset or liability. Pinnacle Financial uses forward cash flow hedge relationships in an effort to manage future interest rate exposure. There were no cash flow hedges outstanding as of September 30, 2022 and December 31, 2021. The effects of Pinnacle Financial's cash flow hedge relationships on the statement of comprehensive income (loss) during the three and nine months ended September 30, 2022 and 2021 were as follows, net of tax (in thousands):
The cash flow hedges were determined to be highly effective during the periods presented and as a result qualify for hedge accounting treatment. If a hedge was deemed to be ineffective, the amount included in accumulated other comprehensive income (loss) 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. Gains on cash flow hedges totaling $2.5 million and $7.5 million, net of tax, were reclassified from accumulated other comprehensive income (loss) into net income during the three and nine months ended September 30, 2022, respectively, compared to gains totaling $4.3 million and $6.5 million, net of tax, during the three and nine months ended September 30, 2021, respectively. Approximately $9.9 million in unrealized gains, net of tax, are expected to be reclassified from accumulated other comprehensive income (loss) into net income over the next twelve months related to previously terminated cash flow hedges. In October 2022, Pinnacle Financial paid $95.7 million to purchase interest rate caps and floors with notional amounts totaling approximately $1.8 billion designated as cash flow hedges intended to mitigate the impact of interest rate changes on certain SOFR-based variable rate loans. Derivatives designated as fair value hedges For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. The gain or loss on the derivative instrument is presented on the same income statement line item as the earnings effect of the hedged item. Pinnacle Financial utilizes interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of fixed rate callable available-for-sale securities. The hedging strategy converts the fixed interest rates to variable interest rates based on LIBOR, federal funds rates, or SOFR. These derivatives are designated as partial term hedges of selected cash flows covering specified periods of time prior to the call dates of the hedged securities. A summary of Pinnacle Financial's fair value hedge relationships as of September 30, 2022 and December 31, 2021 is as follows (in thousands):
Notional amounts of $464.7 million included in the table above as of September 30, 2022 receive a variable rate of interest based on three month LIBOR, notional amounts totaling $392.2 million as of September 30, 2022 receive a variable rate of interest based on the daily compounded federal funds rate, and notional amounts totaling $563.8 million as of September 30, 2022 receive a variable rate of interest based on the daily compounded secured overnight financing rate. The effects of Pinnacle Financial's securities fair value hedge relationships on the income statement during the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands):
The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at September 30, 2022 and December 31, 2021 (in thousands):
During the three and nine months ended September 30, 2022, amortization expense totaling $408,000 and $1.6 million, respectively, related to previously terminated fair value hedges was recognized as a reduction to interest income on loans compared to $726,000 and $2.6 million, respectively, during the three and nine months ended September 30, 2021. In April 2022, interest rates swaps designated as fair value hedges with notional amounts totaling $164.3 million and market values totaling $14.3 million were terminated. Approximately $986,000 in gains were recognized at the time of termination and the remaining $12.0 million will be accreted as additional interest income on the previously hedged available-for-sale mortgage backed and municipal securities over the same period as existing purchase discounts or premiums on these securities.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Note 9. Fair Value of Financial Instruments FASB ASC 820, Fair Value Measurements and Disclosures, 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: •Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. •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. •Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. 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. The 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 investments are investments recorded at fair value primarily in certain nonpublic investments and funds. The valuation of these nonpublic 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 financial reports provided by the portfolio managers of the investments. 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 if the entities and funds are not widely traded and the underlying investments are in privately-held and/or start-up companies for which market values are not readily available. Certain investments in funds for which the underlying assets of the fund represent publicly traded investments are included in Level 2 of the valuation hierarchy. Other assets – Included in other assets are certain assets carried at fair value, including interest rate swap agreements to facilitate customer transactions 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 agreements 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. Collateral dependent loans – Collateral dependent loans are measured at the fair value of the collateral securing the loan less estimated selling costs. The fair value of real estate collateral is determined based on real estate appraisals which are generally based on recent sales of comparable properties which are then adjusted for property specific factors. Non-real estate collateral is valued based on various sources, including third party asset valuations and internally determined values based on cost adjusted for depreciation and other judgmentally determined discount factors. Collateral dependent 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. A significant portion of these amounts relate to lots, homes and development projects that are either completed or are in various stages of completion 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 credit 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 as 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, interest rate swaps designated as fair value hedges, 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 September 30, 2022 and December 31, 2021, 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 September 30, 2022 and December 31, 2021 (in thousands):
(1) The carrying values of collateral dependent loans at September 30, 2022 and December 31, 2021 are net of valuation allowances of $9.6 million and $1.7 million, respectively. In the case of the available-for-sale 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 nine months ended September 30, 2022, 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 nine months ended September 30, 2022 and 2021 (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 tables present the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at September 30, 2022 and December 31, 2021. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash, cash equivalents, and restricted cash, 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):
(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, including both commitments for unfunded loans and standby letters of credit. In making this evaluation, Pinnacle Financial utilizes credit loss expectations on funded loans from our allowance for credit losses methodology and evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at September 30, 2022 and December 31, 2021, Pinnacle Financial included in other liabilities $24.5 million and $22.5 million, respectively, representing expected credit losses on off-balance sheet commitments, which are reflected in the estimated fair values of the related commitments. Also included in the fair values at September 30, 2022 and December 31, 2021 are unamortized fees related to these commitments of $1.8 million and $1.9 million, respectively.
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Regulatory Matters |
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Regulatory Matters | Note 10. 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. Under Tennessee corporate law, Pinnacle Financial is not permitted to pay dividends if, after giving effect to such payment, it would not be able to pay its debts as they become due in the usual course of business or its total assets would be less than the sum of its total liabilities plus any amounts needed to satisfy any preferential rights if it were dissolving. In addition, in deciding whether or not to declare a dividend of any particular size, Pinnacle Financial's board of directors must consider its and Pinnacle Bank's current and prospective capital, liquidity, and other needs. In addition to state law limitations on Pinnacle Financial's ability to pay dividends, the Federal Reserve imposes limitations on Pinnacle Financial's ability to pay dividends. Federal Reserve regulations limit dividends, stock repurchases and discretionary bonuses to executive officers if Pinnacle Financial's regulatory capital is below the level of regulatory minimums plus the applicable 2.5% capital conservation buffer. In addition, the Federal Reserve has issued supervisory guidance advising bank holding companies to eliminate, defer or reduce dividends paid on common stock and other forms of Tier 1 capital where the company’s net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends, the company’s prospective rate of earnings retention is not consistent with the company’s capital needs and overall current and prospective financial condition or the company will not meet, or is in danger of not meeting, minimum regulatory capital adequacy ratios. Recent supplements to this guidance reiterate the need for bank holding companies to inform their applicable reserve bank sufficiently in advance of the proposed payment of a dividend in certain circumstances. During the nine months ended September 30, 2022, Pinnacle Bank paid $75.0 million of dividends to Pinnacle Financial. As of September 30, 2022, Pinnacle Bank could pay approximately $929.1 million of additional dividends to Pinnacle Financial without prior approval of the Commissioner of the TDFI. Since the fourth quarter of 2013, Pinnacle Financial has paid a quarterly common stock dividend. The board of directors of Pinnacle Financial has increased the dividend amount per share over time. The most recent increase occurred on January 18, 2022 when the board of directors increased the dividend to $0.22 per common share from $0.18 per common share. During the second quarter of 2020, Pinnacle Financial issued 9.0 million depositary shares, each representing a 1/40th fractional interest in a share of Series B noncumulative, perpetual preferred stock (the "Series B Preferred Stock") in a registered public offering to both retail and institutional investors. Beginning in the third quarter of 2020, Pinnacle Financial began paying a quarterly dividend of $16.88 per share (or $0.422 per depositary share), on the Series B Preferred Stock. The amount and timing of all future dividend payments by Pinnacle Financial, if any, including dividends on Pinnacle Financial's Series B Preferred Stock (and associated depositary shares), is subject to discretion of Pinnacle Financial's board of directors and will depend on Pinnacle Financial's receipt of dividends from Pinnacle Bank, earnings, capital position, financial condition and other factors, including regulatory capital requirements, as they become known to Pinnacle Financial and receipt of any regulatory approvals that may become required as a result of each of Pinnacle Financial's or Pinnacle Bank's financial results. 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 1 capital to risk-weighted assets, total risk-based capital to risk-weighted assets and Tier 1 capital to average assets. As permitted by the interim final rule issued on March 27, 2020 by the federal banking regulatory agencies, each of Pinnacle Bank and Pinnacle Financial has elected the option to delay the estimated impact on regulatory capital of Pinnacle Financial's and Pinnacle Bank's adoption of ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which was effective January 1, 2020. The initial impact of adoption of ASU 2016-13, as well as 25% of the quarterly changes in the allowance for credit losses subsequent to adoption of ASU 2016-13 (collectively the “transition adjustments”), was delayed until December 31, 2021. As of January 1, 2022, the cumulative amount of the transition adjustments became fixed and will be phased out of the regulatory capital calculations evenly over a three year period, with 75% recognized in 2022, 50% recognized in 2023 and 25% recognized in 2024. Beginning on January 1, 2025, the temporary regulatory capital benefits will be fully reversed. Management believes, as of September 30, 2022, 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 Bank must maintain certain 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. The capital conservation buffer is not included in the required ratios of the table presented below. Pinnacle Financial's and Pinnacle Bank's actual capital amounts and resulting ratios, not including the applicable 2.5% capital conservation buffer, are presented in the following table (in thousands):
(*) Average assets for the above calculations were based on the most recent quarter.
