Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PINNACLE FINANCIAL PARTNERS INC | |
Entity Central Index Key | 0001115055 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 76,958,235 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Assets [Abstract] | ||
Cash and noninterest-bearing due from banks | $ 167,181,000 | $ 137,433,000 |
Restricted Cash, Current | 101,367,000 | 65,491,000 |
Interest-bearing due from banks | 210,389,000 | 516,920,000 |
Federal funds sold and other | 6,560,000 | 1,848,000 |
Cash and cash equivalents | 485,497,000 | 721,692,000 |
Securities available-for-sale, at fair value | 3,250,006,000 | 3,083,686,000 |
Securities held-to-maturity (fair value of $199.0 million and $193.1 million at Mar. 31, 2019 and Dec. 31, 2018, respectively) | 194,043,000 | 194,282,000 |
Consumer loans held-for-sale | 53,658,000 | 34,196,000 |
Commercial loans held-for-sale | 14,456,000 | 15,954,000 |
Loans | 18,174,906,000 | 17,707,549,000 |
Less allowance for loan losses | (87,194,000) | (83,575,000) |
Loans, net | 18,087,712,000 | 17,623,974,000 |
Premises and equipment, net | 262,595,000 | 265,560,000 |
Equity method investment | 239,861,000 | 239,237,000 |
Accrued interest receivable | 79,594,000 | 79,657,000 |
Goodwill | 1,807,121,000 | 1,807,121,000 |
Core deposits and other intangible assets | 43,850,000 | 46,161,000 |
Other real estate owned | 15,077,000 | 15,165,000 |
Other assets | 1,024,388,000 | 904,359,000 |
Total assets | 25,557,858,000 | 25,031,044,000 |
Deposits: | ||
Noninterest-bearing | 4,317,787,000 | 4,309,067,000 |
Interest-bearing | 3,170,570,000 | 3,464,001,000 |
Savings and money market accounts | 7,349,496,000 | 7,607,796,000 |
Time | 3,642,608,000 | 3,468,243,000 |
Total deposits | 18,480,461,000 | 18,849,107,000 |
Securities sold under agreements to repurchase | 100,698,000 | 104,741,000 |
Federal Home Loan Bank advances | 2,121,075,000 | 1,443,589,000 |
Subordinated debt and other borrowings | 484,703,000 | 485,130,000 |
Accrued interest payable | 26,052,000 | 23,586,000 |
Other liabilities | 288,930,000 | 158,951,000 |
Total liabilities | 21,501,919,000 | 21,065,104,000 |
Stockholders' equity: | ||
Preferred stock, no par value; 10.0 million shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, par value $1.00; 180.0 million shares authorized at Mar. 31, 2019 and Dec. 31, 2018; 77.1 million and 77.5 million shares issued and outstanding at Mar. 31, 2019 and Dec. 31, 2018, respectively | 77,064,000 | 77,484,000 |
Additional paid-in capital | 3,079,358,000 | 3,107,431,000 |
Retained earnings | 914,545,000 | 833,130,000 |
Accumulated other comprehensive loss, net of taxes | (15,028,000) | (52,105,000) |
Total stockholders' equity | 4,055,939,000 | 3,965,940,000 |
Total liabilities and stockholders' equity | $ 25,557,858,000 | $ 25,031,044,000 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Securities held-to-maturity, fair value | $ 199,010,000 | $ 193,131,000 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 180,000,000 | 180,000,000 |
Common stock, shares issued (in shares) | 77,064,000 | 77,484,000 |
Common stock, shares outstanding (in shares) | 77,064,000 | 77,484,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest income: | ||
Loans, including fees | $ 229,379,000 | $ 191,214,000 |
Securities: | ||
Taxable | 13,540,000 | 11,222,000 |
Tax-exempt | 11,672,000 | 7,285,000 |
Federal funds sold and other | 3,292,000 | 1,807,000 |
Total interest income | 257,883,000 | 211,528,000 |
Interest expense: | ||
Deposits | 54,217,000 | 23,981,000 |
Securities sold under agreements to repurchase | 145,000 | 130,000 |
Federal Home Loan Bank advances and other borrowings | 16,275,000 | 12,946,000 |
Total interest expense | 70,637,000 | 37,057,000 |
Net interest income | 187,246,000 | 174,471,000 |
Provision for loan losses | 7,184,000 | 6,931,000 |
Net interest income after provision for loan losses | 180,062,000 | 167,540,000 |
Noninterest income: | ||
Total noninterest income | 51,063,000 | 44,183,000 |
Noninterest expense: | ||
Salaries and employee benefits | 70,376,000 | 63,719,000 |
Equipment and occupancy | 19,331,000 | 17,743,000 |
Other real estate expense (income), net | 246,000 | (794,000) |
Marketing and other business development | 2,948,000 | 2,247,000 |
Postage and supplies | 1,892,000 | 2,039,000 |
Amortization of intangibles | 2,311,000 | 2,698,000 |
Merger-related expense | 0 | 5,353,000 |
Other noninterest expense | 16,947,000 | 15,575,000 |
Total noninterest expense | 114,051,000 | 108,580,000 |
Income before income taxes | 117,074,000 | 103,143,000 |
Income tax expense | 23,114,000 | 19,633,000 |
Net income | $ 93,960,000 | $ 83,510,000 |
Per share information: | ||
Basic net income per common share (in dollars per share) | $ 1.22 | $ 1.08 |
Diluted net income per common share (in dollars per share) | $ 1.22 | $ 1.08 |
Weighted average shares outstanding: | ||
Basic (in shares) | 76,803,171 | 77,077,957 |
Diluted (in shares) | 77,127,692 | 77,365,664 |
Service charges on deposit accounts | ||
Noninterest income: | ||
Total noninterest income | $ 8,542,000 | $ 7,905,000 |
Investment services | ||
Noninterest income: | ||
Total noninterest income | 5,404,000 | 5,245,000 |
Insurance sales commissions | ||
Noninterest income: | ||
Total noninterest income | 2,928,000 | 3,119,000 |
Gain on mortgage loans sold, net | ||
Noninterest income: | ||
Total noninterest income | 4,878,000 | 3,744,000 |
Gain on sale of investment securities, net | ||
Noninterest income: | ||
Total noninterest income | (1,960,000) | 30,000 |
Trust fees | ||
Noninterest income: | ||
Total noninterest income | 3,295,000 | 3,117,000 |
Income from equity method investment | ||
Noninterest income: | ||
Total noninterest income | 13,290,000 | 9,360,000 |
Other noninterest income | ||
Noninterest income: | ||
Total noninterest income | $ 14,686,000 | $ 11,663,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 93,960,000 | $ 83,510,000 |
Other comprehensive income (loss), net of tax: | ||
Change in fair value on available-for-sale securities, net of tax | 36,379,000 | (33,483,000) |
Change in fair value of cash flow hedges, net of tax | (523,000) | 1,720,000 |
Amortization of net unrealized losses (gains) on securities transferred from available-for-sale to held-to-maturity, net of tax | 29,000 | (58,000) |
Gain on cash flow hedges reclassified from other comprehensive income into net income, net of tax | (256,000) | (141,000) |
Net loss (gain) on sale of investment securities reclassified from other comprehensive income into net income, net of tax | 1,448,000 | (22,000) |
Total other comprehensive income (loss), net of tax | 37,077,000 | (31,984,000) |
Total comprehensive income | $ 131,037,000 | $ 51,526,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comp. Income (Loss), net |
Balance at Dec. 31, 2017 | $ 3,707,952,000 | $ 77,740,000 | $ 3,115,304,000 | $ 519,144,000 | $ (4,236,000) |
Balance (in shares) at Dec. 31, 2017 | 77,740,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of employee common stock options and related tax benefits | 1,616,000 | $ 87,000 | 1,529,000 | ||
Exercise of employee common stock options and related tax benefits (in shares) | 87,000 | ||||
Common dividends paid | (10,974,000) | (10,974,000) | |||
Issuance of restricted common shares, net of forfeitures | 0 | $ 106,000 | (106,000) | ||
Issuance of restricted common shares, net of forfeitures (in shares) | 106,000 | ||||
Restricted shares withheld for taxes and related tax benefit | (5,265,000) | $ (80,000) | (5,185,000) | ||
Stock-based compensation expense | 4,448,000 | 4,448,000 | |||
Restricted shares withheld for taxes (in shares) | (80,000) | ||||
Net income | 83,510,000 | 83,510,000 | |||
Other comprehensive income (loss) | (31,984,000) | (31,984,000) | |||
Balance at Mar. 31, 2018 | 3,749,303,000 | $ 77,853,000 | 3,115,990,000 | 591,680,000 | (36,220,000) |
Balance (in shares) at Mar. 31, 2018 | 77,853,000 | ||||
Balance at Dec. 31, 2018 | 3,965,940,000 | $ 77,484,000 | 3,107,431,000 | 833,130,000 | (52,105,000) |
Balance (in shares) at Dec. 31, 2018 | 77,484,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of employee common stock options and related tax benefits | 130,000 | $ 5,000 | 125,000 | ||
Exercise of employee common stock options and related tax benefits (in shares) | 5,000 | ||||
Common dividends paid | (12,545,000) | (12,545,000) | |||
Repurchase of common stock (in shares) | (543,000) | ||||
Repurchase of common stock | (30,049,000) | $ (543,000) | (29,506,000) | ||
Issuance of restricted common shares, net of forfeitures | 0 | $ 180,000 | (180,000) | ||
Issuance of restricted common shares, net of forfeitures (in shares) | 180,000 | ||||
Restricted shares withheld for taxes and related tax benefit | (3,487,000) | $ (62,000) | (3,425,000) | ||
Stock-based compensation expense | 4,913,000 | 4,913,000 | |||
Restricted shares withheld for taxes (in shares) | (62,000) | ||||
Net income | 93,960,000 | 93,960,000 | |||
Other comprehensive income (loss) | 37,077,000 | 37,077,000 | |||
Balance at Mar. 31, 2019 | $ 4,055,939,000 | $ 77,064,000 | $ 3,079,358,000 | $ 914,545,000 | $ (15,028,000) |
Balance (in shares) at Mar. 31, 2019 | 77,064,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities: | ||
Net income | $ 93,960,000 | $ 83,510,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization/accretion of premium/discount on securities | 4,309,000 | 4,775,000 |
Depreciation, amortization and accretion | 468,000 | (6,181,000) |
Provision for loan losses | 7,184,000 | 6,931,000 |
Gain on mortgage loans sold, net | (4,878,000) | (3,744,000) |
Investement losses (gains) on sales, net | (1,960,000) | 30,000 |
Stock-based compensation expense | 4,913,000 | 4,448,000 |
Deferred tax expense | 8,702,000 | 8,513,000 |
Gains on dispositions of other real estate and other investments | (50,000) | (481,000) |
Income from equity method investment | (13,290,000) | (9,360,000) |
Dividends received from equity method investment | 12,666,000 | 4,324,000 |
Excess tax benefit from stock compensation | (769,000) | (2,681,000) |
Gain on commercial loans sold, net | (611,000) | (936,000) |
Commercial loans held for sale: | ||
Loans originated | (80,117,000) | (80,193,000) |
Loans sold | 82,225,000 | 87,960,000 |
Consumer loans held for sale: | ||
Loans originated | (243,870,000) | (247,025,000) |
Loans sold | 229,286,000 | 254,266,000 |
Increase in other assets | (6,517,000) | (9,302,000) |
Increase (decrease) in other liabilities | 59,720,000 | (13,901,000) |
Net cash provided by operating activities | 155,291,000 | 80,893,000 |
Activities in securities available-for-sale: | ||
Purchases | (312,605,000) | (590,328,000) |
Sales | 126,579,000 | 14,454,000 |
Maturities, prepayments and calls | 72,813,000 | 81,737,000 |
Activities in securities held-to-maturity: | ||
Maturities, prepayments and calls | 15,000 | 0 |
Increase in loans, net | (462,940,000) | (683,710,000) |
Purchases of software, premises and equipment | (2,110,000) | (8,806,000) |
Proceeds from sales of software, premises and equipment | 53,000 | 164,000 |
Proceeds from sale of other real estate | 840,000 | 4,663,000 |
Purchase of bank owned life insurance policies | (60,000,000) | 0 |
Increase in other investments | (12,582,000) | (836,000) |
Net cash used in investing activities | (649,937,000) | (1,182,662,000) |
Financing activities: | ||
Net (decrease) increase in deposits | (368,466,000) | 52,039,000 |
Net decrease in securities sold under agreements to repurchase | (4,043,000) | (3,398,000) |
Advances from Federal Home Loan Bank: | ||
Issuances | 1,147,500,000 | 762,000,000 |
Payments/maturities | (470,014,000) | (105,014,000) |
Decrease in other borrowings, net | (520,000) | (30,000) |
Principal payments of finance lease obligation | (55,000) | (39,000) |
Exercise of common stock options, net of repurchase of restricted shares | (3,357,000) | (3,649,000) |
Payments for Repurchase of Common Stock | (30,049,000) | 0 |
Common stock dividends paid | (12,545,000) | (10,974,000) |
Net cash provided by financing activities | 258,451,000 | 690,935,000 |
Net decrease in cash, cash equivalents, and restricted cash | (236,195,000) | (410,834,000) |
Cash, cash equivalents, and restricted cash, beginning of period | 721,692,000 | 779,597,000 |
Cash, cash equivalents, and restricted cash, end of period | $ 485,497,000 | $ 368,763,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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 bank holding company whose primary business is conducted by its wholly-owned subsidiary, Pinnacle Bank. Pinnacle Bank is a commercial bank headquartered in Nashville, Tennessee. Pinnacle Financial completed its acquisitions of CapitalMark Bank & Trust (CapitalMark), Magna Bank (Magna), Avenue Financial Holdings, Inc. (Avenue) and BNC Bancorp (BNC) on July 31, 2015, September 1, 2015, July 1, 2016 and June 16, 2017, respectively. Pinnacle Financial and Pinnacle Bank also collectively hold a 49% interest in Bankers Healthcare Group, LLC (BHG), a full-service commercial loan provider to healthcare and other professional practices. Pinnacle Bank provides a full range of banking services, including investment, mortgage, insurance, and comprehensive wealth management services, in its 11 primarily urban markets within Tennessee, the Carolinas and Virginia. Basis of Presentation — The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions to Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles (U.S. GAAP). All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes appearing in Pinnacle Financial's Annual Report on Form 10-K for the year ended December 31, 2018 (2018 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. Subordinated Debt and 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 loan losses, determination of any impairment of intangible assets and the valuation of deferred tax assets. There have been no significant changes to Pinnacle Financial's significant accounting policies as disclosed in the 2018 10-K. Cash Flow Information — Supplemental cash flow information addressing certain cash and noncash transactions for the three months ended March 31, 2019 and March 31, 2018 was as follows (in thousands): For the three months ended 2019 2018 Cash Transactions: Interest paid $ 68,403 $ 34,909 Income taxes paid, net 550 425 Noncash Transactions: Loans charged-off to the allowance for loan losses 6,068 8,669 Loans foreclosed upon and transferred to other real estate owned 624 232 Loans foreclosed upon and transferred to other assets 87 392 Right-of-use asset recognized during the period in exchange for lease obligations (1) 81,249 — (1) Includes $79.9 million recognized upon initial adoption of ASU 2016-02 on January 1, 2019. Income Per Common Share — Basic net income per common share (EPS) is computed by dividing net income by the weighted average common shares outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted. The difference between basic and diluted weighted average shares outstanding is attributable to common stock options, restricted share awards, and restricted share unit awards. The dilutive effect of outstanding options, common stock appreciation rights, restricted share awards, and restricted share unit awards is reflected in diluted EPS by application of the treasury stock method. The following is a summary of the basic and diluted net income per share calculations for the three months ended March 31, 2019 and 2018 (in thousands, except per share data): Three months ended 2019 2018 Basic net income per share calculation: Numerator - Net income $ 93,960 $ 83,510 Denominator - Weighted average common shares outstanding 76,803 77,078 Basic net income per common share $ 1.22 $ 1.08 Diluted net income per share calculation: Numerator – Net income $ 93,960 $ 83,510 Denominator - Weighted average common shares outstanding 76,803 77,078 Dilutive shares contingently issuable 325 288 Weighted average diluted common shares outstanding 77,128 77,366 Diluted net income per common share $ 1.22 $ 1.08 Recently Adopted Accounting Pronouncements — In March 2019, the FASB issued Accounting Standards Update No. 2019-01, Leases (Topic 842): Codification Improvements. The amendments in this ASU (i) reinstate the exception in Topic 842 for lessors that are not manufacturers or dealers to use cost as the fair value of the underlying asset, (ii) state that lessors that are depository and lending institutions should present principal payments received under sales type and direct financing leases within investing activities, and (iii) exempt Topic 842 from certain transition related interim disclosure requirements. ASU 2019-01 became effective for Pinnacle Financial on January 1, 2019 and did not have a material impact on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases which requires recognition in the statement of financial position of lease right of use assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The guidance requires that a lessee should recognize lease assets and lease liabilities as compared to previous GAAP that did not require lease assets and lease liabilities to be recognized for operating leases. In July 2016, the FASB issued Accounting Standards Update 2018-10, Codification Improvements to Topic 842, Leases which provided technical corrections and improvements to ASU 2016-02. In July 2016, the FASB issued Accounting Standards Update 2018-11, Leases (Topic 842): Targeted Improvements which provided an optional transition method to adopt the new requirements of ASU 2016-02 as of the adoption date with no adjustment to the presentation or disclosure of comparative prior periods included in the financial statements in the period of adoption. Pinnacle Financial has elected this optional transition method and has presented periods prior to adoption under the prior lease guidance of ASC Topic 840. In December 2018, the FASB issued Accounting Standards Update 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors . ASU 2018-20 permits lessors to account for certain taxes as lessee costs, permits lessors to exclude from revenue certain lessor costs paid by lessees directly to third parties, and requires lessors to allocate certain variable payments to lease and non-lease components. ASU 2016-02 and the subsequently issued ASUs related to Topic 842 became effective for Pinnacle Financial on January 1, 2019. As part of the adoption of these updates, Pinnacle Financial has elected the following practical expedients: 1) to not reassess whether existing contracts are or contain a lease, 2) to not reassess lease classification for existing leases, 3) to not reassess initial direct costs, 4) to not separate lease components from nonlease components for real estate leases, and 5) to not recognize short term leases (12 months or less) on the balance sheet. See Note 12 for additional detail related to lease amounts recognized as of March 31, 2019 under Topic 842. In February 2018, the FASB issued Accounting Standards Update 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The amendments in this ASU addressed the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the lower federal corporate tax rate included in the Tax Cuts and Jobs Act issued December 22, 2017 (Tax Act). These amendments allow an entity to make a reclassification from other comprehensive income to retained earnings for the difference between the historical corporate income tax rate and the lower corporate income tax rate included in the Tax Act. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Pinnacle Financial has elected not to adopt this standard due to its insignificant impact on Pinnacle Financial's consolidated financial position. Newly Issued not yet Effective Accounting Standards — In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment to simplify how entities other than private companies, such as public business entities and not-for-profit entities, are required to test goodwill for impairment by eliminating the comparison of the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. The amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those periods. If this standard had been effective as of the date of the financial statements included in this report, there would have been no impact on Pinnacle Financial's consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (CECL) , which introduces the current expected credit losses methodology. Among other things, CECL requires the measurement of all expected credit losses for financial assets, including loans and held-to-maturity debt securities, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The new model will require institutions to calculate all probable and estimable losses that are expected to be incurred through the financial asset's entire life through a provision for credit losses, including loans obtained as a result of any acquisition not deemed to be purchased credit deteriorated (PCD). CECL also requires the allowance for credit losses for PCD loans to be determined in a manner similar to that of other financial assets measured at amortized cost; however, the initial allowance will be added to the purchase price rather than recorded as provision expense. The disclosure of credit quality indicators related to the amortized cost of financing receivables will be further disaggregated by year of origination (or vintage). Institutions are to apply the changes through a cumulative-effect adjustment to their retained earnings as of the beginning of the first reporting period in which the standard is effective. The amendments are effective for fiscal years beginning after December 15, 2019. Early application is permitted for fiscal years beginning after December 15, 2018. Pinnacle Financial is currently assessing the impact of the new guidance on its consolidated financial statements. An increase in the overall allowance for loan losses is likely upon adoption in order to provide for expected credit losses over the life of the loan portfolio. Other than those pronouncements discussed above and those which have been recently adopted, we do not believe there were any other recently issued accounting pronouncements that are expected to materially impact Pinnacle Financial. 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 March 31, 2019 through the date of the issued financial statements. |
Equity method investment
Equity method investment | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity method investment | Note 2. Equity method investment A summary of BHG's financial position as of March 31, 2019 and December 31, 2018 and results of operations as of and for the three months ended March 31, 2019 and 2018 , were as follows (in thousands): As of March 31, 2019 December 31, 2018 Assets $ 520,254 $ 459,816 Liabilities 410,404 324,211 Equity interests 109,850 135,605 Total liabilities and equity $ 520,254 $ 459,816 For the three months ended 2019 2018 Revenues $ 62,817 $ 43,750 Net income $ 27,135 $ 19,003 At March 31, 2019 , technology, trade name and customer relationship intangibles, net of related amortization, totaled $10.2 million compared to $10.7 million as of December 31, 2018 . Amortization expense of $475,000 was included for the three months ended March 31, 2019 compared to $693,000 for the same period in the prior year. Accretion income of $683,000 was included in the three months ended March 31, 2019 compared to $742,000 for the same period in the prior year. During the three months ended March 31, 2019 , Pinnacle Financial and Pinnacle Bank received dividends from BHG of $12.7 million in the aggregate compared to $4.3 million for the same period in the prior year. Earnings from BHG are included in Pinnacle Financial's consolidated tax return. Profits from intercompany transactions are eliminated. No loans were purchased from BHG by Pinnacle Bank for the three month periods ended March 31, 2019 or 2018. