Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2011

Parent Company Only Financial Information [Abstract]

Parent Company Only Financial Information

Note 21.  Parent Company Only Financial Information

The following information presents the condensed balance sheets, statements of operations, and cash flows of Pinnacle Financial as of December 31, 2011 and 2010 and for each of the years in the three-year period ended December 31, 2011:

CONDENSED BALANCE SHEETS

	2011		2010
Assets:
Cash and cash equivalents	$	36,496,508	$	64,144,219
Investments in consolidated subsidiaries		743,704,779		690,046,284
Investment in unconsolidated subsidiaries:
PNFP Statutory Trust I		310,000		310,000
PNFP Statutory Trust II		619,000		619,000
PNFP Statutory Trust III		619,000		619,000
PNFP Statutory Trust IV		928,000		928,000
Other investments		3,400,183		2,693,315
Current income tax receivable		478,134		10,365,547
Other assets		6,439,735		5,822,711
	$	792,995,339	$	775,548,076
Liabilities and stockholders' equity:
Income taxes payable to subsidiaries	$	309,118	$	15,548,096
Subordinated debt and other borrowings		82,476,000		82,476,000
Other liabilities		65,653		66,693
Stockholders' equity		710,144,568		677,457,287
	$	792,995,339	$	775,548,076

CONDENSED STATEMENTS OF OPERATIONS

	2011			2010			2009
Revenues	$	1,228,999		$	1,054,997		$	364,501
Expenses:
Interest expense – subordinated debentures		2,082,836			2,749,085			3,318,982
Stock-based compensation expense		4,435,739			3,981,013			3,251,003
Other expense		669,560			702,728			888,709
Loss before income taxes and equity in undistributed income (loss) of subsidiaries		(5,959,136	)		(6,377,829	)		(7,094,193	)
Income tax benefit		(7,641,435	)		(2,125,035	)		(2,420,852	)
Income (loss) before equity in undistributed income of subsidiaries and accretion on preferred stock discount		1,682,299			(4,252,794	)		(4,673,341	)
Equity in undistributed income (loss) of subsidiaries		42,055,068			(20,047,698	)		(30,826,626	)
Net income (loss)		43,737,367			(24,300,492	)		(35,499,967	)
Preferred stock dividends		4,606,493			4,815,972			4,815,972
Accretion on preferred stock discount		2,058,146			1,326,050			1,113,986
Net income (loss) available to common stockholders	$	37,072,728		$	(30,442,514	)	$	(41,429,925	)

CONDENSED STATEMENTS OF CASH FLOWS

	2011			2010			2009
Operating activities:
Net income (loss)	$	43,737,367		$	(24,300,492	)	$	(35,499,967	)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
Stock-based compensation expense		4,435,739			3,981,013			3,251,003
Loss (gain) on other investments		(313,562	)		(272,116	)		126,181
Decrease in income tax payable, net		(5,351,564	)		12,796,200			(6,996,798	)
(Increase) decrease in other assets		124,239			(2,408,735	)		(3,345,104	)
Increase (decrease) in other liabilities		(1,040	)		(19,339,542	)		19,098,558
Excess tax benefit from stock compensation		(13,819	)		(16,776	)		(53,538	)
Deferred tax (expense) benefit		(636,040	)		842,292			1,161,845
Equity in undistributed (income) loss of subsidiaries		(42,055,068	)		20,047,698			30,826,626
Net cash provided by (used in) operating activities		(73,748	)		(8,670,458	)		8,568,806
Investing activities:
Investment in consolidated subsidiaries:
Banking subsidiaries		-			(25,000,000	)		(80,787,000	)
Other subsidiaries		-			(200,000	)		(100,000	)
Investments in other entities		(393,304	)		(422,076	)		(576,689	)
Net cash used by investing activities		(393,304	)		(25,622,076	)		(81,463,689	)
Financing activities:
Net increase (decrease) in borrowings from line of credit		-			-			(18,000,000	)
Exercise of common stock warrants		-			285,000			300,000
Exercise of common stock options		1,447,362			3,037,064			666,034
Preferred dividends paid		(4,891,840	)		(4,750,000	)		(4,393,751	)
Excess tax benefit from stock compensation arrangements		13,819			16,776			53,538
Partial redemption of preferred shares outstanding		(23,750,000	)		-			-
Issuance of common stock, net of offering costs		-			-			109,027,785
Issuance of preferred stock, net of offering costs		-			-			-
Net cash (used in) provided by financing activities		(27,180,659	)		(1,411,160	)		87,653,606
Net increase (decrease) in cash		(27,647,711	)		(35,703,694	)		14,758,723
Cash and cash equivalents, beginning of year		64,144,219			99,847,913			85,089,190
Cash and cash equivalents, end of year	$	36,496,508		$	64,144,219		$	99,847,913

Pinnacle National is subject to restrictions on the payment of dividends to Pinnacle Financial under federal banking laws and the regulations of the OCC.  Pinnacle National did not pay any dividends to Pinnacle Financial during the years ended December 31, 2011 or 2010.  During the year ended December 31, 2009, Pinnacle National paid dividends of $8,213,000 to Pinnacle Financial.