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Other borrowings |
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Subordinated Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Borrowings | Note 11. 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 and has entered into certain other subordinated debt agreements. These instruments are outlined below as of September 30, 2022 (in thousands):
(1) Transitions to an alternative benchmark rate plus a comparable spread adjustment in the event that 30-day LIBOR is no longer published on a future adjustment date. (2) Migrates to three month LIBOR + 2.775% (or an alternative benchmark rate plus comparable spread in the event that three month LIBOR is no longer published on such adjustment date) beginning September 15, 2024 through the end of the term. On July 30, 2021, Pinnacle Bank redeemed $130.0 million aggregate principal amount of subordinated notes due July 30, 2025. Additionally on November 16, 2021, Pinnacle Financial redeemed $120.0 million aggregate principal amount of subordinated notes due November 16, 2026. The redemption was funded with existing cash on hand. Pursuant to regulatory guidelines, once the maturity date on subordinated notes is within five years, a portion of the notes will no longer be eligible to be included in regulatory capital, with an additional portion being excluded each year over the five year period approaching maturity.
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Summary of Significant Accounting Policies (Policies) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 consolidated financial statements and related notes appearing in Pinnacle Financial's Annual Report on Form 10-K for the year ended December 31, 2021 (2021 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 Note 11. Other Borrowings 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 credit losses and determination of any impairment of goodwill or intangible assets. There have been no significant changes to Pinnacle Financial's significant accounting policies as disclosed in the 2021 10-K. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Per Common Share | Income Per Common Share — Basic net income per common share (EPS) is computed by dividing net income available to common shareholders 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 common shares outstanding is attributable to common stock options, restricted share awards, and restricted share unit awards, including those with performance-based vesting provisions. The dilutive effect of outstanding options, 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 common share calculations for the three and nine months ended September 30, 2022 and 2021 (in thousands, except per share data):
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Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements — In March 2020, the FASB issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and has issued subsequent amendments thereto, which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Pinnacle Financial has implemented a transition plan to identify and modify its loans and other financial instruments, including certain indebtedness, with attributes that are either directly or indirectly influenced by LIBOR. Pinnacle Financial intends to discontinue originating LIBOR-based loans during 2022 and has begun negotiating loans primarily using its preferred replacement index, the Secured Overnight Financing Rate ("SOFR"). For Pinnacle Financial's currently outstanding LIBOR-based loans, the timing and manner in which each customer's contract transitions to SOFR will vary on a case-by-case basis. Pinnacle Financial expects to complete all loan transitions by June 30, 2023. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Newly Issued Not Yet Effective Accounting Standards | Newly Issued Not Yet Effective Accounting Standards — In March 2022, the FASB issued Accounting Standards Update 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method, which allows multiple hedged layers to be designated for a single closed portfolio of financial assets resulting in a greater portion of the interest rate risk in the closed portfolio being eligible to be hedged. The amendments allow the flexibility to use different types of derivatives or combinations of derivatives to better align with risk management strategies. Furthermore, among other things, the amendments clarify that basis adjustments of hedged items in the closed portfolio should be allocated at the portfolio level and not the individual assets within the portfolio. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted, including early adoption in an interim period. An entity should apply ASU 2022-01 prospectively. If an entity elects to early adopt ASU 2022-01 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. Pinnacle Financial is assessing ASU 2022-01 and its impact on its accounting and disclosures. In March 2022, the FASB issued Accounting Standards Update 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which removes the accounting guidance for troubled debt restructurings and requires entities to evaluate whether a modification provided to a borrower results in a new loan or continuation of an existing loan. The amendments enhance existing disclosures and require new disclosures for receivables when there has been a modification in contractual cash flows due to a borrower experiencing financial difficulties. Additionally, the amendments require public business entities to disclose gross charge-off information by year of origination in the vintage disclosures. The guidance is effective for entities that have adopted ASU 2016-13 for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted, including early adoption in an interim period. An entity should apply ASU 2022-02 prospectively. If an entity elects to early adopt ASU 2022-02 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. Pinnacle Financial is assessing ASU 2022-02 and its impact on its accounting and disclosures. In June 2022, the FASB issued Accounting Standards Update 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies the guidance in ASC 820 when measuring the fair value of equity securities subject to contractual restrictions that prohibit the sale of an equity security. This update also requires specific disclosures related to these types of securities. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted, including early adoption in an interim period. An entity should apply ASU 2022-03 prospectively once adopted. Pinnacle Financial is assessing ASU 2022-03 and its impact on its accounting and disclosures. Other than those pronouncements discussed above and those which have been recently adopted, Pinnacle Financial does not believe there were any other recently issued accounting pronouncements that may materially impact its consolidated financial statements.
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Subsequent Events | Subsequent Events — 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 September 30, 2022 through the date of the issued financial statements. In October 2022, Pinnacle Financial purchased interest rate caps and floors on certain SOFR-based variable rate loans as more fully disclosed in Note 8. Derivative Instruments. Other than these hedging transactions, no other subsequent events were noted. |
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 the nine months ended September 30, 2022 and 2021 was as follows (in thousands):
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Basic and Diluted Earnings Per Share Calculations | The following is a summary of the basic and diluted net income per common share calculations for the three and nine months ended September 30, 2022 and 2021 (in thousands, except per share data):
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Equity method investment (Tables) |
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Equity Method Investments | A summary of BHG's financial position as of September 30, 2022 and December 31, 2021 and results of operations as of and for the three and nine months ended September 30, 2022 and 2021, were as follows (in thousands):
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Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Available-for-sale | The amortized cost and fair value of securities available-for-sale and held-to-maturity at September 30, 2022 and December 31, 2021 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 September 30, 2022 by contractual maturity is 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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Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | At September 30, 2022 and December 31, 2021, the following available-for-sale securities 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) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans at September 30, 2022 and December 31, 2021 were as follows (in thousands):
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Loan Classification Categorized by Risk Rating Category | The table below presents loan balances classified within each risk rating category by primary loan type and based on year of origination or most recent renewal as of September 30, 2022 (in thousands):
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Past Due Balances by Loan Classification | The table below presents the aging of past due balances by loan segment at September 30, 2022 and December 31, 2021 (in thousands):
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Details of Changes in the Allowance for Loan Losses | The following table details the changes in the allowance for credit losses for the three and nine months ended September 30, 2022 and 2021, respectively, by loan classification (in thousands):
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Schedule of Collateral Dependent Loans Individually Evaluated for ACL | The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, as of September 30, 2022 and December 31, 2021 (in thousands):
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Financing Receivable, Nonaccrual | The table below presents the amortized cost basis of loans on nonaccrual status and loans past due 90 or more days and still accruing interest at September 30, 2022 and December 31, 2021. Also presented is the balance of loans on nonaccrual status at September 30, 2022 for which there was no related allowance for credit losses recorded (in thousands):
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Summary of Loan Portfolio Credit Risk Exposure | Pinnacle Financial analyzes its commercial loan portfolio to determine if a concentration of credit risk exists to any industries. 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 September 30, 2022 with the comparative exposures for December 31, 2021 (in thousands):
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Stock Options and Restricted Shares (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity | A summary of the stock option activity within the equity incentive plans during the nine months ended September 30, 2022 and information regarding, contractual terms remaining, intrinsic values and other matters is as follows:
(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 $95.50 per common share at December 31, 2021 for the 56,147 options that were in-the-money at December 31, 2021. (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 $81.10 per common share at Sept. 30, 2022 for the 42,147 options that were in-the-money at Sept. 30, 2022.
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Summary of Activity for Unvested Restricted Share Awards | A summary of activity for unvested restricted share awards for the nine months ended September 30, 2022 is as follows:
Pinnacle Financial has granted restricted share awards to associates and outside directors with a time-based vesting criteria. Compensation expense associated with time-based vesting restricted share awards is recognized over the time period that the restrictions associated with the awards lapse on a straight-line basis based on the total cost of the award. The following table outlines restricted stock grants that were made, grouped by similar vesting criteria, during the nine months ended September 30, 2022. The table reflects the life-to-date activity for these awards:
(1)Groups include employees (referred to as associates above) 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. Alternatively, the recipient can pay the withholding taxes in cash. For time-based vesting 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 awards to Pinnacle Financial's directors, 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 are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapse on March 1, 2023 based on each individual board member meeting attendance goals for the various board and board committee meetings to which each member was scheduled to attend. (4)These shares represent forfeitures resulting from recipients whose employment or board membership was terminated during the year-to-date period ended September 30, 2022. Any dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by Pinnacle Financial at the time of termination or will not be distributed from escrow, as applicable.