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 are summarized as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2019: Securities available-for-sale: U.S. Treasury securities $ 48,612 $ 5 $ 5 $ 48,612 U.S. government agency securities 68,219 25 1,275 66,969 Mortgage-backed securities 1,372,248 3,798 16,325 1,359,721 State and municipal securities 1,423,313 30,366 2,948 1,450,731 Asset-backed securities 269,941 1,026 1,957 269,010 Corporate notes and other 56,062 302 1,401 54,963 $ 3,238,395 $ 35,522 $ 23,911 $ 3,250,006 Securities held-to-maturity: State and municipal securities $ 194,043 $ 4,979 $ 12 $ 199,010 $ 194,043 $ 4,979 $ 12 $ 199,010 December 31, 2018: Securities available-for-sale: U.S. Treasury securities $ 30,325 $ — $ 25 $ 30,300 U.S. government agency securities 71,456 49 1,346 70,159 Mortgage-backed securities 1,336,469 3,110 28,634 1,310,945 State and municipal securities 1,244,471 3,785 18,602 1,229,654 Asset-backed securities 379,107 820 4,345 375,582 Corporate notes and other 69,399 170 2,523 67,046 $ 3,131,227 $ 7,934 55,475 $ 3,083,686 Securities held-to-maturity: State and municipal securities $ 194,282 $ 152 $ 1,303 $ 193,131 $ 194,282 $ 152 $ 1,303 $ 193,131 In the third quarter of 2018, Pinnacle Financial transferred, at fair value, $179.8 million of municipal securities from the available-for-sale portfolio to the held-to-maturity portfolio. The related net unrealized after tax losses of $2.2 million remained in accumulated other comprehensive income (loss) and will be amortized over the remaining life of the securities, offsetting the related amortization of discount on the transferred securities. No gains or losses were recognized at the time of the transfer. At March 31, 2019 , approximately $1.2 billion of securities within Pinnacle Financial's investment portfolio were pledged to secure either public funds and other deposits or securities sold under agreements to repurchase. At March 31, 2019 , repurchase agreements comprised of secured borrowings totaled $100.7 million and were secured by $100.7 million of pledged U.S. government agency securities, municipal securities, asset backed securities, and corporate debentures. As the fair value of securities pledged to secure repurchase agreements may decline, Pinnacle Financial regularly evaluates its need to pledge additional securities to remain adequately secured. The amortized cost and fair value of debt securities as of March 31, 2019 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage- and asset-backed securities since the mortgages and assets underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories in the following summary (in thousands): Available-for-sale Held-to-maturity March 31, 2019: Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 63,866 $ 63,860 $ 325 $ 326 Due in one year to five years 22,546 22,533 5,679 5,678 Due in five years to ten years 103,720 103,272 7,962 8,003 Due after ten years 1,406,074 1,431,610 180,077 185,003 Mortgage-backed securities 1,372,248 1,359,721 — — Asset-backed securities 269,941 269,010 — — $ 3,238,395 $ 3,250,006 $ 194,043 $ 199,010 At March 31, 2019 and December 31, 2018 , the following investments had unrealized losses. The table below classifies these investments according to the term of the unrealized losses of less than twelve months or twelve months or longer (in thousands): 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 March 31, 2019 U.S. Treasury securities $ 29,824 $ 3 $ 248 $ 2 $ 30,072 $ 5 U.S. government agency securities 6,631 58 51,280 1,217 57,911 1,275 Mortgage-backed securities 82,112 565 987,424 15,760 1,069,536 16,325 State and municipal securities 161,772 2,622 80,686 509 242,458 3,131 Asset-backed securities 152,062 1,534 26,675 423 178,737 1,957 Corporate notes 10,672 719 19,871 682 30,543 1,401 Total temporarily-impaired securities $ 443,073 $ 5,501 $ 1,166,184 $ 18,593 $ 1,609,257 $ 24,094 At December 31, 2018 U.S. Treasury securities $ 30,054 $ 22 $ 246 $ 3 $ 30,300 $ 25 U.S. government agency securities 13,697 328 42,539 1,018 56,236 1,346 Mortgage-backed securities 203,299 2,134 882,231 26,500 1,085,530 28,634 State and municipal securities 805,821 18,643 198,610 4,078 1,004,431 22,721 Asset-backed securities 268,677 4,118 11,828 227 280,505 4,345 Corporate notes 26,272 1,538 25,915 985 52,187 2,523 Total temporarily-impaired securities $ 1,347,820 $ 26,783 $ 1,161,369 $ 32,811 $ 2,509,189 $ 59,594 The applicable dates for determining when securities were in an unrealized loss position were March 31, 2019 and December 31, 2018 . As such, it is possible that a security had a market value that exceeded its amortized cost on other days during the past twelve-month pe riods ended March 31, 2019 and December 31, 2018 , but is not in the "Investments with an Unrealized Loss of less t han 12 months" category above. As shown in the tables above, including both available-for-sale and held-to-maturity investment securities, at March 31, 2019 , Pinnacle Financial had approximately $24.1 million in unrealized losses on $1.6 billion of securities. The unrealized losses associated with $179.8 million of municipal securities transferred from the available-for-sale portfolio to the held-to-maturity portfolio in 2018 represent unrealized losses since the date of purchase, independent of the impact associated with changes in the cost basis upon transfer between portfolios. The unrealized losses associated with these investment securities are driven by changes in interest rates and are not due to the credit quality of the securities. These securities will continue to be monitored as a part of Pinnacle Financial's ongoing impairment analysis. Management evaluates the financial performance of the issuers on a quarterly basis to determine if it is probable that the issuers can make all contractual principal and interest payments. Because Pinnacle Financial currently does not intend to sell those securities that have an unrealized loss at March 31, 2019 , and it is not more-likely-than-not that Pinnacle Financial will be required to sell the securities before recovery of their amortized cost bases, which may be maturity, Pinnacle Financial does not consider these securities to be other-than-temporarily impaired at March 31, 2019 . Periodically, available-for-sale securities may be sold or the composition of the portfolio realigned to improve yields, quality or marketability, or to implement changes in investment or asset/liability strategy, including maintaining collateral requirements and raising funds for liquidity purposes. Additionally, if an available-for-sale security loses its investment grade or tax-exempt status, the underlying credit support is terminated or collection otherwise becomes uncertain based on factors known to management, Pinnacle Financial will consider selling the security, but will review each security on a case-by-case basis as these factors become known. Consistent with the investment policy, during the three months ended March 31, 2019 available-for-sale securities of approximately $ 126.6 million were sold and net unrealized losses, net of tax, of $1.4 million were reclassified from accumulated other comprehensive income into net income. The carrying values of Pinnacle Financial's investment securities could decline in the future if the financial condition of issuers deteriorates and management determines it is probable that Pinnacle Financial will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future. Additionally, there is a risk that other-than-temporary impairment charges may occur in the future if management's intention to hold these securities to maturity and/or recovery changes. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Note 4. Loans and Allowance for Loan Losses For financial reporting purposes, Pinnacle Financial classifies its loan portfolio based on the underlying collateral utilized to secure each loan. This classification is consistent with those utilized in the Quarterly Report of Condition and Income filed by Pinnacle Bank with the Federal Deposit Insurance Corporation (FDIC). Pinnacle Financial uses five loan categories: commercial real estate mortgage, consumer real estate mortgage, construction and land development, commercial and industrial, and consumer and other. • Commercial real estate mortgage loans . Commercial real estate mortgage loans are categorized as such based on investor exposures where repayment is largely dependent upon the operation, refinance, or sale of the underlying real estate. Commercial real estate mortgage loans also includes owner-occupied commercial real estate which Pinnacle Financial believes shares a similar risk profile to Pinnacle Financial's commercial and industrial products. • Consumer real estate mortgage loans . Consumer real estate mortgage consists primarily of loans secured by 1-4 family residential properties, including home equity lines of credit. • Construction and land development loans . Construction and land development loans include loans where the repayment is dependent on the successful operation of the related real estate project. Construction and land development loans include 1-4 family construction projects and commercial construction endeavors such as warehouses, apartments, office and retail space and land acquisition and development. • Commercial and industrial loans . Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. • Consumer and other loans . Consumer and other loans include all loans issued to individuals not included in the consumer real estate mortgage classification. Examples of consumer and other loans are automobile loans, credit cards and loans to finance education, among others. 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 six distinct ratings categories for loans that represent specific attributes. Pinnacle Financial believes that its categories follow those used by Pinnacle Bank's primary regulators. At March 31, 2019 , approximately 81.1% 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. Risk ratings are subject to continual review by a financial advisor and a senior credit officer. At least annually, Pinnacle Financial's credit procedures require that every risk rated loan of $1.0 million or more be subject to a formal credit risk review process. Each loan's risk rating is also subject to review by Pinnacle Financial's independent loan review department, which reviews a substantial portion of Pinnacle Financial's risk rated portfolio annually. Included in the coverage are independent loan reviews of loans in targeted higher-risk portfolio segments such as certain commercial and industrial loans, land loans and/or loan types in certain geographies. The following table presents Pinnacle Financial's loan balances by primary loan classification and the amount within each risk rating category. Pass rated loans include all credits other than those included in special mention, substandard, substandard-nonaccrual and doubtful-nonaccrual which are defined as follows: • 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 following table outlines the amount of each loan classification categorized into each risk rating category as of March 31, 2019 and December 31, 2018 (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer Total March 31, 2019 Pass $ 7,252,503 $ 2,830,701 $ 2,083,602 $ 5,259,503 $ 349,945 $ 17,776,254 Special Mention 51,552 6,916 7,843 41,980 710 109,001 Substandard (1) 76,171 17,880 3,350 96,049 57 193,507 Substandard-nonaccrual 38,920 32,131 2,775 21,988 330 96,144 Doubtful-nonaccrual — — — — — — Total loans $ 7,419,146 $ 2,887,628 $ 2,097,570 $ 5,419,520 $ 351,042 $ 18,174,906 Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer Total December 31, 2018 Pass $ 6,998,485 $ 2,787,570 $ 2,059,376 $ 5,148,726 $ 352,516 $ 17,346,673 Special Mention 55,932 7,902 4,334 24,284 711 93,163 Substandard (1) 78,202 20,906 5,358 75,351 62 179,879 Substandard-nonaccrual 32,335 28,069 3,387 23,060 983 87,834 Doubtful-nonaccrual — — — — — — Total loans $ 7,164,954 $ 2,844,447 $ 2,072,455 $ 5,271,421 $ 354,272 $ 17,707,549 (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 $190.3 million at March 31, 2019 , compared to $176.3 million at December 31, 2018 . Loans acquired with deteriorated credit quality are recorded pursuant to the provisions of ASC 310-30, and are referred to as purchase credit impaired loans. The following table provides a rollforward of purchase credit impaired loans from December 31, 2018 through March 31, 2019 (in thousands): Gross Carrying Value Accretable Yield Nonaccretable Yield Net Carrying Value December 31, 2018 $ 42,837 $ (114 ) $ (17,394 ) $ 25,329 Acquisition — — — — Year-to-date settlements (2,951 ) 12 1,312 (1,627 ) March 31, 2019 $ 39,886 $ (102 ) $ (16,082 ) $ 23,702 Certain of these loans have been deemed to be collateral dependent and, as such, no accretable yield has been recorded for these loans. The carrying value is adjusted for additional draws, pursuant to contractual arrangements, offset by loan paydowns. Year-to-date settlements include both loans that were charged-off as well as loans that were paid off, typically as a result of refinancings at other institutions. Impaired loans include nonaccrual loans, troubled debt restructurings, and other loans deemed to be impaired but that continue to accrue interest. The following tables detail the recorded investment, unpaid principal balance and related allowance of Pinnacle Financial's impaired loans at March 31, 2019 and December 31, 2018 by loan classification (in thousands): At March 31, 2019 At December 31, 2018 Recorded investment Unpaid principal balances Related allowance Recorded investment Unpaid principal balances Related allowance Impaired loans with an allowance: Commercial real estate – mortgage $ 18,539 $ 18,543 $ 1,521 $ 14,114 $ 14,124 $ 724 Consumer real estate – mortgage 24,668 24,784 2,381 19,864 19,991 1,443 Construction and land development 868 864 55 581 579 28 Commercial and industrial 8,802 8,773 1,461 9,252 9,215 1,441 Consumer and other 331 352 100 983 1,005 328 Total $ 53,208 $ 53,316 $ 5,518 $ 44,794 $ 44,914 $ 3,964 Impaired loans without an allowance: Commercial real estate – mortgage $ 16,674 $ 16,678 $ — $ 14,724 $ 14,739 $ — Consumer real estate – mortgage 10,431 10,466 — 7,247 7,271 — Construction and land development — — — 1,786 1,786 — Commercial and industrial 15,691 15,712 — 14,595 14,627 — Consumer and other — — — — — — Total $ 42,796 $ 42,856 $ — $ 38,352 $ 38,423 $ — Total impaired loans $ 96,004 $ 96,172 $ 5,518 $ 83,146 $ 83,337 $ 3,964 For the three months ended March 31, 2019 , the average balance of impaired loans, was $89.6 million, compared to $64.2 million for the same period in 2018 . Pinnacle Financial's policy is that 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 that once a loan is placed on nonaccrual status each subsequent payment is reviewed on a case-by-case basis to determine if the payment should be applied to interest or principal pursuant to regulatory guidelines. As detailed in the following table, Pinnacle Financial recognized $87,000 in interest income from cash payments received on nonaccrual loans during the three months ended March 31, 2019 compared to $101,000 during the three months ended March 31, 2018 . Had these nonaccruing loans been on accruing status, interest income would have been $1.6 million higher for the three months ended March 31, 2019 compared to $1.4 million higher for the three months ended March 31, 2018 . The following table details the average recorded investment and the amount of interest income recognized on a cash basis for the three months ended March 31, 2019 and 2018 , respectively, of impaired loans by loan classification (in thousands): For the three months ended 2019 2018 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Impaired loans with an allowance: Commercial real estate – mortgage $ 16,327 $ — $ 5,119 $ — Consumer real estate – mortgage 22,266 — 8,792 — Construction and land development 724 — 1,451 — Commercial and industrial 9,027 — 11,220 — Consumer and other 657 — 390 — Total $ 49,001 $ — $ 26,972 $ — Impaired loans without an allowance: Commercial real estate – mortgage $ 15,699 $ 87 $ 15,375 $ 101 Consumer real estate – mortgage 8,839 — 4,369 — Construction and land development 893 — 1,322 — Commercial and industrial 15,143 — 16,185 — Consumer and other — — — — Total $ 40,574 $ 87 $ 37,251 $ 101 Total impaired loans $ 89,575 $ 87 $ 64,223 $ 101 At March 31, 2019 and December 31, 2018 , there were $5.5 million and $5.9 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. During the three months ended March 31, 2019 and 2018 , there were no additional troubled debt restructurings or troubled debt restructurings that subsequently defaulted within twelve months of the restructuring. At both March 31, 2019 and December 31, 2018, the allowance for loan losses included no allowance specifically related to accruing troubled debt restructurings, which are classified as impaired loans pursuant to U.S. GAAP, but which continued to accrue interest at contractual rates at those dates. In addition to the loan metrics above, 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 March 31, 2019 with the comparative exposures for December 31, 2018 (in thousands): March 31, 2019 Outstanding Principal Balances Unfunded Commitments Total exposure Total Exposure at December 31, 2018 Lessors of nonresidential buildings $ 3,208,737 $ 894,936 $ 4,103,673 $ 3,932,059 Lessors of residential buildings 1,038,462 335,860 1,374,322 1,484,697 New Housing For-Sale Builders 509,750 586,983 1,096,733 1,100,989 Hotels (except Casino Hotels) and Motels 825,627 137,885 963,512 920,001 Additionally, 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 March 31, 2019 and December 31, 2018 , Pinnacle Bank’s construction and land development loans as a percentage of total risk-based capital were 84.1% and 85.2% , 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 282.5% and 277.7% as of March 31, 2019 and December 31, 2018 , 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 March 31, 2019 , 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 to below the 100% and 300% thresholds. The table below presents past due balances by loan classification and segment at March 31, 2019 and December 31, 2018 , allocated between accruing and nonaccrual status (in thousands): Accruing Nonaccruing March 31, 2019 30-89 days past due and accruing 90 days or more past due and accruing Total past due and accruing Current and accruing Purchase credit impaired Nonaccrual (1) Nonaccruing purchase credit impaired Total loans Commercial real estate: Owner-occupied $ 8,302 $ — $ 8,302 $ 2,583,109 $ 2,577 $ 22,436 $ 1,117 $ 2,617,541 All other 6,569 — 6,569 4,774,555 5,119 12,601 2,761 4,801,605 Consumer real estate – mortgage 10,982 39 11,021 2,840,793 3,683 27,336 4,795 2,887,628 Construction and land development 795 — 795 2,092,563 1,437 868 1,907 2,097,570 Commercial and industrial 9,068 1,323 10,391 5,386,830 306 21,993 — 5,419,520 Consumer and other 2,736 620 3,356 347,356 — 330 — 351,042 Total $ 38,452 $ 1,982 $ 40,434 $ 18,025,206 $ 13,122 $ 85,564 $ 10,580 $ 18,174,906 Accruing Nonaccruing December 31, 2018 30-89 days past due and accruing 90 days or more past due and accruing Total past due and accruing Current and accruing Purchase credit impaired Nonaccrual (1) Nonaccruing purchase credit impaired Total loans Commercial real estate: Owner-occupied $ 10,170 $ — $ 10,170 $ 2,623,700 $ 2,664 $ 16,025 $ 874 $ 2,653,433 All other 1,586 — 1,586 4,488,840 5,659 12,634 2,802 4,511,521 Consumer real estate – mortgage 18,059 — 18,059 2,794,630 3,689 22,564 5,505 2,844,447 Construction and land development 3,759 — 3,759 2,063,201 2,108 2,020 1,367 2,072,455 Commercial and industrial 21,451 1,082 22,533 5,225,205 623 23,022 38 5,271,421 Consumer and other 3,276 476 3,752 349,537 — 983 — 354,272 Total $ 58,301 $ 1,558 $ 59,859 $ 17,545,113 $ 14,743 $ 77,248 $ 10,586 $ 17,707,549 (1) Approximately $47.4 million and $52.5 million of nonaccrual loans as of March 31, 2019 and December 31, 2018 , respectively, were performing pursuant to their contractual terms at those dates . The following table details the changes in the allowance for loan losses for the three months ended March 31, 2019 and 2018 , respectively, by loan classification (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Unallocated Total Three months ended March 31, 2019: Balance at December 31, 2018 $ 26,946 $ 7,670 $ 11,128 $ 31,731 $ 5,423 $ 677 $ 83,575 Charged-off loans (534 ) (350 ) — (3,352 ) (1,832 ) — (6,068 ) Recovery of previously charged-off loans 72 369 122 1,598 342 — 2,503 Provision for loan losses 3,683 680 (335 ) 2,722 870 (436 ) 7,184 Balance at March 31, 2019 $ 30,167 $ 8,369 $ 10,915 $ 32,699 $ 4,803 $ 241 $ 87,194 Three months ended March 31, 2018: Balance at December 31, 2017 $ 21,188 $ 5,031 $ 8,962 $ 24,863 $ 5,874 $ 1,322 $ 67,240 Charged-off loans (728 ) (336 ) (2 ) (2,540 ) (5,063 ) — (8,669 ) Recovery of previously charged-off loans 1,396 666 565 888 1,187 — 4,702 Provision for loan losses 832 (261 ) 591 3,437 3,478 (1,146 ) 6,931 Balance at March 31, 2018 $ 22,688 $ 5,100 $ 10,116 $ 26,648 $ 5,476 $ 176 $ 70,204 The following table details the allowance for loan losses and recorded investment in loans by loan classification and by impairment evaluation method as of March 31, 2019 and December 31, 2018 , respectively (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Unallocated Total March 31, 2019 Allowance for Loan Losses: Collectively evaluated for impairment $ 28,646 $ 5,988 $ 10,860 $ 31,238 $ 4,703 $ 81,435 Individually evaluated for impairment 1,521 2,381 55 1,461 100 5,518 Loans acquired with deteriorated credit quality (1) — — — — — — Total allowance for loan losses $ 30,167 $ 8,369 $ 10,915 $ 32,699 $ 4,803 $ 241 $ 87,194 Loans: Collectively evaluated for impairment $ 7,372,359 $ 2,844,051 $ 2,093,358 $ 5,394,721 $ 350,711 $ 18,055,200 Individually evaluated for impairment 35,213 35,099 868 24,493 331 96,004 Loans acquired with deteriorated credit quality 11,574 8,478 3,344 306 — 23,702 Total loans $ 7,419,146 $ 2,887,628 $ 2,097,570 $ 5,419,520 $ 351,042 $ 18,174,906 December 31, 2018 Allowance for Loan Losses: Collectively evaluated for impairment $ 26,222 $ 6,227 $ 11,100 $ 30,290 $ 5,095 $ 78,934 Individually evaluated for impairment 724 1,443 28 1,441 328 3,964 Loans acquired with deteriorated credit quality (1) — — — — — — Total allowance for loan losses $ 26,946 $ 7,670 $ 11,128 $ 31,731 $ 5,423 $ 677 $ 83,575 Loans: Collectively evaluated for impairment $ 7,124,117 $ 2,808,142 $ 2,066,613 $ 5,246,913 $ 353,289 $ 17,599,074 Individually evaluated for impairment 28,838 27,111 2,367 23,847 983 83,146 Loans acquired with deteriorated credit quality 11,999 9,194 3,475 661 — 25,329 Total loans $ 7,164,954 $ 2,844,447 $ 2,072,455 $ 5,271,421 $ 354,272 $ 17,707,549 (1) Loans acquired with deteriorated credit quality are recorded at fair value at the time of acquisition. An allowance for loan losses is recorded only in the event of subsequent credit deterioration. The adequacy of the allowance for loan losses is assessed at the end of each calendar quarter. The level of the allowance is based upon evaluation of the loan portfolio, current asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers' ability to repay (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, historical loss experience, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. The allowance for loan losses for purchased loans is calculated similarly to the method utilized for legacy Pinnacle Bank loans. Pinnacle Financial's accounting policy is to compare the computed allowance for loan losses for purchased loans on a loan-by-loan basis to any remaining fair value adjustment. If the computed allowance is greater than the remaining fair value adjustment, the excess is added to the allowance for loan losses by a charge to the provision for loan losses. At March 31, 2019 , Pinnacle Bank had granted loans and other extensions of credit amounting to approximately $38.4 million to current directors, executive officers, and their related entities, of which $18.1 million had been drawn upon. At December 31, 2018 , Pinnacle Bank had granted loans and other extensions of credit amounting to approximately $37.9 million to directors, executive officers, and their related entities, of which approximately $18.3 million had been drawn upon. None of these loans to directors, executive officers, and their related entities were impaired at March 31, 2019 or December 31, 2018 . At March 31, 2019 , Pinnacle Financial had approximately $14.5 million in commercial loans held for sale compared to $16.0 million at December 31, 2018, 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. Residential Lending At March 31, 2019 , Pinnacle Financial had approximately $45.5 million of mortgage loans held-for-sale compared to approximately $31.8 million at December 31, 2018 . Total loan volumes sold during the three months ended March 31, 2019 were approximately $193.8 million compared to approximately $247.1 million for the three months ended March 31, 2018 . During the three months ended March 31, 2019 , Pinnacle Financial recognized $4.9 million in gains on the sale of these loans, net of commissions paid, compared to $3.7 million, net of commissions paid, during the three months ended March 31, 2018 . These mortgage loans held-for-sale are originated internally and are primarily to borrowers in Pinnacle Bank's geographic markets. These sales are typically on a mandatory basis to investors that follow conventional government sponsored entities (GSE) and the Department of Housing and Urban Development/U.S. Department of Veterans Affairs (HUD/VA) guidelines. Each purchaser of a mortgage loan held-for-sale has specific guidelines and criteria for sellers of loans and the risk of credit loss with regard to the principal amount of the loans sold is generally transferred to the purchasers upon sale. While the loans are sold without recourse, the purchase agreements require Pinnacle Bank to make certain representations and warranties regarding the existence and sufficiency of file documentation and the absence of fraud by borrowers or other third parties such as appraisers in connection with obtaining the loan. If it is determined that the loans sold were in breach of these representations or warranties, Pinnacle Bank has obligations to either repurchase the loan for the unpaid principal balance and related investor fees or make the purchaser whole for the economic benefits of the loan. To date, Pinnacle Bank's liability pursuant to the terms of these representations and warranties has been insignificant to Pinnacle Bank. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
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 $5.1 million at March 31, 2019 compared to $2.8 million at March 31, 2018 . No change was recorded to the unrecognized tax benefit related to uncertain tax positions in each of the three month periods ended March 31, 2019 and 2018 . Pinnacle Financial's policy is to recognize interest and/or penalties related to income tax matters in income tax expense. For both the three months ended March 31, 2019 and 2018, respectively, there were no interest and penalties recorded in the income statement. Pinnacle Financial's effective tax rate for the three months ended March 31, 2019 was 19.7% compared to 19.0% for the three months ended March 31, 2018 . The difference between the effective tax rate and the federal and state income tax statutory rate of 26.14% at March 31, 2019 and 2018 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 our captive insurance subsidiary, offset in part by the limitation on deductibility of meals and entertainment expense, non-deductible executive compensation and non-deductible FDIC premiums. Also impacting income tax expense for the three months ended March 31, 2019 were excess windfall tax benefits of $769,000 recognized upon the lapse of restrictions on stock awards and stock options exercises, compared to $2.7 million for the three months ended March 31, 2018 . |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 6. Commitments and Contingent Liabilities In the normal course of business, Pinnacle Bank has entered into off-balance sheet financial instruments which include commitments to extend credit (i.e., including unfunded lines of credit) and standby letters of credit. Commitments to extend credit are usually the result of lines of credit granted to existing borrowers under agreements that the total outstanding indebtedness will not exceed a specific amount during the term of the indebtedness. Typical borrowers are commercial concerns that use lines of credit to supplement their treasury management functions, and thus their total outstanding indebtedness may fluctuate during any time period based on the seasonality of their business and the resultant timing of their cash flows. Other typical lines of credit are related to home equity loans granted to consumers. Commitments to extend credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. At March 31, 2019 , these commitments amounted to $7.4 billion , of which approximately $1.0 billion related to home equity lines of credit. Standby letters of credit are generally issued on behalf of an applicant (Pinnacle Bank's 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 Bank under certain prescribed circumstances. Subsequently, Pinnacle Bank would then seek reimbursement from the applicant pursuant to the terms of the standby letter of credit. At March 31, 2019 , these commitments amounted to $191.3 million . Pinnacle Bank 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 both March 31, 2019 and December 31, 2018 , Pinnacle Financial had accrued $2.9 million for the inherent risks associated with these off-balance sheet commitments. Various legal claims also arise from time to time in the normal course of business. In the opinion of management, the resolution of these claims outstanding at March 31, 2019 will not have a material adverse impact on Pinnacle Financial's consolidated financial condition, operating results or cash flows. |
Stock Options and Restricted Sh