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Summary of Restricted Share Unit awards | Restricted Stock Unit Awards A summary of activity for unvested restricted stock units for the nine months ended September 30, 2022 is as follows:
Pinnacle Financial grants restricted stock units to its Named Executive Officers (NEOs) and leadership team members with time-based vesting criteria. Compensation expense associated with time-based vesting restricted stock unit awards is recognized over the time period that the restrictions associated with the awards lapse on a straight-line basis based on the total cost of the award. The following table outlines restricted stock unit grants that were made, grouped by similar vesting criteria, during the nine months ended September 30, 2022. The table reflects the life-to-date activity for these awards:
(1)These shares represent forfeitures resulting from recipients whose employment was terminated during the year-to-date period ended September 30, 2022. Dividend equivalents are held in escrow for award recipients for dividends paid prior to the forfeiture restrictions lapsing. Such dividend equivalents are not released from escrow if an award is forfeited. Performance Stock Unit Awards The following table details the performance stock unit awards outstanding at September 30, 2022:
(1)The named executive officers are awarded a range of awards that generally may be earned based on attainment of goals between a target level of performance and a maximum level of performance. The 230,000 performance units awarded to the NEOs in 2022 may be earned based on target level performance and do not include maximum level payout. (2)Performance stock unit awards granted in or after 2021, if earned, will be settled in shares of Pinnacle Financial common stock in the period noted in the table, if the performance criterion included in the applicable performance unit award agreement are met.
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Derivative Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Interest Rate Swaps | A summary of Pinnacle Financial's interest rate swaps to facilitate customers' transactions as of September 30, 2022 and December 31, 2021 is included in the following table (in thousands):
The effects of Pinnacle Financial's interest rate swaps to facilitate customers' transactions on the income statement during the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands):
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Schedule of Derivative Instruments | Derivatives designated as cash flow hedges For derivative instruments that are designated and qualify as a cash flow hedge, the aggregate fair value of the derivative instrument is recorded in other assets or other liabilities with any gain or loss related to changes in fair value recorded in accumulated other comprehensive income (loss), net of tax. The gain or loss is reclassified into earnings in the same period during which the hedged asset or liability affects earnings and is presented in the same income statement line item as the earnings effect of the hedged asset or liability. Pinnacle Financial uses forward cash flow hedge relationships in an effort to manage future interest rate exposure. There were no cash flow hedges outstanding as of September 30, 2022 and December 31, 2021. The effects of Pinnacle Financial's cash flow hedge relationships on the statement of comprehensive income (loss) during the three and nine months ended September 30, 2022 and 2021 were as follows, net of tax (in thousands):
The cash flow hedges were determined to be highly effective during the periods presented and as a result qualify for hedge accounting treatment. If a hedge was deemed to be ineffective, the amount included in accumulated other comprehensive income (loss) 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. Gains on cash flow hedges totaling $2.5 million and $7.5 million, net of tax, were reclassified from accumulated other comprehensive income (loss) into net income during the three and nine months ended September 30, 2022, respectively, compared to gains totaling $4.3 million and $6.5 million, net of tax, during the three and nine months ended September 30, 2021, respectively. Approximately $9.9 million in unrealized gains, net of tax, are expected to be reclassified from accumulated other comprehensive income (loss) into net income over the next twelve months related to previously terminated cash flow hedges. In October 2022, Pinnacle Financial paid $95.7 million to purchase interest rate caps and floors with notional amounts totaling approximately $1.8 billion designated as cash flow hedges intended to mitigate the impact of interest rate changes on certain SOFR-based variable rate loans. Derivatives designated as fair value hedges For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. The gain or loss on the derivative instrument is presented on the same income statement line item as the earnings effect of the hedged item. Pinnacle Financial utilizes interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of fixed rate callable available-for-sale securities. The hedging strategy converts the fixed interest rates to variable interest rates based on LIBOR, federal funds rates, or SOFR. These derivatives are designated as partial term hedges of selected cash flows covering specified periods of time prior to the call dates of the hedged securities. A summary of Pinnacle Financial's fair value hedge relationships as of September 30, 2022 and December 31, 2021 is as follows (in thousands):
Notional amounts of $464.7 million included in the table above as of September 30, 2022 receive a variable rate of interest based on three month LIBOR, notional amounts totaling $392.2 million as of September 30, 2022 receive a variable rate of interest based on the daily compounded federal funds rate, and notional amounts totaling $563.8 million as of September 30, 2022 receive a variable rate of interest based on the daily compounded secured overnight financing rate. The effects of Pinnacle Financial's securities fair value hedge relationships on the income statement during the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands):
The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at September 30, 2022 and December 31, 2021 (in thousands):
During the three and nine months ended September 30, 2022, amortization expense totaling $408,000 and $1.6 million, respectively, related to previously terminated fair value hedges was recognized as a reduction to interest income on loans compared to $726,000 and $2.6 million, respectively, during the three and nine months ended September 30, 2021.
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Fair Value of Financial Instruments (Tables) |
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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 September 30, 2022 and December 31, 2021, 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 September 30, 2022 and December 31, 2021 (in thousands):
(1) The carrying values of collateral dependent loans at September 30, 2022 and December 31, 2021 are net of valuation allowances of $9.6 million and $1.7 million, respectively.
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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 nine months ended September 30, 2022 and 2021 (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 tables present the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at September 30, 2022 and December 31, 2021. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash, cash equivalents, and restricted cash, 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):
(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, including both commitments for unfunded loans and standby letters of credit. In making this evaluation, Pinnacle Financial utilizes credit loss expectations on funded loans from our allowance for credit losses methodology and evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at September 30, 2022 and December 31, 2021, Pinnacle Financial included in other liabilities $24.5 million and $22.5 million, respectively, representing expected credit losses on off-balance sheet commitments, which are reflected in the estimated fair values of the related commitments. Also included in the fair values at September 30, 2022 and December 31, 2021 are unamortized fees related to these commitments of $1.8 million and $1.9 million, respectively.
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Regulatory Matters (Tables) |
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Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Regulatory Capital Requirement | Management believes, as of September 30, 2022, 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 Bank must maintain certain 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. The capital conservation buffer is not included in the required ratios of the table presented below. Pinnacle Financial's and Pinnacle Bank's actual capital amounts and resulting ratios, not including the applicable 2.5% capital conservation buffer, are presented in the following table (in thousands):
(*) Average assets for the above calculations were based on the most recent quarter.
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Other borrowings (Tables) |
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Subordinated Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of 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 and has entered into certain other subordinated debt agreements. These instruments are outlined below as of September 30, 2022 (in thousands):
(1) Transitions to an alternative benchmark rate plus a comparable spread adjustment in the event that 30-day LIBOR is no longer published on a future adjustment date. (2) Migrates to three month LIBOR + 2.775% (or an alternative benchmark rate plus comparable spread in the event that three month LIBOR is no longer published on such adjustment date) beginning September 15, 2024 through the end of the term.