Stock Options and Restricted Shares | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options and Restricted Shares | Note 7. Stock Options and Restricted Shares The shareholders of Pinnacle Financial adopted the 2018 Omnibus Equity Incentive Plan (the "2018 Plan") at the annual shareholder's meeting on April 17, 2018. 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 March 31, 2019 , there were approximately 1.3 million shares available for issuance under the 2018 Plan. The BNC Bancorp 2013 Amended and Restated Omnibus Stock Incentive Plan (the "BNC Plan") was assumed by Pinnacle Financial in connection with its merger with BNC. As of March 31, 2019 , the BNC Plan had approximately 9,000 shares remaining available for issuance to existing associates that were previously BNC associates. No new awards may be granted under plans other than the 2018 Plan except for shares remaining available for issuance to the former BNC associates pursuant to the BNC Plan. Upon the acquisition of CapitalMark, Pinnacle Financial assumed approximately 858,000 stock options under the CapitalMark Option Plan. No further shares remain available for issuance under the CapitalMark Option Plan. At March 31, 2019 , all of the remaining options outstanding were granted under the CapitalMark Option Plan. Common Stock Options A summary of the stock option activity within the equity incentive plans during the three months ended March 31, 2019 and information regarding expected vesting, contractual terms remaining, intrinsic values and other matters is as follows: Number Weighted-Average Exercise Price Weighted-Average Contractual Remaining Term (in years) Aggregate Intrinsic Value (000's) Outstanding at December 31, 2018 176,709 $ 22.77 2.23 $ 4,123 (1) Granted — Exercised (5,200 ) Forfeited — Outstanding at March 31, 2019 171,509 $ 22.70 3.06 $ 5,488 (2) Options exercisable at March 31, 2019 171,509 $ 22.70 3.06 $ 5,488 (2) (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $46.10 per common share at December 31, 2018 for the 176,709 options that were in-the-money at December 31, 2018 . (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 $54.70 per common share at March 31, 2019 for the 171,509 options that were in-the-money at March 31, 2019 . 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 three months ended March 31, 2019 is as follows: Number Grant Date Weighted-Average Cost Unvested at December 31, 2018 692,806 $ 55.19 Shares awarded 192,110 Restrictions lapsed and shares released to associates/directors (212,247 ) Shares forfeited (1) (11,970 ) Unvested at March 31, 2019 660,699 $ 53.30 (1) Represents shares forfeited due to employee termination and/or retirement. No shares were forfeited due to failure to meet performance targets. Pinnacle Financial has granted restricted share awards to associates, (including members of executive management) and outside directors with a combination of time and, in the case of the annual award to the members of the Company's leadership team, performance 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 three months ended March 31, 2019 . The table reflects the life-to-date activity for these awards: Grant Year Group (1) Vesting Period in years Shares awarded Restrictions Lapsed and shares released to participants Shares Forfeited by participants (4) Shares Unvested Time Based Awards 2019 Associates (2) 3 - 5 175,561 169 2,616 172,776 Outside Director Awards (3) 2019 Outside directors 1 16,549 — — 16,549 (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 performance-based vesting 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 February 29, 2020 based on each individual board member meeting their attendance goals for the various board and board committee meetings to which each member was scheduled to attend. (4) These shares represent forfeitures resulting from recipients whose employment or board membership is terminated during the year-to-date period ended March 31, 2019 . 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 Share Units The following table details the restricted share unit awards (all of which are performance units) outstanding at March 31, 2019 : Units Awarded Grant year Named Executive Officers (NEOs) (1) Leadership Team other than NEOs Applicable Performance Periods associated with each tranche (fiscal year) Service period per tranche (in years) Subsequent holding period per tranche (in years) Period in which units to be settled into shares of common stock (2) 2019 166,211-249,343 52,244 2019 2 3 2024 2020 2 2 2024 2021 2 1 2024 2018 96,878-145,339 25,990 2018 2 3 2023 2019 2 2 2023 2020 2 1 2023 2017 72,537-109,339 24,916 2017 2 3 2022 2018 2 2 2022 2019 2 1 2022 2016 73,474-110,223 26,683 2016 2 3 2021 2017 2 2 2021 2018 2 1 2021 2015 58,200-101,850 28,378 2015 2 3 2020 2016 2 2 2020 2017 2 1 2020 (1) The named executive officers are awarded a range of awards that may be earned based on attainment of goals between a target level of performance and a maximum level of performance. (2) Restricted share unit awards granted in 2019, 2018, 2017, 2016 and 2015, if earned, will be settled in shares of Pinnacle Financial Common Stock in the periods noted in the table, if Pinnacle Bank's ratio of non-performing assets to the assets is less than amounts established in the applicable award agreement. Stock compensation expense, net of the impact of income taxes, related to both restricted share awards and restricted share units for the three months ended March 31, 2019 was $4.9 million compared to $4.4 million for the three months ended March 31, 2018 . As of the March 31, 2019 , the total compensation cost related to unvested restricted share awards and restricted share units not yet recognized was $ 49.1 million. This expense is expected to be recognized over a weighted-average period of 1.77 years. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 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. For derivatives not designated as hedges, the gain or loss is recognized in current period earnings. Non-hedge derivatives Pinnacle Financial enters into interest rate swaps (swaps) to facilitate customer transactions and meet their financing needs. Upon entering into these instruments to meet customer needs, Pinnacle Financial enters into offsetting positions in order to minimize the risk to Pinnacle Financial. These swaps 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 March 31, 2019 and December 31, 2018 is included in the following table (in thousands): March 31, 2019 December 31, 2018 Balance Sheet Location Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Interest rate swap agreements: Assets Other assets $ 1,096,649 $ 24,555 $ 1,059,724 $ 22,273 Liabilities Other liabilities 1,096,649 (24,696 ) 1,059,724 (22,401 ) Total $ 2,193,298 $ (141 ) $ 2,119,448 $ (128 ) The effects of Pinnacle Financial's interest rate swaps to facilitate customers' transactions on the income statement during the three months ended March 31, 2019 and 2018 were as follows: Amount of Gain (Loss) Recognized in Income Location of Gain (Loss) Recognized in Income Three Months Ended March 31, 2019 2018 Interest rate swap agreements Other noninterest income $ (13 ) $ (20 ) 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, 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. The hedging strategy converts the LIBOR-based variable interest rate on forecasted borrowings to a fixed interest rate and is used in an effort to protect Pinnacle Financial from floating interest rate variability. A summary of Pinnacle Financial's cash flow hedge relationships as of March 31, 2019 and December 31, 2018 are as follows (in thousands): March 31, 2019 December 31, 2018 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 Liability derivatives Interest rate swap agreements Other liabilities 3.10 3.09% 3 month LIBOR $ 99,000 $ (2,466 ) $ 99,000 $ (1,757 ) The effects of Pinnacle Financial's cash flow hedge relationships on the statement of comprehensive income (loss) during the three months ended March 31, 2019 and 2018 were as follows: Amount of Gain Recognized in Other Comprehensive Income (Loss) Three Months Ended March 31, Liability derivatives 2019 2018 Interest rate swap agreements $ (523 ) $ 1,720 The cash flow hedges were determined to be highly effective during the periods presented and as a result qualify for hedge accounting treatment. The hedge would no longer be considered effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence or Pinnacle Financial discontinues hedge accounting. Pinnacle Financial expects the hedges to continue to be highly effective and qualify for hedge accounting during the remaining terms of the swaps. Gains totaling $ 256,000 and $ 141,000 were reclassified from accumulated other comprehensive income into net income during the three months ended March 31, 2019 or 2018 , respectively, related to previously terminated derivatives. No amounts are expected to be reclassified from accumulated other comprehensive income into net income over the next twelve months related to derivatives that are currently on the balance sheet. 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 securities available-for-sale and fixed rate prepayable loans. The hedging strategy on securities converts the fixed interest rates to LIBOR-based variable interest rates. 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. Pinnacle Financial also utilizes interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of the loans. A specified portion of the prepayable loans have been designated as the hedged assets under the "last-of-layer" method. Such hedging designations are allowed on the portion of a closed portfolio of prepayable assets that is not expected to be affected by prepayments, defaults, and other factors affecting the timing and amount of cash flows. A summary of Pinnacle Financial's fair value hedge relationships as of March 31, 2019 and December 31, 2018 are as follows (in thousands): March 31, 2019 December 31, 2018 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 Liability derivatives Interest rate swap agreements - securities Other liabilities 7.80 3.08% 3 month LIBOR $ 477,905 $ (25,076 ) $ 477,905 $ (14,796 ) Interest rate swap agreements - loans Other liabilities 2.39 2.77% 3 month LIBOR 900,000 (11,891 ) 900,000 (7,037 ) 4.26 2.88% $ 1,377,905 $ (36,967 ) $ 1,377,905 $ (21,833 ) The effects of Pinnacle Financial's fair value hedge relationships on the income statement during the three months ended March 31, 2019 and 2018 were as follows: Location of Gain (Loss) on Derivative Amount of Gain (Loss) Recognized in Income Three Months Ended March 31, Liability derivatives 2019 2018 Interest rate swap agreements - securities Interest income on securities $ (10,280 ) $ 1,579 Interest rate swap agreements - loans Interest income on loans $ (4,854 ) $ — Location of Gain (Loss) on Hedged Item Amount of Gain (Loss) Recognized in Income Three Months Ended March 31, Liability derivatives 2019 2018 Interest rate swap agreements - securities Interest income on securities $ 10,280 $ (1,579 ) Interest rate swap agreements - loans Interest income on loans $ 4,854 $ — The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at March 31, 2019 and December 31, 2018 : Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Line item on the balance sheet Securities available-for-sale $ 528,900 $ 513,116 $ 25,076 $ 14,796 Loans (1) $ 911,891 $ 907,037 $ 11,891 $ 7,037 (1) The carrying amount as shown represents the designated last-of-layer. At March 31, 2019 and December 31, 2018, the total amortized cost basis of the closed portfolio of loans designated in these hedging relationships was $ 2.7 billion. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
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 ongoing reviews by senior investment managers. A variety of factors are reviewed and monitored to assess positive and negative changes in valuation including, but not limited to, current operating performance and future expectations of the particular investment, industry valuations of comparable public companies and changes in market outlook and the third-party financing environment over time. In determining valuation adjustments resulting from the investment review process, emphasis is placed on current company performance and market conditions. These investments are included in Level 3 of the valuation hierarchy 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, cash flow hedge agreements 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. Impaired loans – A loan is classified as impaired when it is probable Pinnacle Financial will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Impaired loans are measured based on the present value of expected payments using the loan's original effective rate as the discount rate, the loan's observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. If the recorded investment in the impaired loan exceeds the measure of fair value, a valuation allowance may be established as a component of the allowance for loan losses or the difference may be recognized as a charge-off. Impaired 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 construction for which Pinnacle Financial believes it has adequate collateral. Upon foreclosure, the property is recorded at the lower of cost or fair value, based on appraised value, less selling costs estimated as of the date acquired with any loss recognized as a charge-off through the allowance for loan losses. Additional OREO losses for subsequent valuation downward adjustments are determined on a specific property basis and are included as a component of noninterest expense along with holding costs. Any gains or losses realized at the time of disposal are also reflected in noninterest expense, as applicable. OREO is included in Level 3 of the valuation hierarchy due to the lack of observable market inputs into the determination of fair value 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 and the cash flow hedge and interest rate locks associated with the funding for its mortgage loan originations. The fair value of these liabilities is based on Pinnacle Financial's pricing models that utilize observable market inputs and is reflected within Level 2 of the valuation hierarchy. The following tables present financial instruments measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 , by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands): 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) March 31, 2019 Investment securities available-for-sale: U.S. Treasury securities $ 48,612 $ — $ 48,612 $ — U.S. government agency securities 66,969 — 66,969 — Mortgage-backed securities 1,359,721 — 1,359,721 — State and municipal securities 1,450,731 — 1,437,001 13,730 Agency-backed securities 269,010 — 269,010 — Corporate notes and other 54,963 — 54,963 — Total investment securities available-for-sale $ 3,250,006 $ — $ 3,236,276 $ 13,730 Other investments 52,806 — 24,699 28,107 Other assets 27,943 — 27,943 — Total assets at fair value $ 3,330,755 $ — $ 3,288,918 $ 41,837 Other liabilities $ 64,746 $ — $ 64,746 $ — Total liabilities at fair value $ 64,746 $ — $ 64,746 $ — December 31, 2018 Investment securities available-for-sale: U.S. Treasury securities $ 30,300 $ — $ 30,300 $ — U.S. government agency securities 70,159 — 70,159 — Mortgage-backed securities 1,310,945 — 1,310,945 — State and municipal securities 1,229,654 — 1,215,059 14,595 Agency-backed securities 375,582 — 375,582 — Corporate notes and other 67,046 — 67,046 — Total investment securities available-for-sale 3,083,686 — 3,069,091 14,595 Other investments 50,791 — 24,369 26,422 Other assets 24,524 — 24,524 — Total assets at fair value $ 3,159,001 $ — $ 3,117,984 $ 41,017 Other liabilities $ 46,550 $ — $ 46,550 $ — Total liabilities at fair value $ 46,550 $ — $ 46,550 $ — The following table presents assets measured at fair value on a nonrecurring basis as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Total carrying value in the consolidated balance sheet Quoted market prices in an active market (Level 1) Models with significant observable market parameters (Level 2) Models with significant unobservable market parameters (Level 3) Total gains (losses) for the year-to-date period then ended Other real estate owned $ 15,077 $ — $ — $ 15,077 $ 50 Impaired loans, net (1) 47,690 — — 47,690 (1,113 ) Total $ 62,767 $ — $ — $ 62,767 $ (1,063 ) December 31, 2018 Other real estate owned $ 15,165 $ — $ — $ 15,165 $ (84 ) Impaired loans, net (1) 40,830 — — 40,830 (1,214 ) Total $ 55,995 $ — $ — $ 55,995 $ (1,298 ) (1) Amount is net of valuation allowance of $5.5 million and $4.0 million at March 31, 2019 and December 31, 2018 , respectively, as required by ASC 310-10, "Receivables." In the case of the investment securities portfolio, Pinnacle Financial monitors the portfolio to ascertain when transfers between levels have been affected. The nature of the remaining assets and liabilities is such that transfers in and out of any level are expected to be rare. For the three months ended March 31, 2019 , there were no transfers between Levels 1, 2 or 3. The table below includes a rollforward of the balance sheet amounts for the three months ended March 31, 2019 and March 31, 2018 (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): For the three months ended March 31, 2019 2018 Available-for-sale Securities Other Other liabilities Available-for-sale Securities Other Other liabilities Fair value, beginning of period $ 14,595 $ 26,422 $ — $ 17,029 $ 28,874 $ — Total realized gains included in income 30 448 — 31 512 — Changes in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at March 31 (496 ) — — (666 ) — — Purchases — 1,670 — — 870 — Issuances — — — — — — Settlements (399 ) (433 ) — (1,168 ) (468 ) — Transfers out of Level 3 — — — — — — Fair value, end of period $ 13,730 $ 28,107 — $ 15,226 $ 29,788 $ — Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at March 31 $ 30 $ 448 $ — $ 31 $ 512 $ — The following methods and assumptions were used by Pinnacle Financial in estimating its fair value disclosures for financial instruments that are not measured at fair value. In cases where quoted market prices are not available, fair values are based on estimates using discounted cash flow models. Those models are significantly affected by the assumptions used, including the discount rates, estimates of future cash flows and borrower creditworthiness. The fair value estimates presented herein are based on pertinent information available to management as of March 31, 2019 and December 31, 2018 . Such amounts have not been revalued for purposes of these consolidated financial statements since those dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. Securities held-to-maturity - Estimated fair values for investment securities are based on quoted market prices where available. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs or quoted prices of securities with similar characteristics. Loans - The fair value of Pinnacle Financial's loan portfolio includes a credit risk factor in the determination of the fair value of its loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. Pinnacle Financial's loan portfolio is initially fair valued using a segmented approach. Pinnacle Financial divides its loan portfolio into the following categories: variable rate loans, impaired loans and all other loans. The results are then adjusted to account for credit risk. The values derived from the discounted cash flow approach for our performing loan portfolio incorporate credit risk to determine the exit price. Fair values for impaired loans are estimated using discounted cash flow models or are based on the fair value of the underlying collateral. Purchased loans, including loans acquired through a merger, are initially recorded at fair value on the date of purchase. Purchased loans that contain evidence of post-origination credit deterioration as of the purchase date are carried at the net present value of expected future cash flows. All other purchased loans are recorded at their initial fair value, and adjusted for subsequent advances, pay downs, amortization or accretion of any fair value premium or discount on purchase, charge-offs and any other adjustment to carrying value. Loans held-for-sale - Loans held-for-sale are carried at the lower of cost or fair value. The estimate of fair value is based on pricing models and other information. Deposits, securities sold under agreements to repurchase, Federal Home Loan Bank (FHLB) advances, subordinated debt and other borrowings - The fair value of demand deposits, savings deposits and securities sold under agreements to repurchase are derived from a selection of market transactions reflecting our peer group. Fair values for certificates of deposit, FHLB advances and subordinated debt are estimated using discounted cash flow models, using current market interest rates offered on certificates, advances and other borrowings with similar remaining maturities. Off-balance sheet instruments - The fair values of Pinnacle Financial's off-balance-sheet financial instruments are based on fees charged to enter into similar agreements. However, commitments to extend credit do not represent a significant value to Pinnacle Financial until such commitments are funded. The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at March 31, 2019 and December 31, 2018 . This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as non-interest bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity (in thousands): March 31, 2019 Carrying/ Notional Amount Estimated Fair Value (1) Quoted market prices in an active market (Level 1) Models with significant observable market parameters (Level 2) Models with significant unobservable market parameters (Level 3) Financial assets: Securities held-to-maturity $ 194,043 $ 199,010 $ — $ 199,010 $ — Loans, net 18,087,712 17,916,901 — — 17,916,901 Consumer loans held-for-sale 53,658 54,613 — 54,613 — Commercial loans held-for-sale 14,456 14,713 — 14,713 — Financial liabilities: Deposits and securities sold under agreements to repurchase 18,581,159 17,977,271 — — 17,977,271 Federal Home Loan Bank advances 2,121,075 2,109,609 — — 2,109,609 Subordinated debt and other borrowings 484,703 465,615 — — 465,615 Off-balance sheet instruments: Commitments to extend credit (2) 7,397,175 1,729 — — 1,729 Standby letters of credit (3) 191,279 1,135 — — 1,135 December 31, 2018 Financial assets: Securities held-to-maturity $ 194,282 $ 193,131 $ — $ 193,131 $ — Loans, net 17,623,974 17,288,795 — — 17,288,795 Consumer loans held-for-sale 34,196 34,929 — 34,929 — Commercial loans held-for-sale 15,954 16,296 — 16,296 — Financial liabilities: Deposits and securities sold under agreements to repurchase 18,953,848 18,337,848 — — 18,337,848 Federal Home Loan Bank advances 1,443,589 1,432,003 — — 1,432,003 Subordinated debt and other borrowings 485,130 464,616 — — 464,616 Off-balance sheet instruments: Commitments to extend credit (2) 6,921,689 1,733 — — 1,733 Standby letters of credit (3) 177,475 1,131 — — 1,131 (1) Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. (2) At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at both March 31, 2019 and December 31, 2018 , Pinnacle Financial included in other liabilities $1.7 million representing the inherent risks associated with these off-balance sheet commitments. (3) At both March 31, 2019 and December 31, 2018 , the aggregate fair value of Pinnacle Financial's standby letters of credit was $1.1 million. These amounts represent the unamortized fee associated with these standby letters of credit and are included in the consolidated balance sheets of Pinnacle Financial and are believed to approximate fair value. These fair values will decrease over time as the existing standby letters of credit approach their expiration dates. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Matters | Regulatory Matters Pursuant to Tennessee banking law, Pinnacle Bank may not, without the prior consent of the Commissioner of the Tennessee Department of Financial Institutions (TDFI), pay any dividends to Pinnacle Financial in a calendar year in excess of the total of Pinnacle Bank's retained net income for that year plus the retained net income for the preceding two years. 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 capital conservation buffer. During the three months ended March 31, 2019 , Pinnacle Bank paid $39.1 million in dividends to Pinnacle Financial. As of March 31, 2019, Pinnacle Bank could pay approximately $637.4 million of additional dividends to Pinnacle Financial without prior approval of the Commissioner of the TDFI. Since the fourth quarter of 2018, Pinnacle Financial has paid a quarterly common stock dividend of $0.16 per share. The amount and timing of all future dividend payments by Pinnacle Financial, if any, is subject to discretion of Pinnacle Financial's board of directors and will depend on Pinnacle Financial's earnings, capital position, financial condition and other factors, including new regulatory capital requirements, as they become known to Pinnacle Financial. Pinnacle Financial and Pinnacle Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Pinnacle Financial and Pinnacle Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Pinnacle Financial's and Pinnacle Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require Pinnacle Financial and its banking subsidiary to maintain minimum amounts and ratios of common equity Tier 1 capital to risk-weighted assets, Tier 1 capital to risk-weighted assets, total risk-based capital to risk-weighted assets and Tier 1 capital to average assets. The final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel III rules) became effective for Pinnacle Financial on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in on January 1, 2019. The minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: (i) a common equity Tier 1 capital ratio of 4.5% ; (ii) a Tier 1 risk-based capital ratio of 6% ; (iii) a total risk-based capital ratio of 8% ; and (iv) a Tier 1 leverage ratio of 4% for all institutions. The Basel III rules also established a capital conservation buffer of 2.5% (which was phased in over three years) above the regulatory minimum risk-based capital ratios. The capital conservation buffer was phased in beginning in January 2016 at 0.625% and increased each year by a like percentage until fully implemented in January 2019. Upon full implementation in January 2019, minimum risk-based capital ratios including the capital conservation buffer are: i) a common equity Tier 1 capital ratio of 7%, ii) a Tier 1 risk-based capital ratio of 8.5%, and iii) a total risk-based capital ratio of 10.5%. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes, as of March 31, 2019 , that Pinnacle Financial and Pinnacle Bank met all capital adequacy requirements to which they are subject. To be categorized as well-capitalized under applicable banking regulations, Pinnacle Financial and Pinnacle Bank must maintain 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 capital conservation buffer, are presented in the following table (in thousands): Actual Minimum Capital Requirement Minimum To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio At March 31, 2019 Total capital to risk weighted assets: Pinnacle Financial $ 2,635,562 12.0 % $ 1,760,157 8.0 % NA NA Pinnacle Bank $ 2,495,127 11.4 % $ 1,756,333 8.0 % $ 2,195,416 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 2,078,454 9.4 % $ 1,320,118 6.0 % NA NA Pinnacle Bank $ 2,277,027 10.4 % $ 1,317,250 6.0 % $ 1,756,333 8.0 % Common equity Tier 1 capital to risk weighted assets Pinnacle Financial $ 2,078,331 9.4 % $ 990,088 4.5 % NA NA Pinnacle Bank $ 2,276,904 10.4 % $ 987,937 4.5 % $ 1,427,020 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 2,078,454 9.0 % $ 924,540 4.0 % NA NA Pinnacle Bank $ 2,277,027 9.9 % $ 922,810 4.0 % $ 1,153,512 5.0 % Actual Minimum Capital Requirement Minimum To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio At December 31, 2018 Total capital to risk weighted assets: Pinnacle Financial $ 2,580,143 12.2 % $ 1,691,017 8.0 % NA NA Pinnacle Bank $ 2,432,419 11.5 % $ 1,686,046 8.0 % $ 2,107,558 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 2,024,193 9.6 % $ 1,268,263 6.0 % NA NA Pinnacle Bank $ 2,218,003 10.5 % $ 1,264,535 6.0 % $ 1,686,046 8.0 % Common equity Tier 1 capital to risk weighted assets Pinnacle Financial $ 2,024,070 9.6 % $ 951,197 4.5 % NA NA Pinnacle Bank $ 2,217,880 10.5 % $ 948,401 4.5 % $ 1,369,912 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 2,024,193 8.9 % $ 909,102 4.0 % NA NA Pinnacle Bank $ 2,218,003 9.8 % $ 906,185 4.0 % $ 1,132,731 5.0 % (*) Average assets for the above calculations were based on the most recent quarter. |