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Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
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Sep. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Mar. 31, 2020 |
Sep. 30, 2018 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Cash Transactions: | |||||||
Interest paid | $ 114,326 | $ 90,651 | |||||
Income taxes paid, net | 115,090 | 88,614 | |||||
Operating lease payments | 12,255 | 10,878 | |||||
Noncash Transactions: | |||||||
Loans charged-off to the allowance for credit losses | $ 17,699 | $ 12,289 | 33,384 | 39,319 | |||
Loans foreclosed upon and transferred to other real estate owned | 65 | 798 | |||||
Available-for-sale securities transferred to held-to-maturity portfolio | $ 1,100,000 | $ 873,600 | $ 179,800 | 1,059,737 | 0 | ||
Right of use assets recognized during the period in exchange for lease obligations | $ 31,333 | $ 8,745 |
Summary of Significant Accounting Policies - Basic and Diluted Net Income Per Share Calculations (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Basic net income per common share calculation: | ||||
Net income available to common shareholders | $ 144,860 | $ 132,779 | $ 411,501 | $ 382,401 |
Denominator - Weighted average common shares outstanding (in shares) | 75,761,930 | 75,494,286 | 75,723,129 | 75,449,900 |
Basic net income per common share (in dollars per share) | $ 1.91 | $ 1.76 | $ 5.43 | $ 5.07 |
Diluted net income per common share calculation: | ||||
Numerator - Net income available to common shareholders | $ 144,860 | $ 132,779 | $ 411,501 | $ 382,401 |
Dilutive shares contingently issuable (in shares) | 217,000 | 342,000 | 222,000 | 311,000 |
Weighted Average Number of Shares Outstanding, Diluted | 75,979,056 | 75,836,142 | 75,945,469 | 75,760,618 |
Diluted net income per common share (in dollars per share) | $ 1.91 | $ 1.75 | $ 5.42 | $ 5.05 |
Equity method investment - Financial Position and Results of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Schedule of Equity Method Investments [Line Items] | |||||
Assets | $ 41,000,118 | $ 41,000,118 | $ 38,469,399 | ||
Liabilities | 35,658,006 | 35,658,006 | 33,158,792 | ||
Total liabilities and shareholders' equity | 41,000,118 | 41,000,118 | 38,469,399 | ||
Bankers Healthcare Group, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets | 4,045,386 | 4,045,386 | 2,724,542 | ||
Liabilities | 3,516,645 | 3,516,645 | 2,355,256 | ||
Equity interests | 528,741 | 528,741 | 369,286 | ||
Total liabilities and shareholders' equity | 4,045,386 | 4,045,386 | $ 2,724,542 | ||
Revenues | 293,427 | $ 192,160 | 829,986 | $ 528,767 | |
Net income | $ 80,088 | $ 63,280 | $ 257,121 | $ 184,195 |
Equity method investment - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Schedule of Equity Method Investments [Line Items] | |||||
Technology, trade name and customer relationship intangibles | $ 35,666 | $ 35,666 | $ 33,819 | ||
Amortization of Intangible Assets | 1,951 | $ 2,088 | 5,873 | $ 6,461 | |
Dividends received from equity method investment | 59,401 | 66,221 | |||
Loans | 27,711,694 | 27,711,694 | 23,414,262 | ||
Bankers Healthcare Group, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Technology, trade name and customer relationship intangibles | 6,400 | 6,400 | 6,800 | ||
Amortization of Intangible Assets | 128 | 188 | 384 | 564 | |
Accretion income | 164 | 349 | 595 | 1,200 | |
Dividends received from equity method investment | 18,600 | 16,800 | 59,400 | 66,200 | |
Payments to Acquire Loans Held-for-investment | 49,600 | $ 75,800 | 125,600 | $ 200,700 | |
Loans | $ 374,300 | $ 374,300 | $ 319,100 |
Loans and Allowance for Credit Losses - Financing Receivables Past Due (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 27,711,694 | $ 23,414,262 |
Commercial real estate - Owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,426,271 | 3,048,822 |
Commercial real estate - Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 6,164,981 | 5,221,704 |
Consumer real estate – mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 4,271,913 | 3,680,684 |
Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,548,970 | 2,903,017 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 9,748,994 | 8,074,546 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 550,565 | 485,489 |
30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 13,526 | 17,573 |
30-59 days past due | Commercial real estate - Owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 642 | 727 |
30-59 days past due | Commercial real estate - Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 307 | 1,434 |
30-59 days past due | Consumer real estate – mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,281 | 8,710 |
30-59 days past due | Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 67 | 61 |
30-59 days past due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 8,264 | 4,926 |
30-59 days past due | Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,965 | 1,715 |
60-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 17,328 | 3,367 |
60-89 days past due | Commercial real estate - Owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 355 | 0 |
60-89 days past due | Commercial real estate - Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 632 | 0 |
60-89 days past due | Consumer real estate – mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 11,209 | 122 |
60-89 days past due | Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
60-89 days past due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,503 | 2,677 |
60-89 days past due | Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,629 | 568 |
90 days or more past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 19,425 | 15,331 |
90 days or more past due | Commercial real estate - Owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,725 | 2,426 |
90 days or more past due | Commercial real estate - Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,244 | 645 |
90 days or more past due | Consumer real estate – mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 8,737 | 4,450 |
90 days or more past due | Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 127 |
90 days or more past due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 6,934 | 7,311 |
90 days or more past due | Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 785 | 372 |
Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 50,279 | 36,271 |
Financial Asset, Past Due | Commercial real estate - Owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,722 | 3,153 |
Financial Asset, Past Due | Commercial real estate - Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,183 | 2,079 |
Financial Asset, Past Due | Consumer real estate – mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 21,227 | 13,282 |
Financial Asset, Past Due | Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 67 | 188 |
Financial Asset, Past Due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 18,701 | 14,914 |
Financial Asset, Past Due | Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 5,379 | 2,655 |
Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 27,661,415 | 23,377,991 |
Financial Asset, Not Past Due | Commercial real estate - Owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,423,549 | 3,045,669 |
Financial Asset, Not Past Due | Commercial real estate - Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 6,162,798 | 5,219,625 |
Financial Asset, Not Past Due | Consumer real estate – mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 4,250,686 | 3,667,402 |
Financial Asset, Not Past Due | Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,548,903 | 2,902,829 |
Financial Asset, Not Past Due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 9,730,293 | 8,059,632 |
Financial Asset, Not Past Due | Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 545,186 | $ 482,834 |
Loans and Allowance for Credit Losses - Allowance for Credit Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | $ 272,483 | $ 273,747 | $ 263,233 | $ 285,050 |
Charged-off loans | (17,699) | (12,289) | (33,384) | (39,319) |
Recovery of previously charged-off loans | 6,716 | 3,008 | 18,566 | 8,673 |
Provision for Loan and Lease Losses | 26,588 | 4,169 | 39,673 | 14,231 |
Ending Balance | 288,088 | 268,635 | 288,088 | 268,635 |
Commercial real estate - Owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 19,609 | 19,311 | 19,618 | 23,298 |
Charged-off loans | (447) | (543) | (1,412) | (1,246) |
Recovery of previously charged-off loans | 1,039 | 80 | 1,373 | 1,158 |
Provision for Loan and Lease Losses | (132) | 411 | 490 | (3,951) |
Ending Balance | 20,069 | 19,259 | 20,069 | 19,259 |
Commercial real estate - Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 52,547 | 79,081 | 58,504 | 79,132 |
Charged-off loans | (99) | (201) | (284) | (672) |
Recovery of previously charged-off loans | 0 | 326 | 247 | 486 |
Provision for Loan and Lease Losses | (1,884) | (5,180) | (7,903) | (4,920) |
Ending Balance | 50,564 | 74,026 | 50,564 | 74,026 |
Consumer real estate – mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 33,883 | 30,445 | 32,104 | 33,304 |
Charged-off loans | (155) | (94) | (409) | (626) |
Recovery of previously charged-off loans | 426 | 777 | 1,298 | 1,690 |
Provision for Loan and Lease Losses | 1,311 | (103) | 2,472 | (3,343) |
Ending Balance | 35,465 | 31,025 | 35,465 | 31,025 |
Construction and land development | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 28,681 | 33,487 | 29,429 | 42,408 |
Charged-off loans | 0 | 0 | (150) | (367) |
Recovery of previously charged-off loans | 15 | 32 | 164 | 269 |
Provision for Loan and Lease Losses | (75) | (659) | (822) | (9,450) |
Ending Balance | 28,621 | 32,860 | 28,621 | 32,860 |