Subordinated Debt and Other bor
Subordinated Debt and Other borrowings | 3 Months Ended |
Mar. 31, 2019 | |
Subordinated Debt [Abstract] | |
Subordinated Debt and Other borrowings | Subordinated Debt and Other borrowings Pinnacle Financial has twelve wholly-owned subsidiaries that are statutory business trusts created for the exclusive purpose of issuing 30 -year capital trust preferred securities. These securities qualify as Tier 2 capital. Pinnacle Financial also has a $75.0 million revolving credit facility, of which it had borrowed $20.0 million as of March 31, 2019 . Pinnacle Financial and the lender amended this credit facility on April 24, 2019 to, among other things, extend the maturity date to April 24, 2020, reduce the applicable margin calculation related to interest rates paid on borrowings thereunder and change the unused line fee from 0.35% to 0.30%. Additionally, Pinnacle Financial and Pinnacle Bank have entered into, or assumed in connection with acquisitions, certain other subordinated debt agreements as outlined below as of March 31, 2019 and, with respect to the legacy Pinnacle Financial indebtedness, as fully described in the 2018 Form 10-K (in thousands): Name Date Maturity Total Debt Outstanding Interest Rate at Coupon Structure Trust preferred securities Pinnacle Statutory Trust I December 29, 2003 December 30, 2033 $ 10,310 5.41 % 30-day LIBOR + 2.80% Pinnacle Statutory Trust II September 15, 2005 September 30, 2035 20,619 3.99 % 30-day LIBOR + 1.40% Pinnacle Statutory Trust III September 7, 2006 September 30, 2036 20,619 4.24 % 30-day LIBOR + 1.65% Pinnacle Statutory Trust IV October 31, 2007 September 30, 2037 30,928 5.46 % 30-day LIBOR + 2.85% BNC Capital Trust I April 3, 2003 April 15, 2033 5,155 6.04 % 30-day LIBOR + 3.25% BNC Capital Trust II March 11, 2004 April 7, 2034 6,186 5.64 % 30-day LIBOR + 2.85% Name Date Maturity Total Debt Outstanding Interest Rate at Coupon Structure BNC Capital Trust III September 23, 2004 September 23, 2034 5,155 5.19 % 30-day LIBOR + 2.40% BNC Capital Trust IV September 27, 2006 December 31, 2036 7,217 4.29 % 30-day LIBOR + 1.70% Valley Financial Trust I June 26, 2003 June 26, 2033 4,124 5.71 % 30-day LIBOR + 3.10% Valley Financial Trust II September 26, 2005 December 15, 2035 7,217 4.10 % 30-day LIBOR + 1.49% Valley Financial Trust III December 15, 2006 January 30, 2037 5,155 4.48 % 30-day LIBOR + 1.73% Southcoast Capital Trust III August 5, 2005 September 30, 2035 10,310 4.09 % 30-day LIBOR + 1.50% Subordinated Debt Pinnacle Bank Subordinated Notes July 30, 2015 July 30, 2025 60,000 4.88 % Fixed (1) Pinnacle Bank Subordinated Notes March 10, 2016 July 30, 2025 70,000 4.88 % Fixed (1) Avenue Subordinated Notes December 29, 2014 December 29, 2024 20,000 6.75 % Fixed (2) Pinnacle Financial Subordinated Notes November 16, 2016 November 16, 2026 120,000 5.25 % Fixed (3) BNC Subordinated Notes September 25, 2014 October 1, 2024 60,000 5.50 % Fixed (4) BNC Subordinated Note October 15, 2013 October 15, 2023 9,360 7.49 % 30-day LIBOR + 5.00% (5) Other Borrowings Revolving credit facility (6) April 26, 2018 April 25, 2019 20,000 4.24 % 30-day LIBOR + 1.75% Debt issuance costs and fair value adjustments (7,652 ) Total subordinated debt and other borrowings $ 484,703 (1) Migrates to three month LIBOR + 3.128% beginning July 30, 2020 through the end of the term. (2) Migrates to three month LIBOR + 4.95% beginning January 1, 2020 through the end of the term. (3) Migrates to three month LIBOR + 3.884% beginning November 16, 2021 through the end of the term. (4) Migrates to three month LIBOR + 3.59% beginning October 1, 2019 through the end of the term if not redeemed on that date. (5) Coupon structure includes a floor of 5.5% and a cap of 9.5% . (6) Borrowing capacity on the revolving credit facility is $75.0 million . At March 31, 2019 , there was $20.0 million outstanding under this facility. During the three months ended March 31, 2019, an unused fee of 0.35% was assessed on the average daily unused amount of the loan. |
Leases Leases
Leases Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Pinnacle Financial has entered into various operating leases, primarily for office space and branch facilities, and through acquisition assumed a single finance lease for a branch facility. Upon adoption of FASB ASU 2016-02 Leases on January 1, 2019, Pinnacle Financial began recognizing right-of-use assets and lease liabilities related to its operating leases. Prior to ASU 2016-02, such assets and liabilities were recognized only for capital leases (referred to as finance leases under the amendments of ASU 2016-02). In accordance with the optional transition method allowed by ASU 2016-11, comparative prior period information included within this note is presented in accordance with guidance in effect during those periods. Right-of-use assets and lease liabilities related to Pinnacle Finacial's operating and finance leases are as follows at March 31, 2019 (in thousands): Balance Sheet Location March 31, 2019 Right-of-use assets Operating leases (1) Other assets $ 73,792 Finance leases Premises and equipment, net 2,156 Total right-of-use assets $ 75,948 Lease liabilities Operating leases Other liabilities $ 81,768 Finance leases Other liabilities 3,415 Total lease liabilities $ 85,183 (1) Presented net of tenant improvement allowances of $1.7 million and purchase accounting fair value adjustments of $2.9 million . Lease costs during the three months ended March 31, 2019 related to these leases were as follows (in thousands): Three Months Ended March 31, 2019 Operating lease cost $ 3,440 Short-term lease cost 14 Finance lease cost: Interest on lease liabilities 62 Amortization of right-of-use asset 56 Sublease income (249 ) Net lease cost $ 3,323 Rent expense related to leases during the three months ended March 31, 2018 was $3.2 million . Cash flows related to leases during the three months ended March 31, 2019 were as follows (in thousands): Three Months Ended March 31, 2019 Operating cash flows related to operating leases $ 3,381 Operating cash flows related to finance leases 62 Financing cash flows related to finance leases 55 Lease liabilities are determined based on lease term discounted at an effective rate of interest. Certain lease agreements contain renewal options which are considered in the determination of the lease term if they are deemed reasonably certain to be exercised. Discount rates used to determine the present value of lease payments are based on secured borrowing rates as of the commencement date of the lease. The following table presents the weighted average remaining lease term and weighted average discount rate used to determine lease liabilities at March 31, 2019 (in thousands): March 31, 2019 Weighted average remaining lease term: Operating leases 9.74 years Finance leases 9.58 years Weighted average discount rate: Operating leases 3.31 % Finance leases 7.22 % The following table presents a maturity analysis of undiscounted cash flows due under operating leases and finance leases and a reconciliation to total operating lease liabilities and finance lease liabilities at March 31, 2019 (in thousands): Operating Leases Finance Leases 2019 (1) $ 10,122 $ 353 2020 12,469 470 2021 12,038 470 2022 9,688 470 2023 8,874 479 Thereafter 43,967 2,548 97,158 4,790 Less: Imputed interest (15,390 ) (1,375 ) Total lease liabilities $ 81,768 $ 3,415 (1) Includes the period from April 1, 2019 - December 31, 2019. At December 31, 2018 , the future minimum lease payments due under operating leases and capital leases, and a reconciliation to total capital lease liabilities were as follows (in thousands): Operating Leases Capital Leases 2019 $ 12,889 $ 470 2020 11,805 470 2021 11,527 470 2022 9,410 470 2023 8,820 479 Thereafter 43,730 2,548 Future minimum lease payments $ 98,181 4,907 Less: Imputed interest (1,437 ) Total capital lease liabilities $ 3,470 |
Leases | Leases Pinnacle Financial has entered into various operating leases, primarily for office space and branch facilities, and through acquisition assumed a single finance lease for a branch facility. Upon adoption of FASB ASU 2016-02 Leases on January 1, 2019, Pinnacle Financial began recognizing right-of-use assets and lease liabilities related to its operating leases. Prior to ASU 2016-02, such assets and liabilities were recognized only for capital leases (referred to as finance leases under the amendments of ASU 2016-02). In accordance with the optional transition method allowed by ASU 2016-11, comparative prior period information included within this note is presented in accordance with guidance in effect during those periods. Right-of-use assets and lease liabilities related to Pinnacle Finacial's operating and finance leases are as follows at March 31, 2019 (in thousands): Balance Sheet Location March 31, 2019 Right-of-use assets Operating leases (1) Other assets $ 73,792 Finance leases Premises and equipment, net 2,156 Total right-of-use assets $ 75,948 Lease liabilities Operating leases Other liabilities $ 81,768 Finance leases Other liabilities 3,415 Total lease liabilities $ 85,183 (1) Presented net of tenant improvement allowances of $1.7 million and purchase accounting fair value adjustments of $2.9 million . Lease costs during the three months ended March 31, 2019 related to these leases were as follows (in thousands): Three Months Ended March 31, 2019 Operating lease cost $ 3,440 Short-term lease cost 14 Finance lease cost: Interest on lease liabilities 62 Amortization of right-of-use asset 56 Sublease income (249 ) Net lease cost $ 3,323 Rent expense related to leases during the three months ended March 31, 2018 was $3.2 million . Cash flows related to leases during the three months ended March 31, 2019 were as follows (in thousands): Three Months Ended March 31, 2019 Operating cash flows related to operating leases $ 3,381 Operating cash flows related to finance leases 62 Financing cash flows related to finance leases 55 Lease liabilities are determined based on lease term discounted at an effective rate of interest. Certain lease agreements contain renewal options which are considered in the determination of the lease term if they are deemed reasonably certain to be exercised. Discount rates used to determine the present value of lease payments are based on secured borrowing rates as of the commencement date of the lease. The following table presents the weighted average remaining lease term and weighted average discount rate used to determine lease liabilities at March 31, 2019 (in thousands): March 31, 2019 Weighted average remaining lease term: Operating leases 9.74 years Finance leases 9.58 years Weighted average discount rate: Operating leases 3.31 % Finance leases 7.22 % The following table presents a maturity analysis of undiscounted cash flows due under operating leases and finance leases and a reconciliation to total operating lease liabilities and finance lease liabilities at March 31, 2019 (in thousands): Operating Leases Finance Leases 2019 (1) $ 10,122 $ 353 2020 12,469 470 2021 12,038 470 2022 9,688 470 2023 8,874 479 Thereafter 43,967 2,548 97,158 4,790 Less: Imputed interest (15,390 ) (1,375 ) Total lease liabilities $ 81,768 $ 3,415 (1) Includes the period from April 1, 2019 - December 31, 2019. At December 31, 2018 , the future minimum lease payments due under operating leases and capital leases, and a reconciliation to total capital lease liabilities were as follows (in thousands): Operating Leases Capital Leases 2019 $ 12,889 $ 470 2020 11,805 470 2021 11,527 470 2022 9,410 470 2023 8,820 479 Thereafter 43,730 2,548 Future minimum lease payments $ 98,181 4,907 Less: Imputed interest (1,437 ) Total capital lease liabilities $ 3,470 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 (2018 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. Subordinated Debt and 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 | Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for loan losses, determination of any impairment of intangible assets and the valuation of deferred tax assets. There have been no significant changes to Pinnacle Financial's significant accounting policies as disclosed in the 2018 10-K. |
Income Per Common Share | Income Per Common Share — Basic net income per common share (EPS) is computed by dividing net income by the weighted average common shares outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted. The difference between basic and diluted weighted average shares outstanding is attributable to common stock options, restricted share awards, and restricted share unit awards. The dilutive effect of outstanding options, common stock appreciation rights, restricted share awards, and restricted share unit awards is reflected in diluted EPS by application of the treasury stock method. The following is a summary of the basic and diluted net income per share calculations for the three months ended March 31, 2019 and 2018 (in thousands, except per share data): Three months ended 2019 2018 Basic net income per share calculation: Numerator - Net income $ 93,960 $ 83,510 Denominator - Weighted average common shares outstanding 76,803 77,078 Basic net income per common share $ 1.22 $ 1.08 Diluted net income per share calculation: Numerator – Net income $ 93,960 $ 83,510 Denominator - Weighted average common shares outstanding 76,803 77,078 Dilutive shares contingently issuable 325 288 Weighted average diluted common shares outstanding 77,128 77,366 Diluted net income per common share $ 1.22 $ 1.08 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements — In March 2019, the FASB issued Accounting Standards Update No. 2019-01, Leases (Topic 842): Codification Improvements. The amendments in this ASU (i) reinstate the exception in Topic 842 for lessors that are not manufacturers or dealers to use cost as the fair value of the underlying asset, (ii) state that lessors that are depository and lending institutions should present principal payments received under sales type and direct financing leases within investing activities, and (iii) exempt Topic 842 from certain transition related interim disclosure requirements. ASU 2019-01 became effective for Pinnacle Financial on January 1, 2019 and did not have a material impact on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases which requires recognition in the statement of financial position of lease right of use assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The guidance requires that a lessee should recognize lease assets and lease liabilities as compared to previous GAAP that did not require lease assets and lease liabilities to be recognized for operating leases. In July 2016, the FASB issued Accounting Standards Update 2018-10, Codification Improvements to Topic 842, Leases which provided technical corrections and improvements to ASU 2016-02. In July 2016, the FASB issued Accounting Standards Update 2018-11, Leases (Topic 842): Targeted Improvements which provided an optional transition method to adopt the new requirements of ASU 2016-02 as of the adoption date with no adjustment to the presentation or disclosure of comparative prior periods included in the financial statements in the period of adoption. Pinnacle Financial has elected this optional transition method and has presented periods prior to adoption under the prior lease guidance of ASC Topic 840. In December 2018, the FASB issued Accounting Standards Update 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors . ASU 2018-20 permits lessors to account for certain taxes as lessee costs, permits lessors to exclude from revenue certain lessor costs paid by lessees directly to third parties, and requires lessors to allocate certain variable payments to lease and non-lease components. ASU 2016-02 and the subsequently issued ASUs related to Topic 842 became effective for Pinnacle Financial on January 1, 2019. As part of the adoption of these updates, Pinnacle Financial has elected the following practical expedients: 1) to not reassess whether existing contracts are or contain a lease, 2) to not reassess lease classification for existing leases, 3) to not reassess initial direct costs, 4) to not separate lease components from nonlease components for real estate leases, and 5) to not recognize short term leases (12 months or less) on the balance sheet. See Note 12 for additional detail related to lease amounts recognized as of March 31, 2019 under Topic 842. In February 2018, the FASB issued Accounting Standards Update 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The amendments in this ASU addressed the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the lower federal corporate tax rate included in the Tax Cuts and Jobs Act issued December 22, 2017 (Tax Act). These amendments allow an entity to make a reclassification from other comprehensive income to retained earnings for the difference between the historical corporate income tax rate and the lower corporate income tax rate included in the Tax Act. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Pinnacle Financial has elected not to adopt this standard due to its insignificant impact on Pinnacle Financial's consolidated financial position. |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Newly Issued not yet Effective Accounting Standards — In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment to simplify how entities other than private companies, such as public business entities and not-for-profit entities, are required to test goodwill for impairment by eliminating the comparison of the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. The amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those periods. If this standard had been effective as of the date of the financial statements included in this report, there would have been no impact on Pinnacle Financial's consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (CECL) , which introduces the current expected credit losses methodology. Among other things, CECL requires the measurement of all expected credit losses for financial assets, including loans and held-to-maturity debt securities, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The new model will require institutions to calculate all probable and estimable losses that are expected to be incurred through the financial asset's entire life through a provision for credit losses, including loans obtained as a result of any acquisition not deemed to be purchased credit deteriorated (PCD). CECL also requires the allowance for credit losses for PCD loans to be determined in a manner similar to that of other financial assets measured at amortized cost; however, the initial allowance will be added to the purchase price rather than recorded as provision expense. The disclosure of credit quality indicators related to the amortized cost of financing receivables will be further disaggregated by year of origination (or vintage). Institutions are to apply the changes through a cumulative-effect adjustment to their retained earnings as of the beginning of the first reporting period in which the standard is effective. The amendments are effective for fiscal years beginning after December 15, 2019. Early application is permitted for fiscal years beginning after December 15, 2018. Pinnacle Financial is currently assessing the impact of the new guidance on its consolidated financial statements. An increase in the overall allowance for loan losses is likely upon adoption in order to provide for expected credit losses over the life of the loan portfolio. Other than those pronouncements discussed above and those which have been recently adopted, we do not believe there were any other recently issued accounting pronouncements that are expected to materially impact Pinnacle Financial. |
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 March 31, 2019 through the date of the issued financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Supplemental Cash Flow Information | Cash Flow Information — Supplemental cash flow information addressing certain cash and noncash transactions for the three months ended March 31, 2019 and March 31, 2018 was as follows (in thousands): For the three months ended 2019 2018 Cash Transactions: Interest paid $ 68,403 $ 34,909 Income taxes paid, net 550 425 Noncash Transactions: Loans charged-off to the allowance for loan losses 6,068 8,669 Loans foreclosed upon and transferred to other real estate owned 624 232 Loans foreclosed upon and transferred to other assets 87 392 Right-of-use asset recognized during the period in exchange for lease obligations (1) 81,249 — |
Basic and Diluted Earnings Per Share Calculations | The following is a summary of the basic and diluted net income per share calculations for the three months ended March 31, 2019 and 2018 (in thousands, except per share data): Three months ended 2019 2018 Basic net income per share calculation: Numerator - Net income $ 93,960 $ 83,510 Denominator - Weighted average common shares outstanding 76,803 77,078 Basic net income per common share $ 1.22 $ 1.08 Diluted net income per share calculation: Numerator – Net income $ 93,960 $ 83,510 Denominator - Weighted average common shares outstanding 76,803 77,078 Dilutive shares contingently issuable 325 288 Weighted average diluted common shares outstanding 77,128 77,366 Diluted net income per common share $ 1.22 $ 1.08 |
Equity method investment (Table
Equity method investment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | A summary of BHG's financial position as of March 31, 2019 and December 31, 2018 and results of operations as of and for the three months ended March 31, 2019 and 2018 , were as follows (in thousands): As of March 31, 2019 December 31, 2018 Assets $ 520,254 $ 459,816 Liabilities 410,404 324,211 Equity interests 109,850 135,605 Total liabilities and equity $ 520,254 $ 459,816 For the three months ended 2019 2018 Revenues $ 62,817 $ 43,750 Net income $ 27,135 $ 19,003 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Available-for-sale and Held-to-maturity Securities | The amortized cost and fair value of securities available-for-sale and held-to-maturity at March 31, 2019 and December 31, 2018 are summarized as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2019: Securities available-for-sale: U.S. Treasury securities $ 48,612 $ 5 $ 5 $ 48,612 U.S. government agency securities 68,219 25 1,275 66,969 Mortgage-backed securities 1,372,248 3,798 16,325 1,359,721 State and municipal securities 1,423,313 30,366 2,948 1,450,731 Asset-backed securities 269,941 1,026 1,957 269,010 Corporate notes and other 56,062 302 1,401 54,963 $ 3,238,395 $ 35,522 $ 23,911 $ 3,250,006 Securities held-to-maturity: State and municipal securities $ 194,043 $ 4,979 $ 12 $ 199,010 $ 194,043 $ 4,979 $ 12 $ 199,010 December 31, 2018: Securities available-for-sale: U.S. Treasury securities $ 30,325 $ — $ 25 $ 30,300 U.S. government agency securities 71,456 49 1,346 70,159 Mortgage-backed securities 1,336,469 3,110 28,634 1,310,945 State and municipal securities 1,244,471 3,785 18,602 1,229,654 Asset-backed securities 379,107 820 4,345 375,582 Corporate notes and other 69,399 170 2,523 67,046 $ 3,131,227 $ 7,934 55,475 $ 3,083,686 Securities held-to-maturity: State and municipal securities $ 194,282 $ 152 $ 1,303 $ 193,131 $ 194,282 $ 152 $ 1,303 $ 193,131 |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities as of March 31, 2019 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage- and asset-backed securities since the mortgages and assets underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories in the following summary (in thousands): Available-for-sale Held-to-maturity March 31, 2019: Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 63,866 $ 63,860 $ 325 $ 326 Due in one year to five years 22,546 22,533 5,679 5,678 Due in five years to ten years 103,720 103,272 7,962 8,003 Due after ten years 1,406,074 1,431,610 180,077 185,003 Mortgage-backed securities 1,372,248 1,359,721 — — Asset-backed securities 269,941 269,010 — — $ 3,238,395 $ 3,250,006 $ 194,043 $ 199,010 |
Classification of Investments According to Term of Unrealized Losses of Less than Twelve Months or Twelve Months or Longer | At March 31, 2019 and December 31, 2018 , the following investments had unrealized losses. The table below classifies these investments according to the term of the unrealized losses of less than twelve months or twelve months or longer (in thousands): 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 March 31, 2019 U.S. Treasury securities $ 29,824 $ 3 $ 248 $ 2 $ 30,072 $ 5 U.S. government agency securities 6,631 58 51,280 1,217 57,911 1,275 Mortgage-backed securities 82,112 565 987,424 15,760 1,069,536 16,325 State and municipal securities 161,772 2,622 80,686 509 242,458 3,131 Asset-backed securities 152,062 1,534 26,675 423 178,737 1,957 Corporate notes 10,672 719 19,871 682 30,543 1,401 Total temporarily-impaired securities $ 443,073 $ 5,501 $ 1,166,184 $ 18,593 $ 1,609,257 $ 24,094 At December 31, 2018 U.S. Treasury securities $ 30,054 $ 22 $ 246 $ 3 $ 30,300 $ 25 U.S. government agency securities 13,697 328 42,539 1,018 56,236 1,346 Mortgage-backed securities 203,299 2,134 882,231 26,500 1,085,530 28,634 State and municipal securities 805,821 18,643 198,610 4,078 1,004,431 22,721 Asset-backed securities 268,677 4,118 11,828 227 280,505 4,345 Corporate notes 26,272 1,538 25,915 985 52,187 2,523 Total temporarily-impaired securities $ 1,347,820 $ 26,783 $ 1,161,369 $ 32,811 $ 2,509,189 $ 59,594 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loan Classification Categorized by Risk Rating Category | The following table outlines the amount of each loan classification categorized into each risk rating category as of March 31, 2019 and December 31, 2018 (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer Total March 31, 2019 Pass $ 7,252,503 $ 2,830,701 $ 2,083,602 $ 5,259,503 $ 349,945 $ 17,776,254 Special Mention 51,552 6,916 7,843 41,980 710 109,001 Substandard (1) 76,171 17,880 3,350 96,049 57 193,507 Substandard-nonaccrual 38,920 32,131 2,775 21,988 330 96,144 Doubtful-nonaccrual — — — — — — Total loans $ 7,419,146 $ 2,887,628 $ 2,097,570 $ 5,419,520 $ 351,042 $ 18,174,906 Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer Total December 31, 2018 Pass $ 6,998,485 $ 2,787,570 $ 2,059,376 $ 5,148,726 $ 352,516 $ 17,346,673 Special Mention 55,932 7,902 4,334 24,284 711 93,163 Substandard (1) 78,202 20,906 5,358 75,351 62 179,879 Substandard-nonaccrual 32,335 28,069 3,387 23,060 983 87,834 Doubtful-nonaccrual — — — — — — Total loans $ 7,164,954 $ 2,844,447 $ 2,072,455 $ 5,271,421 $ 354,272 $ 17,707,549 (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 $190.3 million at March 31, 2019 , compared to $176.3 million at December 31, 2018 . |
Purchase Credit Impaired Loans | Loans acquired with deteriorated credit quality are recorded pursuant to the provisions of ASC 310-30, and are referred to as purchase credit impaired loans. The following table provides a rollforward of purchase credit impaired loans from December 31, 2018 through March 31, 2019 (in thousands): Gross Carrying Value Accretable Yield Nonaccretable Yield Net Carrying Value December 31, 2018 $ 42,837 $ (114 ) $ (17,394 ) $ 25,329 Acquisition — — — — Year-to-date settlements (2,951 ) 12 1,312 (1,627 ) March 31, 2019 $ 39,886 $ (102 ) $ (16,082 ) $ 23,702 |
Summary of Recorded Investment, Unpaid Principal Balance and Related Allowance and Average Recorded Investment of Impaired Loans | Impaired loans include nonaccrual loans, troubled debt restructurings, and other loans deemed to be impaired but that continue to accrue interest. The following tables detail the recorded investment, unpaid principal balance and related allowance of Pinnacle Financial's impaired loans at March 31, 2019 and December 31, 2018 by loan classification (in thousands): At March 31, 2019 At December 31, 2018 Recorded investment Unpaid principal balances Related allowance Recorded investment Unpaid principal balances Related allowance Impaired loans with an allowance: Commercial real estate – mortgage $ 18,539 $ 18,543 $ 1,521 $ 14,114 $ 14,124 $ 724 Consumer real estate – mortgage 24,668 24,784 2,381 19,864 19,991 1,443 Construction and land development 868 864 55 581 579 28 Commercial and industrial 8,802 8,773 1,461 9,252 9,215 1,441 Consumer and other 331 352 100 983 1,005 328 Total $ 53,208 $ 53,316 $ 5,518 $ 44,794 $ 44,914 $ 3,964 Impaired loans without an allowance: Commercial real estate – mortgage $ 16,674 $ 16,678 $ — $ 14,724 $ 14,739 $ — Consumer real estate – mortgage 10,431 10,466 — 7,247 7,271 — Construction and land development — — — 1,786 1,786 — Commercial and industrial 15,691 15,712 — 14,595 14,627 — Consumer and other — — — — — — Total $ 42,796 $ 42,856 $ — $ 38,352 $ 38,423 $ — Total impaired loans $ 96,004 $ 96,172 $ 5,518 $ 83,146 $ 83,337 $ 3,964 For the three months ended March 31, 2019 , the average balance of impaired loans, was $89.6 million, compared to $64.2 million for the same period in 2018 . Pinnacle Financial's policy is that 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 that once a loan is placed on nonaccrual status each subsequent payment is reviewed on a case-by-case basis to determine if the payment should be applied to interest or principal pursuant to regulatory guidelines. As detailed in the following table, Pinnacle Financial recognized $87,000 in interest income from cash payments received on nonaccrual loans during the three months ended March 31, 2019 compared to $101,000 during the three months ended March 31, 2018 . Had these nonaccruing loans been on accruing status, interest income would have been $1.6 million higher for the three months ended March 31, 2019 compared to $1.4 million higher for the three months ended March 31, 2018 . The following table details the average recorded investment and the amount of interest income recognized on a cash basis for the three months ended March 31, 2019 and 2018 , respectively, of impaired loans by loan classification (in thousands): For the three months ended 2019 2018 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Impaired loans with an allowance: Commercial real estate – mortgage $ 16,327 $ — $ 5,119 $ — Consumer real estate – mortgage 22,266 — 8,792 — Construction and land development 724 — 1,451 — Commercial and industrial 9,027 — 11,220 — Consumer and other 657 — 390 — Total $ 49,001 $ — $ 26,972 $ — Impaired loans without an allowance: Commercial real estate – mortgage $ 15,699 $ 87 $ 15,375 $ 101 Consumer real estate – mortgage 8,839 — 4,369 — Construction and land development 893 — 1,322 — Commercial and industrial 15,143 — 16,185 — Consumer and other — — — — Total $ 40,574 $ 87 $ 37,251 $ 101 Total impaired loans $ 89,575 $ 87 $ 64,223 $ 101 |
Summary of Loan Portfolio Credit Risk Exposure | 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 March 31, 2019 with the comparative exposures for December 31, 2018 (in thousands): March 31, 2019 Outstanding Principal Balances Unfunded Commitments Total exposure Total Exposure at December 31, 2018 Lessors of nonresidential buildings $ 3,208,737 $ 894,936 $ 4,103,673 $ 3,932,059 Lessors of residential buildings 1,038,462 335,860 1,374,322 1,484,697 New Housing For-Sale Builders 509,750 586,983 1,096,733 1,100,989 Hotels (except Casino Hotels) and Motels 825,627 137,885 963,512 920,001 |
Past Due Balances by Loan Classification | The table below presents past due balances by loan classification and segment at March 31, 2019 and December 31, 2018 , allocated between accruing and nonaccrual status (in thousands): Accruing Nonaccruing March 31, 2019 30-89 days past due and accruing 90 days or more past due and accruing Total past due and accruing Current and accruing Purchase credit impaired Nonaccrual (1) Nonaccruing purchase credit impaired Total loans Commercial real estate: Owner-occupied $ 8,302 $ — $ 8,302 $ 2,583,109 $ 2,577 $ 22,436 $ 1,117 $ 2,617,541 All other 6,569 — 6,569 4,774,555 5,119 12,601 2,761 4,801,605 Consumer real estate – mortgage 10,982 39 11,021 2,840,793 3,683 27,336 4,795 2,887,628 Construction and land development 795 — 795 2,092,563 1,437 868 1,907 2,097,570 Commercial and industrial 9,068 1,323 10,391 5,386,830 306 21,993 — 5,419,520 Consumer and other 2,736 620 3,356 347,356 — 330 — 351,042 Total $ 38,452 $ 1,982 $ 40,434 $ 18,025,206 $ 13,122 $ 85,564 $ 10,580 $ 18,174,906 Accruing Nonaccruing December 31, 2018 30-89 days past due and accruing 90 days or more past due and accruing Total past due and accruing Current and accruing Purchase credit impaired Nonaccrual (1) Nonaccruing purchase credit impaired Total loans Commercial real estate: Owner-occupied $ 10,170 $ — $ 10,170 $ 2,623,700 $ 2,664 $ 16,025 $ 874 $ 2,653,433 All other 1,586 — 1,586 4,488,840 5,659 12,634 2,802 4,511,521 Consumer real estate – mortgage 18,059 — 18,059 2,794,630 3,689 22,564 5,505 2,844,447 Construction and land development 3,759 — 3,759 2,063,201 2,108 2,020 1,367 2,072,455 Commercial and industrial 21,451 1,082 22,533 5,225,205 623 23,022 38 5,271,421 Consumer and other 3,276 476 3,752 349,537 — 983 — 354,272 Total $ 58,301 $ 1,558 $ 59,859 $ 17,545,113 $ 14,743 $ 77,248 $ 10,586 $ 17,707,549 (1) Approximately $47.4 million and $52.5 million of nonaccrual loans as of March 31, 2019 and December 31, 2018 , respectively, were performing pursuant to their contractual terms at those dates . |
Details of Changes in the Allowance for Loan Losses | The following table details the allowance for loan losses and recorded investment in loans by loan classification and by impairment evaluation method as of March 31, 2019 and December 31, 2018 , respectively (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Unallocated Total March 31, 2019 Allowance for Loan Losses: Collectively evaluated for impairment $ 28,646 $ 5,988 $ 10,860 $ 31,238 $ 4,703 $ 81,435 Individually evaluated for impairment 1,521 2,381 55 1,461 100 5,518 Loans acquired with deteriorated credit quality (1) — — — — — — Total allowance for loan losses $ 30,167 $ 8,369 $ 10,915 $ 32,699 $ 4,803 $ 241 $ 87,194 Loans: Collectively evaluated for impairment $ 7,372,359 $ 2,844,051 $ 2,093,358 $ 5,394,721 $ 350,711 $ 18,055,200 Individually evaluated for impairment 35,213 35,099 868 24,493 331 96,004 Loans acquired with deteriorated credit quality 11,574 8,478 3,344 306 — 23,702 Total loans $ 7,419,146 $ 2,887,628 $ 2,097,570 $ 5,419,520 $ 351,042 $ 18,174,906 December 31, 2018 Allowance for Loan Losses: Collectively evaluated for impairment $ 26,222 $ 6,227 $ 11,100 $ 30,290 $ 5,095 $ 78,934 Individually evaluated for impairment 724 1,443 28 1,441 328 3,964 Loans acquired with deteriorated credit quality (1) — — — — — — Total allowance for loan losses $ 26,946 $ 7,670 $ 11,128 $ 31,731 $ 5,423 $ 677 $ 83,575 Loans: Collectively evaluated for impairment $ 7,124,117 $ 2,808,142 $ 2,066,613 $ 5,246,913 $ 353,289 $ 17,599,074 Individually evaluated for impairment 28,838 27,111 2,367 23,847 983 83,146 Loans acquired with deteriorated credit quality 11,999 9,194 3,475 661 — 25,329 Total loans $ 7,164,954 $ 2,844,447 $ 2,072,455 $ 5,271,421 $ 354,272 $ 17,707,549 (1) Loans acquired with deteriorated credit quality are recorded at fair value at the time of acquisition. An allowance for loan losses is recorded only in the event of subsequent credit deterioration. The following table details the changes in the allowance for loan losses for the three months ended March 31, 2019 and 2018 , respectively, by loan classification (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Unallocated Total Three months ended March 31, 2019: Balance at December 31, 2018 $ 26,946 $ 7,670 $ 11,128 $ 31,731 $ 5,423 $ 677 $ 83,575 Charged-off loans (534 ) (350 ) — (3,352 ) (1,832 ) — (6,068 ) Recovery of previously charged-off loans 72 369 122 1,598 342 — 2,503 Provision for loan losses 3,683 680 (335 ) 2,722 870 (436 ) 7,184 Balance at March 31, 2019 $ 30,167 $ 8,369 $ 10,915 $ 32,699 $ 4,803 $ 241 $ 87,194 Three months ended March 31, 2018: Balance at December 31, 2017 $ 21,188 $ 5,031 $ 8,962 $ 24,863 $ 5,874 $ 1,322 $ 67,240 Charged-off loans (728 ) (336 ) (2 ) (2,540 ) (5,063 ) — (8,669 ) Recovery of previously charged-off loans 1,396 666 565 888 1,187 — 4,702 Provision for loan losses 832 (261 ) 591 3,437 3,478 (1,146 ) 6,931 Balance at March 31, 2018 $ 22,688 $ 5,100 $ 10,116 $ 26,648 $ 5,476 $ 176 $ 70,204 |
Stock Options and Restricted _2
Stock Options and Restricted Shares (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | A summary of the stock option activity within the equity incentive plans during the three months ended March 31, 2019 and information regarding expected vesting, contractual terms remaining, intrinsic values and other matters is as follows: Number Weighted-Average Exercise Price Weighted-Average Contractual Remaining Term (in years) Aggregate Intrinsic Value (000's) Outstanding at December 31, 2018 176,709 $ 22.77 2.23 $ 4,123 (1) Granted — Exercised (5,200 ) Forfeited — Outstanding at March 31, 2019 171,509 $ 22.70 3.06 $ 5,488 (2) Options exercisable at March 31, 2019 171,509 $ 22.70 3.06 $ 5,488 (2) (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $46.10 per common share at December 31, 2018 for the 176,709 options that were in-the-money at December 31, 2018 . (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 $54.70 per common share at March 31, 2019 for the 171,509 options that were in-the-money at March 31, 2019 . |
Summary of Activity for Unvested Restricted Share Awards | A summary of activity for unvested restricted share awards for the three months ended March 31, 2019 is as follows: Number Grant Date Weighted-Average Cost Unvested at December 31, 2018 692,806 $ 55.19 Shares awarded 192,110 Restrictions lapsed and shares released to associates/directors (212,247 ) Shares forfeited (1) (11,970 ) Unvested at March 31, 2019 660,699 $ 53.30 (1) Represents shares forfeited due to employee termination and/or retirement. No shares were forfeited due to failure to meet performance targets. Pinnacle Financial has granted restricted share awards to associates, (including members of executive management) and outside directors with a combination of time and, in the case of the annual award to the members of the Company's leadership team, performance 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 three months ended March 31, 2019 . The table reflects the life-to-date activity for these awards: Grant Year Group (1) Vesting Period in years Shares awarded Restrictions Lapsed and shares released to participants Shares Forfeited by participants (4) Shares Unvested Time Based Awards 2019 Associates (2) 3 - 5 175,561 169 2,616 172,776 Outside Director Awards (3) 2019 Outside directors 1 16,549 — — 16,549 (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 performance-based vesting 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 February 29, 2020 based on each individual board member meeting their attendance goals for the various board and board committee meetings to which each member was scheduled to attend. (4) These shares represent forfeitures resulting from recipients whose employment or board membership is terminated during the year-to-date period ended March 31, 2019 . 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. |
Summary of Restricted Share Unit awards | The following table details the restricted share unit awards (all of which are performance units) outstanding at March 31, 2019 : Units Awarded Grant year Named Executive Officers (NEOs) (1) Leadership Team other than NEOs Applicable Performance Periods associated with each tranche (fiscal year) Service period per tranche (in years) Subsequent holding period per tranche (in years) Period in which units to be settled into shares of common stock (2) 2019 166,211-249,343 52,244 2019 2 3 2024 2020 2 2 2024 2021 2 1 2024 2018 96,878-145,339 25,990 2018 2 3 2023 2019 2 2 2023 2020 2 1 2023 2017 72,537-109,339 24,916 2017 2 3 2022 2018 2 2 2022 2019 2 1 2022 2016 73,474-110,223 26,683 2016 2 3 2021 2017 2 2 2021 2018 2 1 2021 2015 58,200-101,850 28,378 2015 2 3 2020 2016 2 2 2020 2017 2 1 2020 (1) The named executive officers are awarded a range of awards that may be earned based on attainment of goals between a target level of performance and a maximum level of performance. (2) Restricted share unit awards granted in 2019, 2018, 2017, 2016 and 2015, if earned, will be settled in shares of Pinnacle Financial Common Stock in the periods noted in the table, if Pinnacle Bank's ratio of non-performing assets to the assets is less than amounts established in the applicable award agreement. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 is included in the following table (in thousands): March 31, 2019 December 31, 2018 Balance Sheet Location Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Interest rate swap agreements: Assets Other assets $ 1,096,649 $ 24,555 $ 1,059,724 $ 22,273 Liabilities Other liabilities 1,096,649 (24,696 ) 1,059,724 (22,401 ) Total $ 2,193,298 $ (141 ) $ 2,119,448 $ (128 ) The effects of Pinnacle Financial's interest rate swaps to facilitate customers' transactions on the income statement during the three months ended March 31, 2019 and 2018 were as follows: Amount of Gain (Loss) Recognized in Income Location of Gain (Loss) Recognized in Income Three Months Ended March 31, 2019 2018 Interest rate swap agreements Other noninterest income $ (13 ) $ (20 ) |
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, 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. The hedging strategy converts the LIBOR-based variable interest rate on forecasted borrowings to a fixed interest rate and is used in an effort to protect Pinnacle Financial from floating interest rate variability. A summary of Pinnacle Financial's cash flow hedge relationships as of March 31, 2019 and December 31, 2018 are as follows (in thousands): March 31, 2019 December 31, 2018 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 Liability derivatives Interest rate swap agreements Other liabilities 3.10 3.09% 3 month LIBOR $ 99,000 $ (2,466 ) $ 99,000 $ (1,757 ) The effects of Pinnacle Financial's cash flow hedge relationships on the statement of comprehensive income (loss) during the three months ended March 31, 2019 and 2018 were as follows: Amount of Gain Recognized in Other Comprehensive Income (Loss) Three Months Ended March 31, Liability derivatives 2019 2018 Interest rate swap agreements $ (523 ) $ 1,720 The cash flow hedges were determined to be highly effective during the periods presented and as a result qualify for hedge accounting treatment. The hedge would no longer be considered effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence or Pinnacle Financial discontinues hedge accounting. Pinnacle Financial expects the hedges to continue to be highly effective and qualify for hedge accounting during the remaining terms of the swaps. Gains totaling $ 256,000 and $ 141,000 were reclassified from accumulated other comprehensive income into net income during the three months ended March 31, 2019 or 2018 , respectively, related to previously terminated derivatives. No amounts are expected to be reclassified from accumulated other comprehensive income into net income over the next twelve months related to derivatives that are currently on the balance sheet. 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 securities available-for-sale and fixed rate prepayable loans. The hedging strategy on securities converts the fixed interest rates to LIBOR-based variable interest rates. 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. Pinnacle Financial also utilizes interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of the loans. A specified portion of the prepayable loans have been designated as the hedged assets under the "last-of-layer" method. Such hedging designations are allowed on the portion of a closed portfolio of prepayable assets that is not expected to be affected by prepayments, defaults, and other factors affecting the timing and amount of cash flows. A summary of Pinnacle Financial's fair value hedge relationships as of March 31, 2019 and December 31, 2018 are as follows (in thousands): March 31, 2019 December 31, 2018 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 Liability derivatives Interest rate swap agreements - securities Other liabilities 7.80 3.08% 3 month LIBOR $ 477,905 $ (25,076 ) $ 477,905 $ (14,796 ) Interest rate swap agreements - loans Other liabilities 2.39 2.77% 3 month LIBOR 900,000 (11,891 ) 900,000 (7,037 ) 4.26 2.88% $ 1,377,905 $ (36,967 ) $ 1,377,905 $ (21,833 ) The effects of Pinnacle Financial's fair value hedge relationships on the income statement during the three months ended March 31, 2019 and 2018 were as follows: Location of Gain (Loss) on Derivative Amount of Gain (Loss) Recognized in Income Three Months Ended March 31, Liability derivatives 2019 2018 Interest rate swap agreements - securities Interest income on securities $ (10,280 ) $ 1,579 Interest rate swap agreements - loans Interest income on loans $ (4,854 ) $ — Location of Gain (Loss) on Hedged Item Amount of Gain (Loss) Recognized in Income Three Months Ended March 31, Liability derivatives 2019 2018 Interest rate swap agreements - securities Interest income on securities $ 10,280 $ (1,579 ) Interest rate swap agreements - loans Interest income on loans $ 4,854 $ — The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at March 31, 2019 and December 31, 2018 : Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Line item on the balance sheet Securities available-for-sale $ 528,900 $ 513,116 $ 25,076 $ 14,796 Loans (1) $ 911,891 $ 907,037 $ 11,891 $ 7,037 (1) The carrying amount as shown represents the designated last-of-layer. At March 31, 2019 and December 31, 2018, the total amortized cost basis of the closed portfolio of loans designated in these hedging relationships was $ 2.7 billion. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 , by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands): 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) March 31, 2019 Investment securities available-for-sale: U.S. Treasury securities $ 48,612 $ — $ 48,612 $ — U.S. government agency securities 66,969 — 66,969 — Mortgage-backed securities 1,359,721 — 1,359,721 — State and municipal securities 1,450,731 — 1,437,001 13,730 Agency-backed securities 269,010 — 269,010 — Corporate notes and other 54,963 — 54,963 — Total investment securities available-for-sale $ 3,250,006 $ — $ 3,236,276 $ 13,730 Other investments 52,806 — 24,699 28,107 Other assets 27,943 — 27,943 — Total assets at fair value $ 3,330,755 $ — $ 3,288,918 $ 41,837 Other liabilities $ 64,746 $ — $ 64,746 $ — Total liabilities at fair value $ 64,746 $ — $ 64,746 $ — December 31, 2018 Investment securities available-for-sale: U.S. Treasury securities $ 30,300 $ — $ 30,300 $ — U.S. government agency securities 70,159 — 70,159 — Mortgage-backed securities 1,310,945 — 1,310,945 — State and municipal securities 1,229,654 — 1,215,059 14,595 Agency-backed securities 375,582 — 375,582 — Corporate notes and other 67,046 — 67,046 — Total investment securities available-for-sale 3,083,686 — 3,069,091 14,595 Other investments 50,791 — 24,369 26,422 Other assets 24,524 — 24,524 — Total assets at fair value $ 3,159,001 $ — $ 3,117,984 $ 41,017 Other liabilities $ 46,550 $ — $ 46,550 $ — Total liabilities at fair value $ 46,550 $ — $ 46,550 $ — |
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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Total carrying value in the consolidated balance sheet Quoted market prices in an active market (Level 1) Models with significant observable market parameters (Level 2) Models with significant unobservable market parameters (Level 3) Total gains (losses) for the year-to-date period then ended Other real estate owned $ 15,077 $ — $ — $ 15,077 $ 50 Impaired loans, net (1) 47,690 — — 47,690 (1,113 ) Total $ 62,767 $ — $ — $ 62,767 $ (1,063 ) December 31, 2018 Other real estate owned $ 15,165 $ — $ — $ 15,165 $ (84 ) Impaired loans, net (1) 40,830 — — 40,830 (1,214 ) Total $ 55,995 $ — $ — $ 55,995 $ (1,298 ) (1) Amount is net of valuation allowance of $5.5 million and $4.0 million at March 31, 2019 and December 31, 2018 , respectively, as required by ASC 310-10, "Receivables." |
Rollforward of the Balance Sheet Amounts, Unobservable Input Reconciliation | The table below includes a rollforward of the balance sheet amounts for the three months ended March 31, 2019 and March 31, 2018 (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): For the three months ended March 31, 2019 2018 Available-for-sale Securities Other Other liabilities Available-for-sale Securities Other Other liabilities Fair value, beginning of period $ 14,595 $ 26,422 $ — $ 17,029 $ 28,874 $ — Total realized gains included in income 30 448 — 31 512 — Changes in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at March 31 (496 ) — — (666 ) — — Purchases — 1,670 — — 870 — Issuances — — — — — — Settlements (399 ) (433 ) — (1,168 ) (468 ) — Transfers out of Level 3 — — — — — — Fair value, end of period $ 13,730 $ 28,107 — $ 15,226 $ 29,788 $ — Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at March 31 $ 30 $ 448 $ — $ 31 $ 512 $ — |
Carrying Amounts, Estimated Fair Value and Placement in the Fair Value Hierarchy of Financial Instruments | The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at March 31, 2019 and December 31, 2018 . This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as non-interest bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity (in thousands): March 31, 2019 Carrying/ Notional Amount Estimated Fair Value (1) Quoted market prices in an active market (Level 1) Models with significant observable market parameters (Level 2) Models with significant unobservable market parameters (Level 3) Financial assets: Securities held-to-maturity $ 194,043 $ 199,010 $ — $ 199,010 $ — Loans, net 18,087,712 17,916,901 — — 17,916,901 Consumer loans held-for-sale 53,658 54,613 — 54,613 — Commercial loans held-for-sale 14,456 14,713 — 14,713 — Financial liabilities: Deposits and securities sold under agreements to repurchase 18,581,159 17,977,271 — — 17,977,271 Federal Home Loan Bank advances 2,121,075 2,109,609 — — 2,109,609 Subordinated debt and other borrowings 484,703 465,615 — — 465,615 Off-balance sheet instruments: Commitments to extend credit (2) 7,397,175 1,729 — — 1,729 Standby letters of credit (3) 191,279 1,135 — — 1,135 December 31, 2018 Financial assets: Securities held-to-maturity $ 194,282 $ 193,131 $ — $ 193,131 $ — Loans, net 17,623,974 17,288,795 — — 17,288,795 Consumer loans held-for-sale 34,196 34,929 — 34,929 — Commercial loans held-for-sale 15,954 16,296 — 16,296 — Financial liabilities: Deposits and securities sold under agreements to repurchase 18,953,848 18,337,848 — — 18,337,848 Federal Home Loan Bank advances 1,443,589 1,432,003 — — 1,432,003 Subordinated debt and other borrowings 485,130 464,616 — — 464,616 Off-balance sheet instruments: Commitments to extend credit (2) 6,921,689 1,733 — — 1,733 Standby letters of credit (3) 177,475 1,131 — — 1,131 (1) Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. (2) At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at both March 31, 2019 and December 31, 2018 , Pinnacle Financial included in other liabilities $1.7 million representing the inherent risks associated with these off-balance sheet commitments. (3) At both March 31, 2019 and December 31, 2018 , the aggregate fair value of Pinnacle Financial's standby letters of credit was $1.1 million. These amounts represent the unamortized fee associated with these standby letters of credit and are included in the consolidated balance sheets of Pinnacle Financial and are believed to approximate fair value. These fair values will decrease over time as the existing standby letters of credit approach their expiration dates. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Summary of Regulatory Capital Requirement | The final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel III rules) became effective for Pinnacle Financial on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in on January 1, 2019. The minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: (i) a common equity Tier 1 capital ratio of 4.5% ; (ii) a Tier 1 risk-based capital ratio of 6% ; (iii) a total risk-based capital ratio of 8% ; and (iv) a Tier 1 leverage ratio of 4% for all institutions. The Basel III rules also established a capital conservation buffer of 2.5% (which was phased in over three years) above the regulatory minimum risk-based capital ratios. The capital conservation buffer was phased in beginning in January 2016 at 0.625% and increased each year by a like percentage until fully implemented in January 2019. Upon full implementation in January 2019, minimum risk-based capital ratios including the capital conservation buffer are: i) a common equity Tier 1 capital ratio of 7%, ii) a Tier 1 risk-based capital ratio of 8.5%, and iii) a total risk-based capital ratio of 10.5%. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes, as of March 31, 2019 , that Pinnacle Financial and Pinnacle Bank met all capital adequacy requirements to which they are subject. To be categorized as well-capitalized under applicable banking regulations, Pinnacle Financial and Pinnacle Bank must maintain 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 capital conservation buffer, are presented in the following table (in thousands): Actual Minimum Capital Requirement Minimum To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio At March 31, 2019 Total capital to risk weighted assets: Pinnacle Financial $ 2,635,562 12.0 % $ 1,760,157 8.0 % NA NA Pinnacle Bank $ 2,495,127 11.4 % $ 1,756,333 8.0 % $ 2,195,416 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 2,078,454 9.4 % $ 1,320,118 6.0 % NA NA Pinnacle Bank $ 2,277,027 10.4 % $ 1,317,250 6.0 % $ 1,756,333 8.0 % Common equity Tier 1 capital to risk weighted assets Pinnacle Financial $ 2,078,331 9.4 % $ 990,088 4.5 % NA NA Pinnacle Bank $ 2,276,904 10.4 % $ 987,937 4.5 % $ 1,427,020 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 2,078,454 9.0 % $ 924,540 4.0 % NA NA Pinnacle Bank $ 2,277,027 9.9 % $ 922,810 4.0 % $ 1,153,512 5.0 % Actual Minimum Capital Requirement Minimum To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio At December 31, 2018 Total capital to risk weighted assets: Pinnacle Financial $ 2,580,143 12.2 % $ 1,691,017 8.0 % NA NA Pinnacle Bank $ 2,432,419 11.5 % $ 1,686,046 8.0 % $ 2,107,558 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 2,024,193 9.6 % $ 1,268,263 6.0 % NA NA Pinnacle Bank $ 2,218,003 10.5 % $ 1,264,535 6.0 % $ 1,686,046 8.0 % Common equity Tier 1 capital to risk weighted assets Pinnacle Financial $ 2,024,070 9.6 % $ 951,197 4.5 % NA NA Pinnacle Bank $ 2,217,880 10.5 % $ 948,401 4.5 % $ 1,369,912 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 2,024,193 8.9 % $ 909,102 4.0 % NA NA Pinnacle Bank $ 2,218,003 9.8 % $ 906,185 4.0 % $ 1,132,731 5.0 % (*) Average assets for the above calculations were based on the most recent quarter. |