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 125,772 | 102,101 | 112,340 | 98,423 |
Charged-off loans | (13,029) | (10,167) | (22,684) | (32,890) |
Recovery of previously charged-off loans | 2,869 | 997 | 10,393 | 2,848 |
Provision for Loan and Lease Losses | 24,673 | 8,485 | 40,236 | 33,035 |
Ending Balance | 140,285 | 101,416 | 140,285 | 101,416 |
Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 11,991 | 9,322 | 11,238 | 8,485 |
Charged-off loans | (3,969) | (1,284) | (8,445) | (3,518) |
Recovery of previously charged-off loans | 2,367 | 796 | 5,091 | 2,222 |
Provision for Loan and Lease Losses | 2,695 | 1,215 | 5,200 | 2,860 |
Ending Balance | $ 13,084 | $ 10,049 | $ 13,084 | $ 10,049 |
Loans and Allowance for Credit Losses - Details on Allowance for Loan Losses and Recorded Investment by Loan Classification and Impairment Evaluation Method (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | $ 49,650 | $ 35,713 |
Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 29,265 | 28,531 |
Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 20,385 | 6,976 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 206 |
Commercial real estate - Owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 4,778 | 5,300 |
Commercial real estate - Owner occupied | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 4,778 | 5,300 |
Commercial real estate - Owner occupied | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Commercial real estate - Owner occupied | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Commercial real estate - Non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 3,773 | 5,631 |
Commercial real estate - Non-owner occupied | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 3,773 | 5,631 |
Commercial real estate - Non-owner occupied | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Commercial real estate - Non-owner occupied | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Consumer real estate – mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 19,835 | 16,392 |
Consumer real estate – mortgage | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 19,835 | 16,392 |
Consumer real estate – mortgage | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Consumer real estate – mortgage | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 879 | 1,208 |
Construction and land development | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 879 | 1,208 |
Construction and land development | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Construction and land development | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 20,385 | 7,182 |
Commercial and industrial | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Commercial and industrial | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 20,385 | 6,976 |
Commercial and industrial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 206 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Consumer and other | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Consumer and other | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Consumer and other | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | $ 0 | $ 0 |
Loans and Allowance for Credit Losses - Nonaccrual and Past Due Greater than 90 Days (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | $ 34,115 | $ 31,569 |
Financing Receivable, Nonaccrual, No Allowance | 1,271 | 13,188 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 6,757 | 1,607 |
Commercial real estate - Owner occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 2,417 | 2,694 |
Financing Receivable, Nonaccrual, No Allowance | 0 | 0 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Commercial real estate - Non-owner occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 1,244 | 1,404 |
Financing Receivable, Nonaccrual, No Allowance | 1,040 | 0 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Consumer real estate – mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 14,691 | 10,264 |
Financing Receivable, Nonaccrual, No Allowance | 0 | 0 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 144 |
Construction and land development | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 103 | 356 |
Financing Receivable, Nonaccrual, No Allowance | 0 | 0 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 15,660 | 16,849 |
Financing Receivable, Nonaccrual, No Allowance | 231 | 13,188 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 5,973 | 1,091 |
Consumer and other | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 0 | 2 |
Financing Receivable, Nonaccrual, No Allowance | 0 | 0 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 784 | $ 372 |
Loans and Allowance for Credit Losses - Recorded Investment, Principal Balance and Related Allowance (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, Interest Income, Cash Basis Method | $ 0 | $ 0 | $ 0 | $ 0 | |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 240,000 | $ 689,000 | 864,000 | $ 2,100,000 | |
Currently performing impaired loans | $ 18,400,000 | $ 18,400,000 | $ 15,500,000 |
Loans and Allowance for Credit Losses - Troubled Debt Restructurings (Details) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2021 |
Dec. 31, 2021
USD ($)
|
|
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructurings performing as of restructure date | $ 2.2 | $ 2.4 | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | 0 | 0 |
Loans and Allowance for Credit Losses - Industry Classification System (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Lessors of nonresidential buildings | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Principal Balances | $ 4,737,130 | |
Unfunded Commitments | 2,133,341 | |
Total exposure | 6,870,471 | $ 5,368,638 |
Lessors of residential buildings | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Principal Balances | 1,678,815 | |
Unfunded Commitments | 1,804,455 | |
Total exposure | 3,483,270 | 2,566,352 |
New housing for-sale builders | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Principal Balances | 724,818 | |
Unfunded Commitments | 1,108,631 | |
Total exposure | $ 1,833,449 | $ 1,534,789 |
Income Taxes - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Income Tax Disclosure [Abstract] | |||||
Unrecognized Tax Benefits | $ 12,700,000 | $ 12,700,000 | $ 12,700,000 | ||
Unrecognized Tax Benefits, Period Increase (Decrease) | 0 | $ 0 | 0 | $ 0 | |
Interest and penalties | $ 0 | $ 0 | $ 264,000 | $ 0 | |
Effective income tax rate (as percent) | 19.10% | 19.40% | 19.10% | 18.90% | |
Federal and State income tax statutory rate (as percent) | 26.14% | 26.14% | |||
Excess tax benefit | $ 0 | $ 334,000 | $ 2,900,000 | $ 2,200,000 |
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Loss Contingencies [Line Items] | ||
Off-Balance Sheet, Credit Loss, Liability | $ 24.5 | $ 22.5 |
Commitments | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | 15,500.0 | |
Home Equity Line of Credit | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | $ 1,600.0 | |
Standby letter of credit | ||
Loss Contingencies [Line Items] | ||
Expiry period of standby letter of credit, maximum | 2 years | |
Amount of commitment | $ 333.3 |
Stock Options and Restricted Shares - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2015 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation expense | $ 10,674 | $ 10,760 | $ 9,448 | $ 6,766 | $ 5,669 | $ 5,399 | $ 30,882 | $ 17,834 | |
Remaining Share-Based Compensation on Unvested Restricted Stock Awards | $ 85,400 | $ 85,400 | |||||||
Weighted Average Remaining Period of Sharebased Compensation Expense | 2 years 18 days | ||||||||
2018 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for issuances (in shares) | 1,400,000 | 1,400,000 | |||||||
CapitalMark Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for issuances (in shares) | 0 | 0 | |||||||
Shares acquired in period (in shares) | 858,000 |
Stock Options and Restricted Shares - Common Stock Options (Details) - Common stock options $ / shares in Units, $ in Thousands |
9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2022
USD ($)
$ / shares
shares
|
Dec. 31, 2021
USD ($)
$ / shares
shares
|
|||||||
Number | ||||||||
Outstanding, beginning balance (in shares) | 56,147 | |||||||
Granted (in shares) | 0 | |||||||
Exercised (in shares) | (14,000) | |||||||
Forfeited (in shares) | 0 | |||||||
Outstanding, ending balance (in shares) | 42,147 | 56,147 | ||||||
Additional disclosures | ||||||||
Options exercisable (in shares) | 42,147 | |||||||
Weighted-average exercise price of options outstanding (in dollars per share) | $ / shares | $ 25.00 | $ 24.51 | ||||||
Weighted-average contractual remaining term for options outstanding | 6 months 25 days | 1 year 2 months 8 days | ||||||
Aggregate intrinsic value | $ | $ 2,364 | [1] | $ 3,985 | [2] | ||||
Weighted- average exercise price of options exercisable (in dollars per share) | $ / shares | $ 25.00 | |||||||
Weighted-average contractual remaining term for options exercisable | 6 months 25 days | |||||||
Aggregate intrinsic value of options exercisable | $ | $ 2,364 | [1] | ||||||
|
Stock Options and Restricted Shares - Unvested Restricted Awards (Details) |
9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022
$ / shares
shares
| ||||||||||
Restricted share awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||||
Unvested, beginning of period (in shares) | 613,335 | |||||||||
Shares awarded | 238,305 | |||||||||
Restrictions lapsed and shares released to associates/directors (in shares) | (172,117) | |||||||||
Shares forfeited (in shares) | (31,011) | |||||||||
Unvested, end of period (in shares) | 648,512 | |||||||||
Grant Date Weighted-Average Cost | ||||||||||
Unvested, beginning of period (in dollars per share) | $ / shares | $ 64.93 | |||||||||
Unvested, end of period (in dollars per share) | $ / shares | $ 77.56 | |||||||||
Time Based Awards | Associates | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||||
Shares awarded | 228,825 | [1],[2] | ||||||||
Restrictions lapsed and shares released to associates/directors (in shares) | (59) | [1],[2] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Shares Withheld For Taxes By Associates Leadership Team and Directors | 55 | [1],[2] | ||||||||
Shares forfeited (in shares) | (6,835) | [1],[2],[3] | ||||||||
Unvested, end of period (in shares) | 221,876 | [1],[2] | ||||||||
Time Based Awards | Associates | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||||
Vesting period in years | 5 years | |||||||||
Outside Director Awards [Member] | Outside directors | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||||
Vesting period in years | 1 year | [1],[4] | ||||||||
Shares awarded | 9,480 | [1],[4] | ||||||||
Restrictions lapsed and shares released to associates/directors (in shares) | 0 | [1],[4] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Shares Withheld For Taxes By Associates Leadership Team and Directors | 0 | [1],[4] | ||||||||
Shares forfeited (in shares) | 0 | [1],[3],[4] | ||||||||
Unvested, end of period (in shares) | 9,480 | [1],[4] | ||||||||
|
Stock Options and Restricted Shares - Performance Unit Awards Outstanding (Details) - $ / shares |
9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|||||||
Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Unvested, beginning of period (in shares) | 56,368 | |||||||
Shares awarded | 38,133 | |||||||
Restrictions lapsed and shares released to participants | (18,897) | |||||||
Shares Forfeited by participants | 1,621 | |||||||
Unvested, end of period (in shares) | 73,983 | |||||||
Grant Date Weighted-Average Cost | ||||||||
Unvested, beginning of period (in dollars per share) | $ 71.22 | |||||||
Unvested, end of period (in dollars per share) | $ 88.21 | |||||||
2022 Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | 38,133 | |||||||
Restrictions lapsed and shares released to participants | 11 | |||||||
Shares withheld for taxes by participants | 4 | |||||||
Shares Forfeited by participants | [1] | 503 | ||||||
Unvested, end of period (in shares) | 37,615 | |||||||
Grant Date Weighted-Average Cost | ||||||||
Vesting period in years | 3 years | |||||||
Performance Unit Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | 149,893 | 134,274 | ||||||
Shares withheld for taxes by participants | 53,125 | 46,655 | ||||||
Shares Forfeited by participants | 199,633 | |||||||
2022 Performance Unit Award | Tranche 2022-2024 | ||||||||
Grant Date Weighted-Average Cost | ||||||||
Service period per tranche (in years) | 0 years | |||||||
Subsequent holding period per tranche (in years) | 0 years | |||||||
2022 Performance Unit Award | Named Executive Officers (NEOs) | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | 56,465 | |||||||
2022 Performance Unit Award | Named Executive Officers (NEOs) | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | 135,514 | |||||||
2022 Performance Unit Award | Leadership Team other than NEOs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | 32,320 | |||||||
2022 Special Performance Unit Award | Tranche 2022-2024 | ||||||||
Grant Date Weighted-Average Cost | ||||||||
Service period per tranche (in years) | 0 years | |||||||
Subsequent holding period per tranche (in years) | 1 year | |||||||
2022 Special Performance Unit Award | Named Executive Officers (NEOs) | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | 0 | |||||||
2022 Special Performance Unit Award | Named Executive Officers (NEOs) | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | 230,000 | |||||||
2022 Special Performance Unit Award | Leadership Team other than NEOs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | 0 | |||||||
2021 Performance Unit Award | Tranche 2021-2023 | ||||||||
Grant Date Weighted-Average Cost | ||||||||
Service period per tranche (in years) | [2] | 0 years | ||||||
Subsequent holding period per tranche (in years) | [2] | 0 years | ||||||
2021 Performance Unit Award | Named Executive Officers (NEOs) | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | [2],[3] | 89,234 | ||||||
2021 Performance Unit Award | Named Executive Officers (NEOs) | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | [2],[3] | 214,155 | ||||||
2021 Performance Unit Award | Leadership Team other than NEOs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | [2] | 45,240 | ||||||
2020 Performance Unit Award | Tranche 2020 | ||||||||
Grant Date Weighted-Average Cost | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 3 years | |||||||
2020 Performance Unit Award | Tranche 2021 | ||||||||
Grant Date Weighted-Average Cost | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 2 years | |||||||
2020 Performance Unit Award | Tranche 2022 | ||||||||
Grant Date Weighted-Average Cost | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 1 year | |||||||
2020 Performance Unit Award | Named Executive Officers (NEOs) | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | [3] | 136,137 | ||||||
2020 Performance Unit Award | Named Executive Officers (NEOs) | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | [3] | 204,220 | ||||||
2020 Performance Unit Award | Leadership Team other than NEOs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | 59,648 | |||||||
2019 Performance Unit Award | Tranche 2019 | ||||||||
Grant Date Weighted-Average Cost | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 3 years | |||||||
2019 Performance Unit Award | Tranche 2020 | ||||||||
Grant Date Weighted-Average Cost | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 2 years | |||||||
2019 Performance Unit Award | Tranche 2021 | ||||||||
Grant Date Weighted-Average Cost | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 1 year | |||||||
2019 Performance Unit Award | Named Executive Officers (NEOs) | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | [3] | 166,211 | ||||||
2019 Performance Unit Award | Named Executive Officers (NEOs) | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | [3] | 249,343 | ||||||
2019 Performance Unit Award | Leadership Team other than NEOs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | 52,244 | |||||||
2018 Performance Unit Award | Tranche 2018 | ||||||||
Grant Date Weighted-Average Cost | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 3 years | |||||||
2018 Performance Unit Award | Tranche 2019 | ||||||||
Grant Date Weighted-Average Cost | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 2 years | |||||||
2018 Performance Unit Award | Tranche 2020 | ||||||||
Grant Date Weighted-Average Cost | ||||||||
Service period per tranche (in years) | 2 years | |||||||
Subsequent holding period per tranche (in years) | 1 year | |||||||
2018 Performance Unit Award | Named Executive Officers (NEOs) | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | [3] | 96,878 | ||||||
2018 Performance Unit Award | Named Executive Officers (NEOs) | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | [3] | 145,339 | ||||||
2018 Performance Unit Award | Leadership Team other than NEOs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Shares awarded | 25,990 | |||||||
|
Derivative Instruments - Non-hedge Derivatives (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Derivative [Line Items] | |||||
Notional Amount | $ 3,291,452 | $ 3,291,452 | $ 3,081,984 | ||
Estimated Fair Value | (437) | (437) | (471) | ||
Derivative, Gain (Loss) on Derivative, Net | (207) | $ 126 | 34 | $ 627 | |
Assets | |||||
Derivative [Line Items] | |||||
Notional Amount | 1,645,726 | 1,645,726 | 1,540,992 | ||
Estimated Fair Value | 41,941 | 41,941 | 39,770 | ||
Liabilities | |||||
Derivative [Line Items] | |||||
Notional Amount | 1,645,726 | 1,645,726 | 1,540,992 | ||
Estimated Fair Value | $ (42,378) | $ (42,378) | $ (40,241) |
Derivative Instruments - Hedge Derivatives (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|
Oct. 13, 2022 |
Apr. 30, 2022 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Derivative [Line Items] | |||||||
Net gain on cash flow hedges reclassified from other comprehensive income into net income, net of tax | $ (2,477,000) | $ (4,338,000) | $ (7,497,000) | $ (6,526,000) | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 9,900,000 | ||||||
Hedging derivative | Cash flow hedge | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 1,800,000,000 | ||||||
Derivative, Cost of Hedge | $ 95,700,000 | ||||||
Cash flow hedge | Hedging derivative | Asset derivatives | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Statement of Financial Position | Other assets | ||||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | 0 | 0 | 0 | (15,034,000) | |||
Fair value hedge | Hedging derivative | |||||||
Derivative [Line Items] | |||||||
Forecasted Notional Amount | 1,420,724,000 | 1,420,724,000 | $ 1,031,490,000 | ||||
Fair Value Hedge Assets | 107,428,000 | 107,428,000 | (24,672,000) | ||||
Fair value hedge | Hedging derivative | Securities | |||||||
Derivative [Line Items] | |||||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | $ 986,000,000 | 67,917,000 | 3,850,000 | 132,100,000 | 30,524,000 | ||
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | (67,917,000) | (3,850,000) | (132,100,000) | (30,524,000) | |||
Derivative Instruments and Hedges, Assets | 1,397,792,000 | 1,397,792,000 | 1,165,773,000 | ||||
Fair Value Hedging Adjustment | (107,428,000) | (107,428,000) | 24,672,000 | ||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 12,000,000 | ||||||
Fair value hedge | Hedging derivative | Securities | Asset derivatives | |||||||
Derivative [Line Items] | |||||||
Forecasted Notional Amount | $ 1,420,724,000 | $ 1,420,724,000 | 559,820,000 | ||||