Subordinated Debt and Other b_2
Subordinated Debt and Other borrowings (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Subordinated Debt [Abstract] | |
Schedule of Subordinated Debt and Other Borrowings | Pinnacle Financial has twelve wholly-owned subsidiaries that are statutory business trusts created for the exclusive purpose of issuing 30 -year capital trust preferred securities. These securities qualify as Tier 2 capital. Pinnacle Financial also has a $75.0 million revolving credit facility, of which it had borrowed $20.0 million as of March 31, 2019 . Pinnacle Financial and the lender amended this credit facility on April 24, 2019 to, among other things, extend the maturity date to April 24, 2020, reduce the applicable margin calculation related to interest rates paid on borrowings thereunder and change the unused line fee from 0.35% to 0.30%. Additionally, Pinnacle Financial and Pinnacle Bank have entered into, or assumed in connection with acquisitions, certain other subordinated debt agreements as outlined below as of March 31, 2019 and, with respect to the legacy Pinnacle Financial indebtedness, as fully described in the 2018 Form 10-K (in thousands): Name Date Maturity Total Debt Outstanding Interest Rate at Coupon Structure Trust preferred securities Pinnacle Statutory Trust I December 29, 2003 December 30, 2033 $ 10,310 5.41 % 30-day LIBOR + 2.80% Pinnacle Statutory Trust II September 15, 2005 September 30, 2035 20,619 3.99 % 30-day LIBOR + 1.40% Pinnacle Statutory Trust III September 7, 2006 September 30, 2036 20,619 4.24 % 30-day LIBOR + 1.65% Pinnacle Statutory Trust IV October 31, 2007 September 30, 2037 30,928 5.46 % 30-day LIBOR + 2.85% BNC Capital Trust I April 3, 2003 April 15, 2033 5,155 6.04 % 30-day LIBOR + 3.25% BNC Capital Trust II March 11, 2004 April 7, 2034 6,186 5.64 % 30-day LIBOR + 2.85% Name Date Maturity Total Debt Outstanding Interest Rate at Coupon Structure BNC Capital Trust III September 23, 2004 September 23, 2034 5,155 5.19 % 30-day LIBOR + 2.40% BNC Capital Trust IV September 27, 2006 December 31, 2036 7,217 4.29 % 30-day LIBOR + 1.70% Valley Financial Trust I June 26, 2003 June 26, 2033 4,124 5.71 % 30-day LIBOR + 3.10% Valley Financial Trust II September 26, 2005 December 15, 2035 7,217 4.10 % 30-day LIBOR + 1.49% Valley Financial Trust III December 15, 2006 January 30, 2037 5,155 4.48 % 30-day LIBOR + 1.73% Southcoast Capital Trust III August 5, 2005 September 30, 2035 10,310 4.09 % 30-day LIBOR + 1.50% Subordinated Debt Pinnacle Bank Subordinated Notes July 30, 2015 July 30, 2025 60,000 4.88 % Fixed (1) Pinnacle Bank Subordinated Notes March 10, 2016 July 30, 2025 70,000 4.88 % Fixed (1) Avenue Subordinated Notes December 29, 2014 December 29, 2024 20,000 6.75 % Fixed (2) Pinnacle Financial Subordinated Notes November 16, 2016 November 16, 2026 120,000 5.25 % Fixed (3) BNC Subordinated Notes September 25, 2014 October 1, 2024 60,000 5.50 % Fixed (4) BNC Subordinated Note October 15, 2013 October 15, 2023 9,360 7.49 % 30-day LIBOR + 5.00% (5) Other Borrowings Revolving credit facility (6) April 26, 2018 April 25, 2019 20,000 4.24 % 30-day LIBOR + 1.75% Debt issuance costs and fair value adjustments (7,652 ) Total subordinated debt and other borrowings $ 484,703 (1) Migrates to three month LIBOR + 3.128% beginning July 30, 2020 through the end of the term. (2) Migrates to three month LIBOR + 4.95% beginning January 1, 2020 through the end of the term. (3) Migrates to three month LIBOR + 3.884% beginning November 16, 2021 through the end of the term. (4) Migrates to three month LIBOR + 3.59% beginning October 1, 2019 through the end of the term if not redeemed on that date. (5) Coupon structure includes a floor of 5.5% and a cap of 9.5% . (6) Borrowing capacity on the revolving credit facility is $75.0 million . At March 31, 2019 , there was $20.0 million outstanding under this facility. During the three months ended March 31, 2019, an unused fee of 0.35% was assessed on the average daily unused amount of the loan. |
Leases Leases (Tables)
Leases Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities | Right-of-use assets and lease liabilities related to Pinnacle Finacial's operating and finance leases are as follows at March 31, 2019 (in thousands): Balance Sheet Location March 31, 2019 Right-of-use assets Operating leases (1) Other assets $ 73,792 Finance leases Premises and equipment, net 2,156 Total right-of-use assets $ 75,948 Lease liabilities Operating leases Other liabilities $ 81,768 Finance leases Other liabilities 3,415 Total lease liabilities $ 85,183 (1) Presented net of tenant improvement allowances of $1.7 million and purchase accounting fair value adjustments of $2.9 million . |
Schedule of Lease Costs and Other Information | Lease costs during the three months ended March 31, 2019 related to these leases were as follows (in thousands): Three Months Ended March 31, 2019 Operating lease cost $ 3,440 Short-term lease cost 14 Finance lease cost: Interest on lease liabilities 62 Amortization of right-of-use asset 56 Sublease income (249 ) Net lease cost $ 3,323 Rent expense related to leases during the three months ended March 31, 2018 was $3.2 million . Cash flows related to leases during the three months ended March 31, 2019 were as follows (in thousands): Three Months Ended March 31, 2019 Operating cash flows related to operating leases $ 3,381 Operating cash flows related to finance leases 62 Financing cash flows related to finance leases 55 Lease liabilities are determined based on lease term discounted at an effective rate of interest. Certain lease agreements contain renewal options which are considered in the determination of the lease term if they are deemed reasonably certain to be exercised. Discount rates used to determine the present value of lease payments are based on secured borrowing rates as of the commencement date of the lease. The following table presents the weighted average remaining lease term and weighted average discount rate used to determine lease liabilities at March 31, 2019 (in thousands): March 31, 2019 Weighted average remaining lease term: Operating leases 9.74 years Finance leases 9.58 years Weighted average discount rate: Operating leases 3.31 % Finance leases 7.22 % |
Schedule of Future Minimum Operating Lease Payments | The following table presents a maturity analysis of undiscounted cash flows due under operating leases and finance leases and a reconciliation to total operating lease liabilities and finance lease liabilities at March 31, 2019 (in thousands): Operating Leases Finance Leases 2019 (1) $ 10,122 $ 353 2020 12,469 470 2021 12,038 470 2022 9,688 470 2023 8,874 479 Thereafter 43,967 2,548 97,158 4,790 Less: Imputed interest (15,390 ) (1,375 ) Total lease liabilities $ 81,768 $ 3,415 (1) Includes the period from April 1, 2019 - December 31, 2019. At December 31, 2018 , the future minimum lease payments due under operating leases and capital leases, and a reconciliation to total capital lease liabilities were as follows (in thousands): Operating Leases Capital Leases 2019 $ 12,889 $ 470 2020 11,805 470 2021 11,527 470 2022 9,410 470 2023 8,820 479 Thereafter 43,730 2,548 Future minimum lease payments $ 98,181 4,907 Less: Imputed interest (1,437 ) Total capital lease liabilities $ 3,470 |
Schedule of Future Minimum Finance Lease Payments | The following table presents a maturity analysis of undiscounted cash flows due under operating leases and finance leases and a reconciliation to total operating lease liabilities and finance lease liabilities at March 31, 2019 (in thousands): Operating Leases Finance Leases 2019 (1) $ 10,122 $ 353 2020 12,469 470 2021 12,038 470 2022 9,688 470 2023 8,874 479 Thereafter 43,967 2,548 97,158 4,790 Less: Imputed interest (15,390 ) (1,375 ) Total lease liabilities $ 81,768 $ 3,415 (1) Includes the period from April 1, 2019 - December 31, 2019. At December 31, 2018 , the future minimum lease payments due under operating leases and capital leases, and a reconciliation to total capital lease liabilities were as follows (in thousands): Operating Leases Capital Leases 2019 $ 12,889 $ 470 2020 11,805 470 2021 11,527 470 2022 9,410 470 2023 8,820 479 Thereafter 43,730 2,548 Future minimum lease payments $ 98,181 4,907 Less: Imputed interest (1,437 ) Total capital lease liabilities $ 3,470 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | Mar. 31, 2019market |
Schedule of Equity Method Investments [Line Items] | |
Number of markets entity operates | 11 |
Bankers Healthcare Group, LLC | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest (as percent) | 49.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Right of use assets recognized during the period | $ 81,249,000 | $ 0 | |
Cash Transactions: | |||
Interest paid | 68,403,000 | 34,909,000 | |
Income taxes paid, net | 550,000 | 425,000 | |
Noncash Transactions: | |||
Loans charged-off to the allowance for loan losses | 6,068,000 | 8,669,000 | |
Loans foreclosed upon and transferred to other real estate owned | 624,000 | 232,000 | |
Loans foreclosed upon and transferred to other assets | $ 87,000 | $ 392,000 | |
Available-for-sale securities transferred to Held-to-Maturity | $ 179,800,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Basic and Diluted Net Income Per Share Calculations (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic net income per share calculation: | ||
Numerator - Net income | $ 93,960,000 | $ 83,510,000 |
Denominator - Weighted average common shares outstanding (in shares) | 76,803,171 | 77,077,957 |
Basic net income per common share (in dollars per share) | $ 1.22 | $ 1.08 |
Diluted net income per share calculation: | ||
Numerator – Net income | $ 93,960,000 | $ 83,510,000 |
Denominator - Weighted average common shares outstanding (in shares) | 76,803,171 | 77,077,957 |
Dilutive shares contingently issuable (in shares) | 324,521 | 287,707 |
Weighted average diluted common shares outstanding (in shares) | 77,127,692 | 77,365,664 |
Diluted net income per common share (in dollars per share) | $ 1.22 | $ 1.08 |
Equity method investment - Fina
Equity method investment - Financial Position and Results of Operations (Details) - Bankers Healthcare Group, LLC - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Assets | $ 520,254 | $ 459,816 | |
Liabilities | 410,404 | 324,211 | |
Equity interests | 109,850 | 135,605 | |
Total liabilities and equity | 520,254 | $ 459,816 | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||
Revenues | 62,817 | $ 43,750 | |
Net income | $ 27,135 | $ 19,003 |
Equity method investment - Narr
Equity method investment - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Technology, trade name and customer relationship intangibles | $ 43,850,000 | $ 46,161,000 | |
Amortization of Intangible Assets | 2,311,000 | $ 2,698,000 | |
Dividends received from equity method investment | 12,666,000 | 4,324,000 | |
Bankers Healthcare Group, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Technology, trade name and customer relationship intangibles | 10,200,000 | $ 10,700,000 | |
Amortization of Intangible Assets | 475,000 | 693,000 | |
Accretion income | 683,000 | 742,000 | |
Dividends received from equity method investment | 12,700,000 | 4,300,000 | |
Loan face amount | $ 0 | $ 0 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Securities (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2018 | Mar. 31, 2019 | |
Securities available-for-sale [Abstract] | |||
Amortized Cost | $ 3,131,227,000 | $ 3,238,395,000 | |
Gross Unrealized Gains | 7,934,000 | 35,522,000 | |
Gross Unrealized Losses | 55,475,000 | 23,911,000 | |
Securities available-for-sale, at fair value | 3,083,686,000 | 3,250,006,000 | |
Available-for-sale, Amortized Cost [Abstract] | |||
Due in one year or less | 63,866,000 | ||
Due in one year to five years | 22,546,000 | ||
Due in five years to ten years | 103,720,000 | ||
Due after ten years | 1,406,074,000 | ||
Mortgage-backed securities | 1,372,248,000 | ||
Asset-backed securities | 269,941,000 | ||
Amortized Cost | 3,238,395,000 | ||
Available-for-sale, Fair Value [Abstract] | |||
Due in one year or less | 63,860,000 | ||
Due in one year to five years | 22,533,000 | ||
Due in five years to ten years | 103,272,000 | ||
Due after ten years | 1,431,610,000 | ||
Mortgage-backed securities | 1,359,721,000 | ||
Asset-backed securities | 269,010,000 | ||
Securities available-for-sale, at fair value | 3,083,686,000 | 3,250,006,000 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Available-for-sale securities transferred to Held-to-Maturity | 179,800,000 | ||
Net unrealized after tax loss | $ 2,200,000 | ||
Securities held-to-maturity [Abstract] | |||
Amortized Cost | 194,282,000 | 194,043,000 | |
Gross Unrealized Gains | 152,000 | 4,979,000 | |
Gross Unrealized Losses | 1,303,000 | 12,000 | |
Securities held-to-maturity, fair value | 193,131,000 | 199,010,000 | |
Held-to-maturity, Amortized Cost [Abstract] | |||
Due in one year or less | 325,000 | ||
Due in one year to five years | 5,679,000 | ||
Due in five years to ten years | 7,962,000 | ||
Due after ten years | 180,077,000 | ||
Mortgage-backed securities | 0 | ||
Asset-backed securities | 0 | ||
Amortized Cost | 194,282,000 | 194,043,000 | |
Held-to-maturity, Fair Value [Abstract] | |||
Due in one year or less | 326,000 | ||
Due in one year to five years | 5,678,000 | ||
Due in five years to ten years | 8,003,000 | ||
Due after ten years | 185,003,000 | ||
Mortgage-backed securities | 0 | ||
Asset-backed securities | 0 | ||
Fair Value | 193,131,000 | 199,010,000 | |
U.S. Treasury securities | |||
Securities available-for-sale [Abstract] | |||
Amortized Cost | 30,325,000 | 48,612,000 | |
Gross Unrealized Gains | 0 | 5,000 | |
Gross Unrealized Losses | 25,000 | 5,000 | |
Securities available-for-sale, at fair value | 30,300,000 | 48,612,000 | |
Available-for-sale, Fair Value [Abstract] | |||
Securities available-for-sale, at fair value | 30,300,000 | 48,612,000 | |
U.S. government agency securities | |||
Securities available-for-sale [Abstract] | |||
Amortized Cost | 71,456,000 | 68,219,000 | |
Gross Unrealized Gains | 49,000 | 25,000 | |
Gross Unrealized Losses | 1,346,000 | 1,275,000 | |
Securities available-for-sale, at fair value | 70,159,000 | 66,969,000 | |
Available-for-sale, Fair Value [Abstract] | |||
Securities available-for-sale, at fair value | 70,159,000 | 66,969,000 | |
Mortgage-backed securities | |||
Securities available-for-sale [Abstract] | |||
Amortized Cost | 1,336,469,000 | 1,372,248,000 | |
Gross Unrealized Gains | 3,110,000 | 3,798,000 | |
Gross Unrealized Losses | 28,634,000 | 16,325,000 | |
Securities available-for-sale, at fair value | 1,310,945,000 | 1,359,721,000 | |
Available-for-sale, Fair Value [Abstract] | |||
Securities available-for-sale, at fair value | 1,310,945,000 | 1,359,721,000 | |
State and municipal securities | |||
Securities available-for-sale [Abstract] | |||
Amortized Cost | 1,244,471,000 | 1,423,313,000 | |
Gross Unrealized Gains | 3,785,000 | 30,366,000 | |
Gross Unrealized Losses | 18,602,000 | 2,948,000 | |
Securities available-for-sale, at fair value | 1,229,654,000 | 1,450,731,000 | |
Available-for-sale, Fair Value [Abstract] | |||
Securities available-for-sale, at fair value | 1,229,654,000 | 1,450,731,000 | |
Asset-backed securities | |||
Securities available-for-sale [Abstract] | |||
Amortized Cost | 379,107,000 | 269,941,000 | |
Gross Unrealized Gains | 820,000 | 1,026,000 | |
Gross Unrealized Losses | 4,345,000 | 1,957,000 | |
Securities available-for-sale, at fair value | 375,582,000 | 269,010,000 | |
Available-for-sale, Fair Value [Abstract] | |||
Securities available-for-sale, at fair value | 375,582,000 | 269,010,000 | |
Corporate notes and other | |||
Securities available-for-sale [Abstract] | |||
Amortized Cost | 69,399,000 | 56,062,000 | |
Gross Unrealized Gains | 170,000 | 302,000 | |
Gross Unrealized Losses | 2,523,000 | 1,401,000 | |
Securities available-for-sale, at fair value | 67,046,000 | 54,963,000 | |
Available-for-sale, Fair Value [Abstract] | |||
Securities available-for-sale, at fair value | 67,046,000 | 54,963,000 | |
State and municipal securities | |||
Securities held-to-maturity [Abstract] | |||
Amortized Cost | 194,282,000 | 194,043,000 | |
Gross Unrealized Gains | 152,000 | 4,979,000 | |
Gross Unrealized Losses | 1,303,000 | 12,000 | |
Securities held-to-maturity, fair value | 193,131,000 | 199,010,000 | |
Held-to-maturity, Amortized Cost [Abstract] | |||
Amortized Cost | 194,282,000 | 194,043,000 | |
Held-to-maturity, Fair Value [Abstract] | |||
Fair Value | $ 193,131,000 | $ 199,010,000 |
Securities- Unrealized Losses (
Securities- Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an unrealized loss of less than 12 months, fair value | $ 443,073 | $ 1,347,820 |
Investments with an unrealized loss of less than 12 months, unrealized losses | 5,501 | 26,783 |
Investments with an unrealized loss of 12 months or longer, fair value | 1,166,184 | 1,161,369 |
Investments with an unrealized loss of 12 months or longer, unrealized losses | 18,593 | 32,811 |
Total investments with an unrealized loss, fair value | 1,609,257 | 2,509,189 |
Total investments with an unrealized loss, unrealized losses | 24,094 | 59,594 |
U.S. Treasury securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an unrealized loss of less than 12 months, fair value | 29,824 | 30,054 |
Investments with an unrealized loss of less than 12 months, unrealized losses | 3 | 22 |
Investments with an unrealized loss of 12 months or longer, fair value | 248 | 246 |
Investments with an unrealized loss of 12 months or longer, unrealized losses | 2 | 3 |
Total investments with an unrealized loss, fair value | 30,072 | 30,300 |
Total investments with an unrealized loss, unrealized losses | 5 | 25 |
U.S. government agency securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an unrealized loss of less than 12 months, fair value | 6,631 | 13,697 |
Investments with an unrealized loss of less than 12 months, unrealized losses | 58 | 328 |
Investments with an unrealized loss of 12 months or longer, fair value | 51,280 | 42,539 |
Investments with an unrealized loss of 12 months or longer, unrealized losses | 1,217 | 1,018 |
Total investments with an unrealized loss, fair value | 57,911 | 56,236 |
Total investments with an unrealized loss, unrealized losses | 1,275 | 1,346 |
Mortgage-backed securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an unrealized loss of less than 12 months, fair value | 82,112 | 203,299 |
Investments with an unrealized loss of less than 12 months, unrealized losses | 565 | 2,134 |
Investments with an unrealized loss of 12 months or longer, fair value | 987,424 | 882,231 |
Investments with an unrealized loss of 12 months or longer, unrealized losses | 15,760 | 26,500 |
Total investments with an unrealized loss, fair value | 1,069,536 | 1,085,530 |
Total investments with an unrealized loss, unrealized losses | 16,325 | 28,634 |
State and municipal securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an unrealized loss of less than 12 months, fair value | 161,772 | 805,821 |
Investments with an unrealized loss of less than 12 months, unrealized losses | 2,622 | 18,643 |
Investments with an unrealized loss of 12 months or longer, fair value | 80,686 | 198,610 |
Investments with an unrealized loss of 12 months or longer, unrealized losses | 509 | 4,078 |
Total investments with an unrealized loss, fair value | 242,458 | 1,004,431 |
Total investments with an unrealized loss, unrealized losses | 3,131 | 22,721 |
Asset-backed securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an unrealized loss of less than 12 months, fair value | 152,062 | 268,677 |
Investments with an unrealized loss of less than 12 months, unrealized losses | 1,534 | 4,118 |
Investments with an unrealized loss of 12 months or longer, fair value | 26,675 | 11,828 |
Investments with an unrealized loss of 12 months or longer, unrealized losses | 423 | 227 |
Total investments with an unrealized loss, fair value | 178,737 | 280,505 |
Total investments with an unrealized loss, unrealized losses | 1,957 | 4,345 |
Corporate notes | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an unrealized loss of less than 12 months, fair value | 10,672 | 26,272 |
Investments with an unrealized loss of less than 12 months, unrealized losses | 719 | 1,538 |
Investments with an unrealized loss of 12 months or longer, fair value | 19,871 | 25,915 |
Investments with an unrealized loss of 12 months or longer, unrealized losses | 682 | 985 |
Total investments with an unrealized loss, fair value | 30,543 | 52,187 |
Total investments with an unrealized loss, unrealized losses | $ 1,401 | $ 2,523 |
Securities Securities - Narrati
Securities Securities - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Securities pledged as collateral to secure public funds and other deposits or securities sold under agreements to repurchase | $ 1,231,000,000 | ||
Secured borrowing under agreement to repurchase | 100,698,000 | ||
Accumulated unrealized losses | 24,094,000 | $ 59,594,000 | |
Fair value of securities | 1,609,257,000 | $ 2,509,189,000 | |
Debt Securities Available-for-sale Sold Amount | 126,600,000 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (1,448,000) | $ 22,000 | |
Securities pledged as collateral | |||
Debt Securities, Available-for-sale [Line Items] | |||
Secured borrowing under agreement to repurchase | $ 100,698,000 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses Loans and Allowance for Loan Losses - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled Debt Restructuring, Modifications, Number of Contracts | 0 | 0 | |
Percentage of loan portfolio as commercial loan | 81.10% | ||
Risk rated loans | $ 1,000,000 | ||
Average balance of impaired loans | 89,575,000 | $ 64,223,000 | |
Cash payments received on nonaccrual loans | 87,000 | ||
Nonaccrual loans | 1,600,000 | 1,400,000 | |
Troubled debt restructurings performing as of restructure date | $ 5,480,000 | $ 5,890,000 | |
Percentage of credit exposure to risk based capital | 25.00% | ||
Loans and other extensions of credit granted to directors, executive officers, and their related entities | $ 38,400,000 | 37,900,000 | |
Amount drawn from loans and other extensions of credit granted | 18,100,000 | 18,300,000 | |
Commercial loans held-for-sale | 14,456,000 | 15,954,000 | |
Mortgage loans held-for-sale | 45,500,000 | $ 31,800,000 | |
Loans sold | 193,800,000 | 247,100,000 | |
Gain on mortgage loans sold, net | $ 4,878,000 | $ 3,744,000 | |
Construction and land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of credit exposure to risk based capital | 84.10% | 85.20% | |
Non-owner occupied commercial real estate and multifamily loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of credit exposure to risk based capital | 282.50% | 277.70% |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Loan Classification by Risk Rating Category (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 18,174,906,000 | $ 17,707,549,000 | |
Potential problem loans not included in nonperforming assets | 190,300,000 | 176,300,000 | |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 17,776,254,000 | 17,346,673,000 | |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 109,001,000 | 93,163,000 | |
Substandard-accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | [1] | 193,507,000 | 179,879,000 |
Substandard-nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 96,144,000 | 87,834,000 | |
Doubtful-nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial real estate - mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 7,419,146,000 | 7,164,954,000 | |
Commercial real estate - mortgage | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 7,252,503,000 | 6,998,485,000 | |
Commercial real estate - mortgage | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 51,552,000 | 55,932,000 | |
Commercial real estate - mortgage | Substandard-accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | [1] | 76,171,000 | 78,202,000 |
Commercial real estate - mortgage | Substandard-nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 38,920,000 | 32,335,000 | |
Commercial real estate - mortgage | Doubtful-nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Consumer real estate - mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,887,628,000 | 2,844,447,000 | |
Consumer real estate - mortgage | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,830,701,000 | 2,787,570,000 | |
Consumer real estate - mortgage | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 6,916,000 | 7,902,000 | |
Consumer real estate - mortgage | Substandard-accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | [1] | 17,880,000 | 20,906,000 |
Consumer real estate - mortgage | Substandard-nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 32,131,000 | 28,069,000 | |
Consumer real estate - mortgage | Doubtful-nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Construction and land development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,097,570,000 | 2,072,455,000 | |
Construction and land development | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,083,602,000 | 2,059,376,000 | |
Construction and land development | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 7,843,000 | 4,334,000 | |
Construction and land development | Substandard-accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | [1] | 3,350,000 | 5,358,000 |
Construction and land development | Substandard-nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,775,000 | 3,387,000 | |
Construction and land development | Doubtful-nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,419,520,000 | 5,271,421,000 | |
Commercial and industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,259,503,000 | 5,148,726,000 | |
Commercial and industrial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 41,980,000 | 24,284,000 | |
Commercial and industrial | Substandard-accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | [1] | 96,049,000 | 75,351,000 |