Derivative Asset, Statement of Financial Position | Other assets | Other assets | |||||
Weighted Average Remaining Maturity | 7 years 8 months 4 days | ||||||
Pay Rate (as percent) | 5.07% | 5.07% | |||||
Derivative, Type of Interest Rate Paid on Swap | 3 month LIBOR/ Federal Funds/ SOFR | ||||||
Fair Value Hedge Assets | $ 107,428,000 | $ 107,428,000 | 15,109,000 | ||||
Terminated Notional Amount of Interest Rate Derivatives | 164,300,000 | ||||||
Terminated Fair Value Amount of Interest Rate Derivatives | $ 14,300,000 | ||||||
Fair value hedge | Hedging derivative | Securities | Liability derivatives | |||||||
Derivative [Line Items] | |||||||
Forecasted Notional Amount | $ 0 | $ 0 | 471,670,000 | ||||
Weighted Average Remaining Maturity | 0 years | ||||||
Pay Rate (as percent) | 0.00% | 0.00% | |||||
Derivative, Type of Interest Rate Paid on Swap | N/A | ||||||
Fair Value Hedge Assets | $ 0 | $ 0 | $ (39,781,000) | ||||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | Other liabilities | ||||
Fair value hedge | Hedging derivative | Securities | Federal Funds Rate | |||||||
Derivative [Line Items] | |||||||
Forecasted Notional Amount | $ 392,200,000 | $ 392,200,000 | |||||
Fair value hedge | Hedging derivative | Securities | Secured Overnight Financing Rate | |||||||
Derivative [Line Items] | |||||||
Forecasted Notional Amount | 563,800,000 | 563,800,000 | |||||
Fair value hedge | Hedging derivative | Loans | |||||||
Derivative [Line Items] | |||||||
Amortization expense, reduction to interest income on loans | $ 408,000 | $ 726,000 | $ 1,600,000 | $ 2,600,000 |
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Recurring | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
U.S. Treasury securities | $ 206,000 | $ 193,609 | ||
U.S. Government agency securities | 406,938 | 632,009 | ||
Mortgage-backed securities | 1,329,528 | 1,920,239 | ||
State and municipal securities | 1,349,584 | 1,823,837 | ||
Agency-backed securities | 148,641 | 229,569 | ||
Corporate notes and other | 101,910 | 114,931 | ||
Total investment securities available-for-sale | 3,542,601 | 4,914,194 | ||
Other Investments | 147,165 | 125,969 | ||
Other assets | 211,183 | 57,441 | ||
Total assets at fair value | 3,900,949 | 5,097,604 | ||
Liabilities at fair value: [Abstract] | ||||
Other liabilities | 103,684 | 80,106 | ||
Total liabilities at fair value | 103,684 | 80,106 | ||
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 | 0 | 0 | ||
Total investment securities available-for-sale | 0 | 0 | ||
Other Investments | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets at fair value | 0 | 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 | 206,000 | 193,609 | ||
U.S. Government agency securities | 406,938 | 632,009 | ||
Mortgage-backed securities | 1,329,528 | 1,920,239 | ||
State and municipal securities | 1,348,954 | 1,823,009 | ||
Agency-backed securities | 148,641 | 229,569 | ||
Corporate notes and other | 101,910 | 114,931 | ||
Total investment securities available-for-sale | 3,541,971 | 4,913,366 | ||
Other Investments | 21,986 | 24,973 | ||
Other assets | 211,183 | 57,441 | ||
Total assets at fair value | 3,775,140 | 4,995,780 | ||
Liabilities at fair value: [Abstract] | ||||
Other liabilities | 103,684 | 80,106 | ||
Total liabilities at fair value | 103,684 | 80,106 | ||
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 | 630 | 828 | ||
Agency-backed securities | 0 | 0 | ||
Corporate notes and other | 0 | 0 | ||
Total investment securities available-for-sale | 630 | 828 | ||
Other Investments | 125,179 | 100,996 | ||
Other assets | 0 | 0 | ||
Total assets at fair value | 125,809 | 101,824 | ||
Liabilities at fair value: [Abstract] | ||||
Other liabilities | 0 | 0 | ||
Total liabilities at fair value | 0 | 0 | ||
Nonrecurring | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Total assets at fair value | 41,884 | 39,336 | ||
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Abstract] | ||||
Other real estate owned | 7,787 | 8,537 | ||
Collateral dependent loans (1) | [1] | 34,097 | 30,799 | |
Nonrecurring | Quoted market prices in an active market (Level 1) | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Total assets at fair value | 0 | 0 | ||
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Abstract] | ||||
Other real estate owned | 0 | 0 | ||
Collateral dependent loans (1) | [1] | 0 | 0 | |
Nonrecurring | Models with significant observable market parameters (Level 2) | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Total assets at fair value | 0 | 0 | ||
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Abstract] | ||||
Other real estate owned | 0 | 0 | ||
Collateral dependent loans (1) | [1] | 0 | 0 | |
Nonrecurring | Models with significant unobservable market parameters (Level 3) | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Total assets at fair value | 41,884 | 39,336 | ||
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Abstract] | ||||
Other real estate owned | 7,787 | 8,537 | ||
Collateral dependent loans (1) | [1] | $ 34,097 | $ 30,799 | |
|
Fair Value of Financial Instruments - Rollforward of Balance Sheet Amounts Within Level 3 Valuation Hierarchy (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Available-for-sale Securities | ||||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | ||||
Transfers out of Level 3 | $ 0 | |||
Recurring | Other investments | ||||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | ||||
Fair value, beginning of period | $ 121,611 | $ 78,755 | 100,996 | $ 47,759 |
Total realized gains included in income | 725 | 8,603 | 9,104 | 19,000 |
Changes in unrealized gains/losses included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases | 8,481 | 10,974 | 27,244 | 36,530 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (5,638) | (3,891) | (12,165) | (8,848) |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair value, end of period | 125,179 | 94,441 | 125,179 | 94,441 |
Total realized gains included in income | 725 | 8,603 | 9,104 | 19,000 |
Recurring | Available-for-sale Securities | ||||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | ||||
Fair value, beginning of period | 656 | 840 | 828 | 15,497 |
Total realized gains included in income | 2 | 2 | 5 | 1,300 |
Changes in unrealized gains/losses included in other comprehensive income | (28) | 30 | (45) | (3,138) |
Purchases | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | (158) | (12,787) |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair value, end of period | 630 | 872 | 630 | 872 |
Total realized gains included in income | $ 2 | $ 2 | $ 5 | $ 1,300 |
Fair Value of Financial Instruments - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
|||||
---|---|---|---|---|---|---|---|
Financial assets: | |||||||
Securities purchased with agreement to resell | $ 528,999 | $ 1,000,000 | |||||
Securities held-to-maturity | 2,520,970 | 1,188,049 | |||||
Quoted market prices in an active market (Level 1) | |||||||
Financial assets: | |||||||
Securities purchased with agreement to resell | 0 | 0 | |||||
Securities held-to-maturity | 0 | 0 | |||||
Loans, net | 0 | 0 | |||||
Consumer loans held-for-sale | 0 | 0 | |||||
Commercial loans held-for-sale | 0 | 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 | ||||
Models with significant observable market parameters (Level 2) | |||||||
Financial assets: | |||||||
Securities purchased with agreement to resell | 0 | 0 | |||||
Securities held-to-maturity | 2,520,970 | 1,188,049 | |||||
Loans, net | 0 | 0 | |||||
Consumer loans held-for-sale | 45,022 | 46,288 | |||||
Commercial loans held-for-sale | 15,248 | 17,871 | |||||
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 | ||||
Models with significant unobservable market parameters (Level 3) | |||||||
Financial assets: | |||||||
Securities purchased with agreement to resell | 862,339 | 980,543 | |||||
Securities held-to-maturity | 0 | 0 | |||||
Loans, net | 26,257,545 | 23,223,299 | |||||
Consumer loans held-for-sale | 0 | 0 | |||||
Commercial loans held-for-sale | 0 | 0 | |||||
Financial liabilities: | |||||||
Deposits and securities sold under agreements to repurchase | 32,779,483 | 30,812,222 | |||||
Federal Home Loan Bank advances | 1,074,943 | 1,006,866 | |||||
Subordinated debt and other borrowings | 440,875 | 479,879 | |||||
Off-balance sheet instruments: | |||||||
Commitments to extend credit | [1] | 26,270 | 24,351 | ||||
Carrying/ Notional Amount | |||||||
Financial assets: | |||||||
Securities purchased with agreement to resell | 528,999 | 1,000,000 | |||||
Securities held-to-maturity | 2,938,417 | 1,155,958 | |||||
Loans, net | 27,423,606 | 23,151,029 | |||||
Consumer loans held-for-sale | 45,509 | 45,806 | |||||
Commercial loans held-for-sale | 15,413 | 17,685 | |||||
Financial liabilities: | |||||||
Deposits and securities sold under agreements to repurchase | 33,880,603 | 31,457,092 | |||||
Federal Home Loan Bank advances | 889,248 | 888,681 | |||||
Subordinated debt and other borrowings | 423,834 | 423,172 | |||||
Off-balance sheet instruments: | |||||||
Commitments to extend credit | [1] | 15,841,847 | 13,063,942 | ||||
Estimated Fair Value | |||||||
Financial assets: | |||||||
Securities purchased with agreement to resell | 862,339 | [2] | 980,543 | ||||
Securities held-to-maturity | [2] | 2,520,970 | 1,188,049 | ||||
Loans, net | [2] | 26,257,545 | 23,223,299 | ||||
Consumer loans held-for-sale | [2] | 45,022 | 46,288 | ||||
Commercial loans held-for-sale | [2] | 15,248 | 17,871 | ||||
Financial liabilities: | |||||||
Deposits and securities sold under agreements to repurchase | [2] | 32,779,483 | 30,812,222 | ||||
Federal Home Loan Bank advances | [2] | 1,074,943 | 1,006,866 | ||||
Subordinated debt and other borrowings | [2] | 440,875 | 479,879 | ||||
Off-balance sheet instruments: | |||||||
Commitments to extend credit | [1],[2] | $ 26,270 | $ 24,351 | ||||
|
Regulatory Matters (Details) $ / shares in Units, shares in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2022
USD ($)
$ / shares
|
Jun. 30, 2020
shares
|
Sep. 30, 2022
USD ($)
$ / shares
|
Dec. 31, 2021
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 | |||||
Retained earnings | $ 2,224,736,000 | $ 2,224,736,000 | $ 1,864,350,000 | |||
Quarterly common stock dividend (in dollar per share) | $ / shares | $ 0.22 | $ 0.22 | $ 0.18 | |||
Depositary Shares | shares | 9,000 | |||||
Preferred Stock, Dividend Rate, Per-Dollar-Amount | $ / shares | $ 16.88 | |||||
Preferred Stock, Dividend Per Depositary Share | $ 0.422 | |||||
Pinnacle Financial | ||||||
Actual | ||||||
Total capital to risk weighted assets | 4,445,393,000 | $ 4,445,393,000 | $ 4,060,598,000 | |||
Tier I capital to risk weighted assets | 3,762,311,000 | 3,762,311,000 | 3,425,751,000 | |||
Common equity Tier 1 capital to risk weighted assets | 3,545,062,000 | 3,545,062,000 | 3,208,503,000 | |||
Tier I capital to average assets | [1] | $ 3,762,311,000 | $ 3,762,311,000 | $ 3,425,751,000 | ||
Actual | ||||||
Total capital to risk weighted assets (as percent) | 0.126 | 0.126 | 0.138 | |||
Tier I capital to risk weighted assets (as percent) | 0.107 | 0.107 | 0.117 | |||
Common equity Tier 1 capital to risk weighted assets | 0.100 | 0.100 | 0.109 | |||
Tier I capital to average assets (as percent) | [1] | 0.097 | 0.097 | 0.097 | ||
Minimum Capital Requirement | ||||||
Total capital to risk weighted assets | $ 2,822,505,000 | $ 2,822,505,000 | $ 2,347,963,000 | |||
Tier I capital to risk weighted assets | 2,116,879,000 | 2,116,879,000 | 1,760,972,000 | |||
Common equity Tier 1 capital to risk weighted assets | 1,587,659,000 | 1,587,659,000 | 1,320,729,000 | |||
Tier I capital to average assets | [1] | $ 1,555,559,000 | $ 1,555,559,000 | $ 1,412,747,000 | ||
Minimum Capital Requirement | ||||||
Total capital to risk weighted assets (as percent) | 0.080 | 0.080 | 0.080 | |||
Tier I capital to risk weighted assets (as percent) | 0.060 | 0.060 | 0.060 | |||
Common Equity Tier I capital to risk weighted assets (as percent) | 0.045 | 0.045 | 0.045 | |||
Tier I capital to average assets (as percent) | [1] | 0.040 | 0.040 | 0.040 | ||
Minimum To Be Well-Capitalized | ||||||
Total capital to risk weighted assets | $ 3,528,132,000 | $ 3,528,132,000 | $ 2,934,953,000 | |||
Tier I capital to risk weighted assets | $ 2,822,505,000 | $ 2,822,505,000 | $ 2,347,963,000 | |||
Minimum To Be Well-Capitalized | ||||||
Total capital to risk weighted assets (as percent) | 0.100 | 0.100 | 0.100 | |||
Tier I capital to risk weighted assets (as percent) | 0.080 | 0.080 | 0.080 | |||
Pinnacle Bank | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Cash dividends paid to Pinnacle Financial by Pinnacle Bank | $ 75,000,000 | |||||
Retained earnings | $ 929,100,000 | 929,100,000 | ||||
Actual | ||||||
Total capital to risk weighted assets | 4,155,586,000 | 4,155,586,000 | $ 3,670,111,000 | |||
Tier I capital to risk weighted assets | 3,901,504,000 | 3,901,504,000 | 3,464,265,000 | |||
Common equity Tier 1 capital to risk weighted assets | 3,901,381,000 | 3,901,381,000 | 3,464,142,000 | |||
Tier I capital to average assets | [1] | $ 3,901,504,000 | $ 3,901,504,000 | $ 3,464,265,000 | ||
Actual | ||||||
Total capital to risk weighted assets (as percent) | 0.118 | 0.118 | 0.126 | |||
Tier I capital to risk weighted assets (as percent) | 0.111 | 0.111 | 0.119 | |||
Common equity Tier 1 capital to risk weighted assets | 0.111 | 0.111 | 0.119 | |||
Tier I capital to average assets (as percent) | [1] | 0.101 | 0.101 | 0.099 | ||
Minimum Capital Requirement | ||||||
Total capital to risk weighted assets | $ 2,815,240,000 | $ 2,815,240,000 | $ 2,334,243,000 | |||
Tier I capital to risk weighted assets | 2,111,430,000 | 2,111,430,000 | 1,750,683,000 | |||
Common equity Tier 1 capital to risk weighted assets | 1,583,572,000 | 1,583,572,000 | 1,313,012,000 | |||
Tier I capital to average assets | [1] | $ 1,547,192,000 | $ 1,547,192,000 | $ 1,406,063,000 | ||
Minimum Capital Requirement | ||||||
Total capital to risk weighted assets (as percent) | 0.080 | 0.080 | 0.080 | |||
Tier I capital to risk weighted assets (as percent) | 0.060 | 0.060 | 0.060 | |||
Common Equity Tier I capital to risk weighted assets (as percent) | 0.045 | 0.045 | 0.045 | |||
Tier I capital to average assets (as percent) | [1] | 0.040 | 0.040 | 0.040 | ||
Minimum To Be Well-Capitalized | ||||||
Total capital to risk weighted assets | $ 3,519,050,000 | $ 3,519,050,000 | $ 2,917,804,000 | |||
Tier I capital to risk weighted assets | 2,815,240,000 | 2,815,240,000 | 2,334,243,000 | |||
Common equity Tier 1 capital to risk weighted assets | 2,287,382,000 | 2,287,382,000 | 1,896,573,000 | |||
Tier I capital to average assets | [1] | $ 1,933,990,000 | $ 1,933,990,000 | $ 1,757,578,000 | ||
Minimum To Be Well-Capitalized | ||||||
Total capital to risk weighted assets (as percent) | 0.100 | 0.100 | 0.100 | |||
Tier I capital to risk weighted assets (as percent) | 0.080 | 0.080 | 0.080 | |||
Common Equity Tier I capital to risk weighted assets (as percent) | 0.065 | 0.065 | 0.065 | |||
Tier I capital to average assets (as percent) | [1] | 0.050 | 0.050 | 0.050 | ||
|
Other borrowings (Details) $ in Thousands |
9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Nov. 16, 2021
USD ($)
|
Jul. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
subsidiary
|
Dec. 31, 2021
USD ($)
|
|||||
Debt Instrument [Line Items] | ||||||||
Number of wholly owned subsidiaries | subsidiary | 12 | |||||||
Term | 30 years | |||||||
Total Debt Outstanding | $ 423,834 | $ 423,172 | ||||||
Debt issuance costs and fair value adjustments | $ (9,161) | |||||||
Repayments of Subordinated Debt | $ 120,000 | $ 130,000 | ||||||
Pinnacle Statutory Trust I | ||||||||
Debt Instrument [Line Items] | ||||||||
Date Established | Dec. 29, 2003 | |||||||
Maturity | Dec. 30, 2033 | |||||||
Total Debt Outstanding | $ 10,310 | |||||||
Interest Rate (as percent) | [1] | 6.33% | ||||||
Coupon Structure | 30-day LIBOR + 2.80% (1) | |||||||
Pinnacle Statutory Trust II | ||||||||
Debt Instrument [Line Items] | ||||||||
Date Established | Sep. 15, 2005 | |||||||
Maturity | Sep. 30, 2035 | |||||||
Total Debt Outstanding | $ 20,619 | |||||||
Interest Rate (as percent) | [1] | 5.07% | ||||||
Coupon Structure | 30-day LIBOR + 1.40% (1) | |||||||
Pinnacle Statutory Trust III | ||||||||
Debt Instrument [Line Items] | ||||||||
Date Established | Sep. 07, 2006 | |||||||
Maturity | Sep. 30, 2036 | |||||||
Total Debt Outstanding | $ 20,619 | |||||||
Interest Rate (as percent) | [1] | 5.32% | ||||||
Coupon Structure | 30-day LIBOR + 1.65% (1) | |||||||
Pinnacle Statutory Trust IV | ||||||||
Debt Instrument [Line Items] | ||||||||
Date Established | Oct. 31, 2007 | |||||||
Maturity | Sep. 30, 2037 | |||||||
Total Debt Outstanding | $ 30,928 | |||||||
Interest Rate (as percent) | [1] | 6.14% | ||||||
Coupon Structure | 30-day LIBOR + 2.85% (1) | |||||||
BNC Capital Trust I | ||||||||
Debt Instrument [Line Items] | ||||||||
Date Established | Apr. 03, 2003 | |||||||
Maturity | Apr. 15, 2033 | |||||||
Total Debt Outstanding | $ 5,155 | |||||||
Interest Rate (as percent) | [1] | 5.76% | ||||||
Coupon Structure | 30-day LIBOR + 3.25% (1) | |||||||
BNC Capital Trust II | ||||||||
Debt Instrument [Line Items] | ||||||||
Date Established | Mar. 11, 2004 | |||||||
Maturity | Apr. 07, 2034 | |||||||
Total Debt Outstanding | $ 6,186 | |||||||
Interest Rate (as percent) | [1] | 5.36% | ||||||
Coupon Structure | 30-day LIBOR + 2.85% (1) | |||||||
BNC Capital Trust III | ||||||||
Debt Instrument [Line Items] | ||||||||
Date Established | Sep. 23, 2004 | |||||||
Maturity | Sep. 23, 2034 | |||||||
Total Debt Outstanding | $ 5,155 | |||||||
Interest Rate (as percent) | [1] | 4.91% | ||||||
Coupon Structure | 30-day LIBOR + 2.40% (1) | |||||||
BNC Capital Trust IV | ||||||||
Debt Instrument [Line Items] | ||||||||
Date Established | Sep. 27, 2006 | |||||||
Maturity | Dec. 31, 2036 | |||||||
Total Debt Outstanding | $ 7,217 | |||||||
Interest Rate (as percent) | [1] | 5.37% | ||||||
Coupon Structure | 30-day LIBOR + 1.70% (1) | |||||||
Valley Financial Trust I | ||||||||
Debt Instrument [Line Items] | ||||||||
Date Established | Jun. 26, 2003 | |||||||
Maturity | Jun. 26, 2033 | |||||||
Total Debt Outstanding | $ 4,124 | |||||||
Interest Rate (as percent) | [1] | 6.74% | ||||||
Coupon Structure | 30-day LIBOR + 3.10% (1) | |||||||
Valley Financial Trust II | ||||||||
Debt Instrument [Line Items] | ||||||||
Date Established | Sep. 26, 2005 | |||||||
Maturity | Dec. 15, 2035 | |||||||
Total Debt Outstanding | $ 7,217 | |||||||
Interest Rate (as percent) | [1] | 4.78% | ||||||
Coupon Structure | 30-day LIBOR + 1.49% (1) | |||||||
Valley Financial Trust III | ||||||||
Debt Instrument [Line Items] | ||||||||
Date Established | Dec. 15, 2006 | |||||||
Maturity | Jan. 30, 2037 | |||||||
Total Debt Outstanding | $ 5,155 | |||||||
Interest Rate (as percent) | [1] | 4.51% | ||||||
Coupon Structure | 30-day LIBOR + 1.73% (1) | |||||||
Southcoast Capital Trust III | ||||||||
Debt Instrument [Line Items] | ||||||||
Date Established | Aug. 05, 2005 | |||||||
Maturity | Sep. 30, 2035 | |||||||
Total Debt Outstanding | $ 10,310 | |||||||
Interest Rate (as percent) | [1] | 5.17% | ||||||
Coupon Structure | 30-day LIBOR + 1.50% (1) | |||||||
Pinnacle Financial Subordinated Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Date Established | Sep. 11, 2019 | |||||||
Maturity | Sep. 15, 2029 | |||||||
Total Debt Outstanding | $ 300,000 | |||||||
Interest Rate (as percent) | [2] | 4.13% | ||||||
|
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