Commercial and industrial | Substandard-nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 21,988,000 | 23,060,000 | |
Commercial and industrial | Doubtful-nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Consumer and other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 351,042,000 | 354,272,000 | |
Consumer and other | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 349,945,000 | 352,516,000 | |
Consumer and other | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 710,000 | 711,000 | |
Consumer and other | Substandard-accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | [1] | 57,000 | 62,000 |
Consumer and other | Substandard-nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 330,000 | 983,000 | |
Consumer and other | Doubtful-nonaccrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 0 | $ 0 | |
[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 $190.3 million at March 31, 2019, compared to $176.3 million at December 31, 2018. |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Rollforward of Purchase Credit Impaired Loans (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Gross Carrying Value | |
Gross carrying value, beginning balance | $ 42,837 |
Acquisitions | 0 |
Year-to-date settlements | (2,951) |
Gross carrying value, ending balance | 39,886 |
Accretable Yield | |
Accretable yield, beginning balance | (114) |
Acquired Accretable Yield | 0 |
Year-to-date settlements | 12 |
Accretable yield, ending balance | (102) |
Nonaccretable Yield | |
Nonaccretable yield, beginning balance | (17,394) |
Acquired Nonaccretable Yield | 0 |
Year-to-date settlements | 1,312 |
Nonaccretable yield, ending balance | (16,082) |
Net Carrying Value | |
Net carrying value, beginning balance | 25,329 |
Acquisitions | 0 |
Year-to-date settlements | (1,627) |
Net carrying value, ending balance | $ 23,702 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Recorded Investment, Principal Balance and Related Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | $ 96,004 | $ 83,146 | |
Unpaid principal balances | 96,172 | 83,337 | |
Valuation allowance | 5,518 | 3,964 | |
Average recorded investment | 89,575 | $ 64,223 | |
Interest income recognized | 87 | 101 | |
Impaired loans with an allowance: | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 53,208 | 44,794 | |
Unpaid principal balances | 53,316 | 44,914 | |
Valuation allowance | 5,518 | 3,964 | |
Average recorded investment | 49,001 | 26,972 | |
Interest income recognized | 0 | 0 | |
Impaired loans with an allowance: | Commercial real estate - mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 18,539 | 14,114 | |
Unpaid principal balances | 18,543 | 14,124 | |
Valuation allowance | 1,521 | 724 | |
Average recorded investment | 16,327 | 5,119 | |
Interest income recognized | 0 | 0 | |
Impaired loans with an allowance: | Consumer real estate - mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 24,668 | 19,864 | |
Unpaid principal balances | 24,784 | 19,991 | |
Valuation allowance | 2,381 | 1,443 | |
Average recorded investment | 22,266 | 8,792 | |
Interest income recognized | 0 | 0 | |
Impaired loans with an allowance: | Construction and land development | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 868 | 581 | |
Unpaid principal balances | 864 | 579 | |
Valuation allowance | 55 | 28 | |
Average recorded investment | 724 | 1,451 | |
Interest income recognized | 0 | 0 | |
Impaired loans with an allowance: | Commercial and industrial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 8,802 | 9,252 | |
Unpaid principal balances | 8,773 | 9,215 | |
Valuation allowance | 1,461 | 1,441 | |
Average recorded investment | 9,027 | 11,220 | |
Interest income recognized | 0 | 0 | |
Impaired loans with an allowance: | Consumer and other | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 331 | 983 | |
Unpaid principal balances | 352 | 1,005 | |
Valuation allowance | 100 | 328 | |
Average recorded investment | 657 | 390 | |
Interest income recognized | 0 | 0 | |
Impaired loans without an allowance: | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 42,796 | 38,352 | |
Unpaid principal balances | 42,856 | 38,423 | |
Valuation allowance | 0 | 0 | |
Average recorded investment | 40,574 | 37,251 | |
Interest income recognized | 87 | 101 | |
Impaired loans without an allowance: | Commercial real estate - mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 16,674 | 14,724 | |
Unpaid principal balances | 16,678 | 14,739 | |
Valuation allowance | 0 | 0 | |
Average recorded investment | 15,699 | 15,375 | |
Interest income recognized | 87 | 101 | |
Impaired loans without an allowance: | Consumer real estate - mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 10,431 | 7,247 | |
Unpaid principal balances | 10,466 | 7,271 | |
Valuation allowance | 0 | 0 | |
Average recorded investment | 8,839 | 4,369 | |
Interest income recognized | 0 | 0 | |
Impaired loans without an allowance: | Construction and land development | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 1,786 | |
Unpaid principal balances | 0 | 1,786 | |
Valuation allowance | 0 | 0 | |
Average recorded investment | 893 | 1,322 | |
Interest income recognized | 0 | 0 | |
Impaired loans without an allowance: | Commercial and industrial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 15,691 | 14,595 | |
Unpaid principal balances | 15,712 | 14,627 | |
Valuation allowance | 0 | 0 | |
Average recorded investment | 15,143 | 16,185 | |
Interest income recognized | 0 | 0 | |
Impaired loans without an allowance: | Consumer and other | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 0 | |
Unpaid principal balances | 0 | 0 | |
Valuation allowance | 0 | $ 0 | |
Average recorded investment | 0 | 0 | |
Interest income recognized | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Industry Classification System (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Lessors of nonresidential buildings | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Principal Balances | $ 3,208,737 | |
Unfunded Commitments | 894,936 | |
Total exposure | 4,103,673 | $ 3,932,059 |
Lessors of residential buildings | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Principal Balances | 1,038,462 | |
Unfunded Commitments | 335,860 | |
Total exposure | 1,374,322 | 1,484,697 |
Hotels (except for Casino Hotels) and Motels | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Principal Balances | 825,627 | |
Unfunded Commitments | 137,885 | |
Total exposure | 963,512 | 920,001 |
236117 New Housing Operative Builders [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Principal Balances | 509,750 | |
Unfunded Commitments | 586,983 | |
Total exposure | $ 1,096,733 | $ 1,100,989 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Financing Receivables Past Due (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | $ 18,174,906,000 | $ 17,707,549,000 | |
Nonaccrual loans | [1] | 85,564,000 | 77,248,000 |
Currently performing impaired loans | 47,400,000 | 52,500,000 | |
Purchased credit impaired, accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 13,122,000 | 14,743,000 | |
Purchased credit impaired, nonaccruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 10,580,000 | 10,586,000 | |
Past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 40,434,000 | 59,859,000 | |
30-89 days past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 38,452,000 | 58,301,000 | |
90 days or more past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 1,982,000 | 1,558,000 | |
Current and Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 18,025,206,000 | 17,545,113,000 | |
Commercial Real Estate [Member] | Owner-occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 2,653,433,000 | ||
Nonaccrual loans | [1] | 16,025,000 | |
Commercial Real Estate [Member] | Owner-occupied | Purchased credit impaired, accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 2,664,000 | ||
Commercial Real Estate [Member] | Owner-occupied | Purchased credit impaired, nonaccruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 874,000 | ||
Commercial Real Estate [Member] | Owner-occupied | Past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 10,170,000 | ||
Commercial Real Estate [Member] | Owner-occupied | 30-89 days past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 10,170,000 | ||
Commercial Real Estate [Member] | Owner-occupied | 90 days or more past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 0 | ||
Commercial Real Estate [Member] | Owner-occupied | Current and Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 2,623,700,000 | ||
Commercial Real Estate [Member] | All other | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 4,511,521,000 | ||
Nonaccrual loans | [1] | 12,634,000 | |
Commercial Real Estate [Member] | All other | Purchased credit impaired, accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 5,659,000 | ||
Commercial Real Estate [Member] | All other | Purchased credit impaired, nonaccruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 2,802,000 | ||
Commercial Real Estate [Member] | All other | Past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 1,586,000 | ||
Commercial Real Estate [Member] | All other | 30-89 days past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 1,586,000 | ||
Commercial Real Estate [Member] | All other | 90 days or more past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 0 | ||
Commercial Real Estate [Member] | All other | Current and Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 4,488,840,000 | ||
Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 2,844,447,000 | ||
Nonaccrual loans | [1] | 22,564,000 | |
Residential Mortgage [Member] | Purchased credit impaired, accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 3,689,000 | ||
Residential Mortgage [Member] | Purchased credit impaired, nonaccruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 5,505,000 | ||
Residential Mortgage [Member] | Past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 18,059,000 | ||
Residential Mortgage [Member] | 30-89 days past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 18,059,000 | ||
Residential Mortgage [Member] | 90 days or more past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 0 | ||
Residential Mortgage [Member] | Current and Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 2,794,630,000 | ||
Commercial real estate - mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 7,419,146,000 | 7,164,954,000 | |
Commercial real estate - mortgage | Owner-occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 2,617,541,000 | ||
Nonaccrual loans | [1] | 22,436,000 | |
Commercial real estate - mortgage | Owner-occupied | Purchased credit impaired, accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 2,577,000 | ||
Commercial real estate - mortgage | Owner-occupied | Purchased credit impaired, nonaccruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 1,117,000 | ||
Commercial real estate - mortgage | Owner-occupied | Past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 8,302,000 | ||
Commercial real estate - mortgage | Owner-occupied | 30-89 days past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 8,302,000 | ||
Commercial real estate - mortgage | Owner-occupied | 90 days or more past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 0 | ||
Commercial real estate - mortgage | Owner-occupied | Current and Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 2,583,109,000 | ||
Commercial real estate - mortgage | All other | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 4,801,605,000 | ||
Nonaccrual loans | [1] | 12,601,000 | |
Commercial real estate - mortgage | All other | Purchased credit impaired, accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 5,119,000 | ||
Commercial real estate - mortgage | All other | Purchased credit impaired, nonaccruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 2,761,000 | ||
Commercial real estate - mortgage | All other | Past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 6,569,000 | ||
Commercial real estate - mortgage | All other | 30-89 days past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 6,569,000 | ||
Commercial real estate - mortgage | All other | 90 days or more past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 0 | ||
Commercial real estate - mortgage | All other | Current and Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 4,774,555,000 | ||
Consumer real estate - mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 2,887,628,000 | 2,844,447,000 | |
Nonaccrual loans | [1] | 27,336,000 | |
Consumer real estate - mortgage | Purchased credit impaired, accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 3,683,000 | ||
Consumer real estate - mortgage | Purchased credit impaired, nonaccruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 4,795,000 | ||
Consumer real estate - mortgage | Past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 11,021,000 | ||
Consumer real estate - mortgage | 30-89 days past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 10,982,000 | ||
Consumer real estate - mortgage | 90 days or more past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 39,000 | ||
Consumer real estate - mortgage | Current and Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 2,840,793,000 | ||
Construction and land development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 2,097,570,000 | 2,072,455,000 | |
Nonaccrual loans | [1] | 868,000 | 2,020,000 |
Construction and land development | Purchased credit impaired, accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 1,437,000 | 2,108,000 | |
Construction and land development | Purchased credit impaired, nonaccruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 1,907,000 | 1,367,000 | |
Construction and land development | Past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 795,000 | 3,759,000 | |
Construction and land development | 30-89 days past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 795,000 | 3,759,000 | |
Construction and land development | 90 days or more past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 0 | 0 | |
Construction and land development | Current and Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 2,092,563,000 | 2,063,201,000 | |
Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 5,419,520,000 | 5,271,421,000 | |
Nonaccrual loans | [1] | 21,993,000 | 23,022,000 |
Commercial and industrial | Purchased credit impaired, accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 306,000 | 623,000 | |
Commercial and industrial | Purchased credit impaired, nonaccruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 0 | 38,000 | |
Commercial and industrial | Past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 10,391,000 | 22,533,000 | |
Commercial and industrial | 30-89 days past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 9,068,000 | 21,451,000 | |
Commercial and industrial | 90 days or more past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 1,323,000 | 1,082,000 | |
Commercial and industrial | Current and Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 5,386,830,000 | 5,225,205,000 | |
Consumer and other | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 351,042,000 | 354,272,000 | |
Nonaccrual loans | [1] | 330,000 | 983,000 |
Consumer and other | Purchased credit impaired, accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 0 | 0 | |
Consumer and other | Purchased credit impaired, nonaccruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 0 | 0 | |
Consumer and other | Past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 3,356,000 | 3,752,000 | |
Consumer and other | 30-89 days past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 2,736,000 | 3,276,000 | |
Consumer and other | 90 days or more past due and accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 620,000 | 476,000 | |
Consumer and other | Current and Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | $ 347,356,000 | $ 349,537,000 | |
[1] | Approximately $47.4 million and $52.5 million of nonaccrual loans as of March 31, 2019 and December 31, 2018, respectively, were performing pursuant to their contractual terms at those dates. |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Allowance Allocation (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Allowance for Loan Losses | $ 87,194,000 | $ 83,575,000 |
Troubled debt restructurings performing as of restructure date | 5,480,000 | 5,890,000 |
Troubled Debt Restructurings | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Allowance for Loan Losses | $ 0 | $ 0 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Allowance for Credit Losses (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | $ 83,575,000 | $ 67,240,000 |
Charged-off loans | (6,068,000) | (8,669,000) |
Recovery of previously charged-off loans | 2,503,000 | 4,702,000 |
Provision for loan losses | 7,184,000 | 6,931,000 |
Ending Balance | 87,194,000 | 70,204,000 |
Commercial real estate - mortgage | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | 26,946,000 | 21,188,000 |
Charged-off loans | (534,000) | (728,000) |
Recovery of previously charged-off loans | 72,000 | 1,396,000 |
Provision for loan losses | 3,683,000 | 832,000 |
Ending Balance | 30,167,000 | 22,688,000 |
Consumer real estate - mortgage | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | 7,670,000 | 5,031,000 |
Charged-off loans | (350,000) | (336,000) |
Recovery of previously charged-off loans | 369,000 | 666,000 |
Provision for loan losses | 680,000 | (261,000) |
Ending Balance | 8,369,000 | 5,100,000 |
Construction and land development | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | 11,128,000 | 8,962,000 |
Charged-off loans | 0 | (2,000) |
Recovery of previously charged-off loans | 122,000 | 565,000 |
Provision for loan losses | (335,000) | 591,000 |
Ending Balance | 10,915,000 | 10,116,000 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | 31,731,000 | 24,863,000 |
Charged-off loans | (3,352,000) | (2,540,000) |
Recovery of previously charged-off loans | 1,598,000 | 888,000 |
Provision for loan losses | 2,722,000 | 3,437,000 |
Ending Balance | 32,699,000 | 26,648,000 |
Consumer and other | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | 5,423,000 | 5,874,000 |
Charged-off loans | (1,832,000) | (5,063,000) |
Recovery of previously charged-off loans | 342,000 | 1,187,000 |
Provision for loan losses | 870,000 | 3,478,000 |
Ending Balance | 4,803,000 | 5,476,000 |
Unallocated | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | 677,000 | 1,322,000 |
Charged-off loans | 0 | 0 |
Recovery of previously charged-off loans | 0 | 0 |
Provision for loan losses | (436,000) | (1,146,000) |
Ending Balance | $ 241,000 | $ 176,000 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Details on Allowance for Loan Losses and Recorded Investment by Loan Classification and Impairment Evaluation Method (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Collectively evaluated for impairment | $ 81,435,000 | $ 78,934,000 | |||
Individually evaluated for impairment | 5,518,000 | 3,964,000 | |||
Total allowance for loan losses | 87,194,000 | 83,575,000 | $ 70,204,000 | $ 67,240,000 | |
Collectively evaluated for impairment | 18,055,200,000 | 17,599,074,000 | |||
Individually evaluated for impairment | 96,004,000 | 83,146,000 | |||
Loans | 18,174,906,000 | 17,707,549,000 | |||
Loans acquired with deteriorated credit quality(1) | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total allowance for loan losses | [1] | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 23,702,000 | 25,329,000 | |||
Commercial real estate - mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Collectively evaluated for impairment | 28,646,000 | 26,222,000 | |||
Individually evaluated for impairment | 1,521,000 | 724,000 | |||
Total allowance for loan losses | 30,167,000 | 26,946,000 | 22,688,000 | 21,188,000 | |
Collectively evaluated for impairment | 7,372,359,000 | 7,124,117,000 | |||
Individually evaluated for impairment | 35,213,000 | 28,838,000 | |||
Loans | 7,419,146,000 | 7,164,954,000 | |||
Commercial real estate - mortgage | Loans acquired with deteriorated credit quality(1) | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total allowance for loan losses | [1] | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 11,574,000 | 11,999,000 | |||
Consumer real estate - mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Collectively evaluated for impairment | 5,988,000 | 6,227,000 | |||
Individually evaluated for impairment | 2,381,000 | 1,443,000 | |||
Total allowance for loan losses | 8,369,000 | 7,670,000 | 5,100,000 | 5,031,000 | |
Collectively evaluated for impairment | 2,844,051,000 | 2,808,142,000 | |||
Individually evaluated for impairment | 35,099,000 | 27,111,000 | |||
Loans | 2,887,628,000 | 2,844,447,000 | |||
Consumer real estate - mortgage | Loans acquired with deteriorated credit quality(1) | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total allowance for loan losses | [1] | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 8,478,000 | 9,194,000 | |||
Construction and land development | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Collectively evaluated for impairment | 10,860,000 | 11,100,000 | |||
Individually evaluated for impairment | 55,000 | 28,000 | |||
Total allowance for loan losses | 10,915,000 | 11,128,000 | 10,116,000 | 8,962,000 | |
Collectively evaluated for impairment | 2,093,358,000 | 2,066,613,000 | |||
Individually evaluated for impairment | 868,000 | 2,367,000 | |||
Loans | 2,097,570,000 | 2,072,455,000 | |||
Construction and land development | Loans acquired with deteriorated credit quality(1) | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total allowance for loan losses | [1] | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 3,344,000 | 3,475,000 | |||
Commercial and industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Collectively evaluated for impairment | 31,238,000 | 30,290,000 | |||
Individually evaluated for impairment | 1,461,000 | 1,441,000 | |||
Total allowance for loan losses | 32,699,000 | 31,731,000 | 26,648,000 | 24,863,000 | |
Collectively evaluated for impairment | 5,394,721,000 | 5,246,913,000 | |||
Individually evaluated for impairment | 24,493,000 | 23,847,000 | |||
Loans | 5,419,520,000 | 5,271,421,000 | |||
Commercial and industrial | Loans acquired with deteriorated credit quality(1) | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total allowance for loan losses | [1] | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 306,000 | 661,000 | |||
Consumer and other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Collectively evaluated for impairment | 4,703,000 | 5,095,000 | |||
Individually evaluated for impairment | 100,000 | 328,000 | |||
Total allowance for loan losses | 4,803,000 | 5,423,000 | 5,476,000 | 5,874,000 | |
Collectively evaluated for impairment | 350,711,000 | 353,289,000 | |||
Individually evaluated for impairment | 331,000 | 983,000 | |||
Loans | 351,042,000 | 354,272,000 | |||
Consumer and other | Loans acquired with deteriorated credit quality(1) | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total allowance for loan losses | [1] | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | |||
Unallocated | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Collectively evaluated for impairment | |||||
Individually evaluated for impairment | |||||
Total allowance for loan losses | 241,000 | 677,000 | $ 176,000 | $ 1,322,000 | |
Unallocated | Loans acquired with deteriorated credit quality(1) | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total allowance for loan losses | [1] | ||||
[1] | Loans acquired with deteriorated credit quality are recorded at fair value at the time of acquisition. An allowance for loan losses is recorded only in the event of subsequent credit deterioration. |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 5,100 | $ 2,800 |
Interest and penalties | $ 0 | $ 0 |
Effective income tax rate (as percent) | 19.70% | 19.00% |
Federal and State income tax statutory rate (as percent) | 26.14% | 26.14% |
Excess tax benefit | $ 769 | $ 2,700 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | |
Expiry period of standby letter of credit, maximum | 2 years |
Accrual for inherent risks associated with commitments | $ 2,900 |
Commitments | |
Loss Contingencies [Line Items] | |
Amount of commitment | 7,397,000 |
Home Equity Line of Credit [Member] | |
Loss Contingencies [Line Items] | |
Amount of commitment | 1,000,368 |
Standby letter of credit | |
Loss Contingencies [Line Items] | |
Amount of commitment | $ 191,300 |
Stock Options and Restricted _3
Stock Options and Restricted Shares - Narrative (Details) - USD ($) | Jul. 31, 2015 | Mar. 31, 2019 | Mar. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 4,913,000 | $ 4,448,000 | |
Remaining Share-Based Compensation on Unvested Restricted Stock Awards | $ 49,100,000 | ||
Weighted Average Remaining Period of Sharebased Compensation Expense | 1 year 9 months 7 days | ||
2018 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuances (in shares) | 1,250,000 | ||
BNC Bancorp 2013 Omnibus Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuances (in shares) | 9,000 | ||
Plans other than 2018 Omnibus Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuances (in shares) | 0 | ||
CapitalMark Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuances (in shares) | 0 | ||
Shares acquired in period (in shares) | 858,000 |
Stock Options and Restricted _4
Stock Options and Restricted Shares - Common Stock Options (Details) - Common stock options - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | ||||
Number | |||||
Outstanding, beginning balance (in shares) | 176,709 | ||||
Granted (in shares) | 0 | ||||
Exercised (in shares) | (5,200) | ||||
Forfeited (in shares) | 0 | ||||
Outstanding, ending balance (in shares) | 171,509 | 176,709 | |||
Weighted-Average Exercise Price | |||||
Outstanding, beginning balance (in dollars per share) | $ 22.77 | ||||
Outstanding, ending balance (in dollars per share) | $ 22.70 | $ 22.77 | |||
Additional disclosures | |||||
Options exercisable (in shares) | 171,509 | ||||
Weighted- average exercise price of options exercisable (in dollars per share) | $ 22.70 | ||||
Weighted-average contractual remaining term for options outstanding | 3 years 22 days | 2 years 2 months 23 days | |||
Weighted-average contractual remaining term for options exercisable | 3 years 22 days | ||||
Aggregate intrinsic value | $ 5,488 | [1] | $ 4,123 | [2] | |
Aggregate intrinsic value of options exercisable | [1] | $ 5,488 | |||
Quoted closing price of common stock (in dollars per share) | $ 54.7 | $ 46.1 | |||
Number of awards used in aggregate intrinsic value (in shares) | 171,509 | 176,709 | |||
[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 $54.70 per common share at March 31, 2019 for the 171,509 options that were in-the-money at March 31, 2019. | ||||
[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 $46.10 per common share at December 31, 2018 for the 176,709 options that were in-the-money at December 31, 2018. |
Stock Options and Restricted _5
Stock Options and Restricted Shares - Unvested Restricted Awards (Details) - Restricted stock | 3 Months Ended | |
Mar. 31, 2019$ / sharesshares | ||
Number | ||
Unvested, beginning of period (in shares) | 692,806 | |
Shares awarded (in shares) | 192,110 | |
Restrictions lapsed and shares released to associates/directors (in shares) | (212,247) | |
Shares forfeited (in shares) | (11,970) | [1] |
Unvested, end of period (in shares) | 660,699 | |
Grant Date Weighted-Average Cost | ||
Unvested, beginning of period (in dollars per share) | $ / shares | $ 55.19 | |
Unvested, end of period (in dollars per share) | $ / shares | $ 53.30 | |
Shares forfeited due to failure to meet performance targets (in shares) | 0 | |
[1] | Represents shares forfeited due to employee termination and/or retirement. No shares were forfeited due to failure to meet performance targets. |
Stock Options and Restricted _6
Stock Options and Restricted Shares - Restricted Shares Awarded (Details) | 3 Months Ended | |
Mar. 31, 2019shares | [1] | |
Time Based Awards | Associates | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded | 175,561 | [2] |
Restrictions Lapsed and shares released to participants | 169 | [2] |
Shares Forfeited by participants | 2,616 | [2],[3] |
Shares Unvested | 172,776 | [2] |
Time Based Awards | Associates | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting Period in years | 3 years | [2] |
Time Based Awards | Associates | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting Period in years | 5 years | [2] |
Outside Director Awards | Outside directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting Period in years | 1 year | [4] |
Shares awarded | 16,549 | [4] |
Restrictions Lapsed and shares released to participants | 0 | [4] |
Shares Forfeited by participants | 0 | [3],[4] |
Shares Unvested | 16,549 | [4] |
[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 performance-based vesting 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] | These shares represent forfeitures resulting from recipients whose employment or board membership is terminated during the year-to-date period ended March 31, 2019. 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. | |
[4] | Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapse on February 29, 2020 based on each individual board member meeting their attendance goals for the various board and board committee meetings to which each member was scheduled to attend. |
Stock Options and Restricted _7
Stock Options and Restricted Shares - Restricted Share Unit Awards Outstanding (Details) | 3 Months Ended | |
Mar. 31, 2019shares | ||
2019 Restricted granted shares | Tranche 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 3 years | |
2019 Restricted granted shares | Tranche 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 2 years | |
2019 Restricted granted shares | Tranche 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 1 year | |
2019 Restricted granted shares | Named Executive Officers (NEOs) | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 166,211 | [1] |
2019 Restricted granted shares | Named Executive Officers (NEOs) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 249,343 | [1] |
2019 Restricted granted shares | Leadership Team other than NEOs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 52,244 | |
2018 Restricted granted shares | Tranche 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 3 years | |
2018 Restricted granted shares | Tranche 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 2 years | |
2018 Restricted granted shares | Tranche 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 1 year | |
2018 Restricted granted shares | Named Executive Officers (NEOs) | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 96,878 | [1] |
2018 Restricted granted shares | Named Executive Officers (NEOs) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 145,339 | [1] |
2018 Restricted granted shares | Leadership Team other than NEOs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 25,990 | |
2017 Restricted granted shares | Tranche 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 3 years | |
2017 Restricted granted shares | Tranche 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 2 years | |
2017 Restricted granted shares | Tranche 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 1 year | |
2017 Restricted granted shares | Named Executive Officers (NEOs) | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 72,537 | [1] |
2017 Restricted granted shares | Named Executive Officers (NEOs) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 109,339 | [1] |
2017 Restricted granted shares | Leadership Team other than NEOs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 24,916 | |
2016 Restricted granted shares | Tranche 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 3 years | |
2016 Restricted granted shares | Tranche 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 2 years | |
2016 Restricted granted shares | Tranche 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 1 year | |
2016 Restricted granted shares | Named Executive Officers (NEOs) | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 73,474 | [1] |
2016 Restricted granted shares | Named Executive Officers (NEOs) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 110,223 | [1] |
2016 Restricted granted shares | Leadership Team other than NEOs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 26,683 | |
2015 Restricted granted shares | Tranche 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 3 years | |
2015 Restricted granted shares | Tranche 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 2 years | |
2015 Restricted granted shares | Tranche 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period per tranche (in years) | 2 years | |
Subsequent holding period per tranche (in years) | 1 year | |
2015 Restricted granted shares | Named Executive Officers (NEOs) | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 58,200 | [1] |
2015 Restricted granted shares | Named Executive Officers (NEOs) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 101,850 | [1] |
2015 Restricted granted shares | Leadership Team other than NEOs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded (in shares) | 28,378 | |
[1] | The named executive officers are awarded a range of awards that may be earned based on attainment of goals between a target level of performance and a maximum level of performance. |
Derivative Instruments - Non-he
Derivative Instruments - Non-hedge Derivatives (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Description of Location of Gain (Loss) on Interest Rate Derivative on Income Statement | Other noninterest income | ||
Derivative, Gain (Loss) on Derivative, Net | $ (13) | $ (20) | |
Notional Amount | 2,193,298 | $ 2,119,448 | |
Estimated Fair Value | $ (141) | (128) | |
Assets | |||
Derivative [Line Items] | |||
Description of Location of Interest Rate Derivatives on Balance Sheet | Other assets | ||
Notional Amount | $ 1,096,649 | 1,059,724 | |
Estimated Fair Value | $ 24,555 | 22,273 | |
Liabilities | |||
Derivative [Line Items] | |||
Description of Location of Interest Rate Derivatives on Balance Sheet | Other liabilities | ||
Notional Amount | $ 1,096,649 | 1,059,724 | |
Estimated Fair Value | $ (24,696) | $ (22,401) |
Derivative Instruments - Hedge
Derivative Instruments - Hedge Derivatives (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Derivative [Line Items] | ||||
Closed Portfolio and Beneficial Interest, Last-of-Layer, Amortized Cost | $ 2,700,000,000 | $ 2,700,000,000 | ||
Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Description of Location of Gain (Loss) on Interest Rate Derivative on Income Statement | Other noninterest income | |||
Derivative, Gain (Loss) on Derivative, Net | $ (13,000) | (20,000) | ||
Hedging derivative | Cash flow hedge | ||||
Derivative [Line Items] | ||||
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | $ (523,000) | 1,720,000 | ||
Hedging derivative | Fair value hedge | ||||
Derivative [Line Items] | ||||
Weighted Average Remaining Maturity | 4 years 3 months 4 days | |||
Pay Rate (as percent) | 2.88% | |||
Forecasted Notional Amount | $ 1,377,905,000 | $ 1,377,905,000 | ||
Fair Value Hedge Assets | $ (36,967,000) | (21,833,000) | ||
Hedging derivative | Fair value hedge | Loans | ||||
Derivative [Line Items] | ||||
Weighted Average Remaining Maturity | 2 years 4 months 21 days | |||
Pay Rate (as percent) | 2.77% | |||
Receive Rate | 3 month LIBOR | |||
Forecasted Notional Amount | $ 900,000,000 | 900,000,000 | ||
Fair Value Hedge Assets | (11,891,000) | (7,037,000) | ||
Derivative Instruments and Hedges, Assets | [1] | 911,891,000 | 907,037,000 | |
Fair Value Hedging Adjustment | [1] | $ 11,891,000 | 7,037,000 | |
Description of Location of Gain (Loss) on Interest Rate Derivative on Income Statement | Interest income on loans | |||
Description of Location of Interest Rate Fair Value Hedge Derivative on Balance Sheet | Other liabilities | |||
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | $ 4,854,000 | 0 | ||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | $ (4,854,000) | 0 | ||
Hedging derivative | Fair value hedge | Securities | ||||
Derivative [Line Items] | ||||
Weighted Average Remaining Maturity | 7 years 9 months 18 days | |||
Pay Rate (as percent) | 3.08% | |||
Receive Rate | 3 month LIBOR | |||
Forecasted Notional Amount | $ 477,905,000 | 477,905,000 | ||
Fair Value Hedge Assets | (25,076,000) | (14,796,000) | ||
Derivative Instruments and Hedges, Assets | 528,900,000 | 513,116,000 | ||
Fair Value Hedging Adjustment | $ 25,076,000 | 14,796,000 | ||
Description of Location of Gain (Loss) on Interest Rate Derivative on Income Statement | Interest income on securities | |||
Description of Location of Interest Rate Fair Value Hedge Derivative on Balance Sheet | Other liabilities | |||
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | $ 10,280,000 | (1,579,000) | ||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | $ (10,280,000) | $ 1,579,000 | ||
Liability derivatives | Hedging derivative | Cash flow hedge | ||||
Derivative [Line Items] | ||||
Description of Location of Interest Rate Derivatives on Balance Sheet | Other liabilities | |||
Weighted Average Remaining Maturity | 3 years 1 month 6 days | |||
Pay Rate (as percent) | 3.09% | |||
Receive Rate | 3 month LIBOR | |||
Forecasted Notional Amount | $ 99,000,000 | 99,000,000 | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net | $ (2,466,000) | $ (1,757,000) | ||
[1] | The carrying amount as shown represents the designated last-of-layer. At March 31, 2019 and December 31, 2018, the total amortized cost basis of the closed portfolio of loans designated in these hedging relationships was $2.7 billion. |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | |||
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Abstract] | ||||
Valuation allowance | $ 5,518 | $ 3,964 | ||
Recurring | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
U.S. Treasury securities | 48,612 | 30,300 | ||
U.S. government agency securities | 66,969 | 70,159 | ||
Mortgage-backed securities | 1,359,721 | 1,310,945 | ||
State and municipal securities | 1,450,731 | 1,229,654 | ||
Agency-backed securities | 269,010 | 375,582 | ||
Corporate notes and other | 54,963 | 67,046 | ||
Total investment securities available-for-sale | 3,250,006 | 3,083,686 | ||
Other Investments | 52,806 | 50,791 | ||
Other assets | 27,943 | 24,524 | ||
Total assets at fair value | 3,330,755 | 3,159,001 | ||
Liabilities at fair value: [Abstract] | ||||
Other liabilities | 64,746 | 46,550 | ||
Total liabilities at fair value | 64,746 | 46,550 | ||
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 | 48,612 | 30,300 | ||
U.S. government agency securities | 66,969 | 70,159 | ||
Mortgage-backed securities | 1,359,721 | 1,310,945 | ||
State and municipal securities | 1,437,001 | 1,215,059 | ||
Agency-backed securities | 269,010 | 375,582 | ||
Corporate notes and other | 54,963 | 67,046 | ||
Total investment securities available-for-sale | 3,236,276 | 3,069,091 | ||
Other Investments | 24,699 | 24,369 | ||
Other assets | 27,943 | 24,524 | ||
Total assets at fair value | 3,288,918 | 3,117,984 | ||
Liabilities at fair value: [Abstract] | ||||
Other liabilities | 64,746 | 46,550 | ||
Total liabilities at fair value | 64,746 | 46,550 | ||
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 | 13,730 | 14,595 | ||
Agency-backed securities | 0 | 0 | ||
Corporate notes and other | 0 | 0 | ||
Total investment securities available-for-sale | 13,730 | 14,595 | ||
Other Investments | 28,107 | 26,422 | ||
Other assets | 0 | 0 | ||
Total assets at fair value | 41,837 | 41,017 | ||
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 | 62,767 | 55,995 | ||
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Abstract] | ||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [1] | 47,690 | 40,830 | |
Other real estate owned | 15,077 | 15,165 | ||
Gain (Loss) on Other real estate owned | 50 | (84) | ||
Total losses on impaired loans, net | (1,113) | [1] | (1,214) | |
Total gains (losses) for the year-to-date period then ended | (1,063) | (1,298) | ||
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] | ||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [1] | 0 | 0 | |
Other real estate owned | 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] | ||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [1] | 0 | 0 | |
Other real estate owned | 0 | 0 | ||
Nonrecurring | Models with significant unobservable market parameters (Level 3) | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Total assets at fair value | 62,767 | 55,995 | ||
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Abstract] | ||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [1] | 47,690 | 40,830 | |
Other real estate owned | $ 15,077 | $ 15,165 | ||
[1] | Amount is net of valuation allowance of $5.5 million and $4.0 million at March 31, 2019 and December 31, 2018, respectively, as required by ASC 310-10, "Receivables." |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Rollforward of Balance Sheet Amounts Within Level 3 Valuation Hierarchy (Details) - Recurring - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Liabilities | ||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | ||
Fair value, beginning of period | $ 0 | $ 0 |
Total realized gains included in income | 0 | 0 |
Changes in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at March 31 | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value, end of period | 0 | 0 |
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at March 31 | 0 | 0 |
Other assets | ||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | ||
Fair value, beginning of period | 26,422 | 28,874 |
Total realized gains included in income | 448 | 512 |
Changes in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at March 31 | 0 | 0 |
Purchases | 1,670 | 870 |
Issuances | 0 | 0 |
Settlements | (433) | (468) |
Transfers out of Level 3 | 0 | 0 |
Fair value, end of period | 28,107 | 29,788 |
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at March 31 | 448 | 512 |
Available-for-sale Securities | ||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | ||
Fair value, beginning of period | 14,595 | 17,029 |
Total realized gains included in income | 30 | 31 |
Changes in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at March 31 | (496) | (666) |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (399) | (1,168) |
Transfers out of Level 3 | 0 | 0 |
Fair value, end of period | 13,730 | 15,226 |
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at March 31 | $ 30 | $ 31 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | |||
Financial assets: | ||||
Securities held-to-maturity | $ 199,010,000 | $ 193,131,000 | ||
Quoted market prices in an active market (Level 1) | ||||
Financial assets: | ||||
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 | |
Standby letters of credit | [2] | 0 | 0 | |
Models with significant observable market parameters (Level 2) | ||||
Financial assets: | ||||
Securities held-to-maturity | 199,010,000 | 193,131,000 | ||
Loans, net | 0 | 0 | ||
Consumer loans held-for-sale | 54,613,000 | 34,929,000 | ||
Commercial loans held-for-sale | 14,713,000 | 16,296,000 | ||
Financial liabilities: | ||||
Deposits and securities sold under agreements to repurchase | 0 | 0 | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Subordinated debt and other borrowings | 0 | 0 | ||
Off-balance sheet instruments: | ||||
Commitments to extend credit | [1] | 0 | 0 | |
Standby letters of credit | [2] | 0 | 0 | |
Models with significant unobservable market parameters (Level 3) | ||||
Financial assets: | ||||
Securities held-to-maturity | 0 | 0 | ||
Loans, net | 17,916,901,000 | 17,288,795,000 | ||
Consumer loans held-for-sale | 0 | 0 | ||
Commercial loans held-for-sale | 0 | 0 | ||
Financial liabilities: | ||||
Deposits and securities sold under agreements to repurchase | 17,977,271,000 | 18,337,848,000 | ||
Federal Home Loan Bank advances | 2,109,609,000 | 1,432,003,000 | ||
Subordinated debt and other borrowings | 465,615,000 | 464,616,000 | ||
Off-balance sheet instruments: | ||||
Commitments to extend credit | [1] | 1,729,000 | 1,733,000 | |
Standby letters of credit | [2] | 1,135,000 | 1,131,000 | |
Carrying/ Notional Amount | ||||
Financial assets: | ||||
Securities held-to-maturity | 194,043,000 | 194,282,000 | ||
Loans, net | 18,087,712,000 | 17,623,974,000 | ||
Consumer loans held-for-sale | 53,658,000 | 34,196,000 | ||
Commercial loans held-for-sale | 14,456,000 | 15,954,000 | ||
Financial liabilities: | ||||
Deposits and securities sold under agreements to repurchase | 18,581,159,000 | 18,953,848,000 | ||
Federal Home Loan Bank advances | 2,121,075,000 | 1,443,589,000 | ||
Subordinated debt and other borrowings | 484,703,000 | 485,130,000 | ||
Off-balance sheet instruments: | ||||
Commitments to extend credit | [1] | 7,397,175,000 | 6,921,689,000 | |
Standby letters of credit | [2] | 191,279,000 | 177,475,000 | |
Estimated Fair Value | ||||
Financial assets: | ||||
Securities held-to-maturity | [3] | 199,010,000 | 193,131,000 | |
Loans, net | [3] | 17,916,901,000 | 17,288,795,000 | |
Consumer loans held-for-sale | [3] | 54,613,000 | 34,929,000 | |
Commercial loans held-for-sale | [3] | 14,713,000 | 16,296,000 | |
Financial liabilities: | ||||
Deposits and securities sold under agreements to repurchase | [3] | 17,977,271,000 | 18,337,848,000 | |
Federal Home Loan Bank advances | [3] | 2,109,609,000 | 1,432,003,000 | |
Subordinated debt and other borrowings | [3] | 465,615,000 | 464,616,000 | |
Off-balance sheet instruments: | ||||
Commitments to extend credit | [1],[3] | 1,729,000 | 1,733,000 | |
Standby letters of credit | [2],[3] | 1,135,000 | 1,131,000 | |
Nonrecurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Gain (Loss) On Impaired loans, net | (1,113,000) | [4] | (1,214,000) | |
Gain (Loss) on Other real estate owned | $ 50,000 | $ (84,000) | ||
[1] | At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at both March 31, 2019 and December 31, 2018, Pinnacle Financial included in other liabilities $1.7 million representing the inherent risks associated with these off-balance sheet commitments. | |||
[2] | At both March 31, 2019 and December 31, 2018, the aggregate fair value of Pinnacle Financial's standby letters of credit was $1.1 million. These amounts represent the unamortized fee associated with these standby letters of credit and are included in the consolidated balance sheets of Pinnacle Financial and are believed to approximate fair value. These fair values will decrease over time as the existing standby letters of credit approach their expiration dates. | |||
[3] | 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. | |||
[4] | Amount is net of valuation allowance of $5.5 million and $4.0 million at March 31, 2019 and December 31, 2018, respectively, as required by ASC 310-10, "Receivables." |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | ||
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 | $ 914,545,000 | $ 833,130,000 | |
Quarterly common stock dividend (in dollar per share) | $ 0.16 | ||
Pinnacle Financial | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Cash dividends paid to Pinnacle Financial by Pinnacle Bank | $ 39,100,000 | ||
Actual | |||
Total capital to risk weighted assets | 2,635,562,000 | 2,580,143,000 | |
Tier I capital to risk weighted assets | 2,078,454,000 | 2,024,193,000 | |
Common Equity Tier I capital to risk weighted assets | 2,078,331,000 | 2,024,070,000 | |
Tier I capital to average assets | [1] | $ 2,078,454,000 | $ 2,024,193,000 |
Actual | |||
Total capital to risk weighted assets (as percent) | 12.00% | 12.20% | |
Tier I capital to risk weighted assets (as percent) | 9.40% | 9.60% | |
Common Equity Tier I capital to risk weighted assets (as percent) | 9.40% | 9.60% | |
Tier I capital to average assets (as percent) | [1] | 9.00% | 8.90% |
Minimum Capital Requirement | |||
Total capital to risk weighted assets | $ 1,760,157,000 | $ 1,691,017,000 | |
Tier I capital to risk weighted assets | 1,320,118,000 | 1,268,263,000 | |
Common Equity Tier I capital | 990,088,000 | 951,197,000 | |
Tier I capital to average assets | [1] | $ 924,540,000 | $ 909,102,000 |
Minimum Capital Requirement | |||
Total capital to risk weighted assets (as percent) | 8.00% | 8.00% | |
Tier I capital to risk weighted assets (as percent) | 6.00% | 6.00% | |
Common Equity Tier I capital to risk weighted assets (as percent) | 4.50% | 4.50% | |
Tier I capital to average assets (as percent) | [1] | 4.00% | 4.00% |
Pinnacle Bank | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Retained earnings | $ 637,400,000 | ||
Actual | |||
Total capital to risk weighted assets | 2,495,127,000 | $ 2,432,419,000 | |
Tier I capital to risk weighted assets | 2,277,027,000 | 2,218,003,000 | |
Common Equity Tier I capital to risk weighted assets | 2,276,904,000 | 2,217,880,000 | |
Tier I capital to average assets | [1] | $ 2,277,027,000 | $ 2,218,003,000 |
Actual | |||
Total capital to risk weighted assets (as percent) | 11.40% | 11.50% | |
Tier I capital to risk weighted assets (as percent) | 10.40% | 10.50% | |
Common Equity Tier I capital to risk weighted assets (as percent) | 10.40% | 10.50% | |
Tier I capital to average assets (as percent) | [1] | 9.90% | 9.80% |
Minimum Capital Requirement | |||
Total capital to risk weighted assets | $ 1,756,333,000 | $ 1,686,046,000 | |
Tier I capital to risk weighted assets | 1,317,250,000 | 1,264,535,000 | |
Common Equity Tier I capital | 987,937,000 | 948,401,000 | |
Tier I capital to average assets | [1] | $ 922,810,000 | $ 906,185,000 |
Minimum Capital Requirement | |||
Total capital to risk weighted assets (as percent) | 8.00% | 8.00% | |
Tier I capital to risk weighted assets (as percent) | 6.00% | 6.00% | |
Common Equity Tier I capital to risk weighted assets (as percent) | 4.50% | 4.50% | |
Tier I capital to average assets (as percent) | [1] | 4.00% | 4.00% |
Minimum To Be Well-Capitalized | |||
Total capital to risk weighted assets | $ 2,195,416,000 | $ 2,107,558,000 | |
Tier I capital to risk weighted assets | 1,756,333,000 | 1,686,046,000 | |
Common Equity Tier I capital to risk weighted assets | 1,427,020,000 | 1,369,912,000 | |
Tier I capital to average assets | [1] | $ 1,153,512,000 | $ 1,132,731,000 |
Minimum To Be Well-Capitalized | |||
Total capital to risk weighted assets (as percent) | 10.00% | 10.00% | |
Tier I capital to risk weighted assets (as percent) | 8.00% | 8.00% | |
Common Equity Tier I capital to risk weighted assets (as percent) | 6.50% | 6.50% | |
Tier I capital to average assets (as percent) | [1] | 5.00% | 5.00% |
[1] | (*) Average assets for the above calculations were based on the most recent quarter. |
Subordinated Debt and Other b_3
Subordinated Debt and Other borrowings (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($)subsidiary | Dec. 31, 2018USD ($) | ||
Debt Instrument [Line Items] | |||
Number of wholly owned subsidiaries | subsidiary | 12 | ||
Term | 30 years | ||
Total Debt Outstanding | $ 484,703,000 | $ 485,130,000 | |
Debt issuance costs and fair value adjustments | $ (7,652,000) | ||
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Date Established | Apr. 26, 2018 | ||
Maturity | Apr. 25, 2019 | ||
Total Debt Outstanding | [1] | $ 20,000,000 | |
Interest Rate (as percent) | [1] | 4.24% | |
Maximum borrowing capacity | $ 75,000,000 | ||
Pinnacle Statutory Trust I | |||
Debt Instrument [Line Items] | |||
Date Established | Dec. 29, 2003 | ||
Maturity | Dec. 30, 2033 | ||
Total Debt Outstanding | $ 10,310,000 | ||
Interest Rate (as percent) | 5.41% | ||
Debt instrument, basis spread on variable rate (as percent) | 2.80% | ||
Coupon Structure | 30-day LIBOR + 2.80% | ||
Pinnacle Statutory Trust II | |||
Debt Instrument [Line Items] | |||
Date Established | Sep. 15, 2005 | ||
Maturity | Sep. 30, 2035 | ||
Total Debt Outstanding | $ 20,619,000 | ||
Interest Rate (as percent) | 3.99% | ||
Debt instrument, basis spread on variable rate (as percent) | 1.40% | ||
Coupon Structure | 30-day LIBOR + 1.40% | ||
Pinnacle Statutory Trust III | |||
Debt Instrument [Line Items] | |||
Date Established | Sep. 7, 2006 | ||
Maturity | Sep. 30, 2036 | ||
Total Debt Outstanding | $ 20,619,000 | ||
Interest Rate (as percent) | 4.24% | ||
Debt instrument, basis spread on variable rate (as percent) | 1.65% | ||
Coupon Structure | 30-day LIBOR + 1.65% | ||
Pinnacle Statutory Trust IV | |||
Debt Instrument [Line Items] | |||
Date Established | Oct. 31, 2007 | ||
Maturity | Sep. 30, 2037 | ||
Total Debt Outstanding | $ 30,928,000 | ||
Interest Rate (as percent) | 5.46% | ||
Debt instrument, basis spread on variable rate (as percent) | 2.85% | ||
Coupon Structure | 30-day LIBOR + 2.85% | ||
BNC Capital Trust I | |||
Debt Instrument [Line Items] | |||
Date Established | Apr. 3, 2003 | ||
Maturity | Apr. 15, 2033 | ||
Total Debt Outstanding | $ 5,155,000 | ||
Interest Rate (as percent) | 6.04% | ||
Debt instrument, basis spread on variable rate (as percent) | 3.25% | ||
Coupon Structure | 30-day LIBOR + 3.25% | ||
BNC Capital Trust II | |||
Debt Instrument [Line Items] | |||
Date Established | Mar. 11, 2004 | ||
Maturity | Apr. 7, 2034 | ||
Total Debt Outstanding | $ 6,186,000 | ||
Interest Rate (as percent) | 5.64% | ||
Debt instrument, basis spread on variable rate (as percent) | 2.85% | ||
Coupon Structure | 30-day LIBOR + 2.85% | ||
BNC Capital Trust III | |||
Debt Instrument [Line Items] | |||
Date Established | Sep. 23, 2004 | ||
Maturity | Sep. 23, 2034 | ||
Total Debt Outstanding | $ 5,155,000 | ||
Interest Rate (as percent) | 5.19% | ||
Debt instrument, basis spread on variable rate (as percent) | 2.40% | ||
Coupon Structure | 30-day LIBOR + 2.40% | ||
BNC Capital Trust IV | |||
Debt Instrument [Line Items] | |||
Date Established | Sep. 27, 2006 | ||
Maturity | Dec. 31, 2036 | ||
Total Debt Outstanding | $ 7,217,000 | ||
Interest Rate (as percent) | 4.29% | ||
Debt instrument, basis spread on variable rate (as percent) | 1.70% | ||
Coupon Structure | 30-day LIBOR + 1.70% | ||
Valley Financial Trust I | |||
Debt Instrument [Line Items] | |||
Date Established | Jun. 26, 2003 | ||
Maturity | Jun. 26, 2033 | ||
Total Debt Outstanding | $ 4,124,000 | ||
Interest Rate (as percent) | 5.71% | ||
Debt instrument, basis spread on variable rate (as percent) | 3.10% | ||
Coupon Structure | 30-day LIBOR + 3.10% | ||
Valley Financial Trust II | |||
Debt Instrument [Line Items] | |||
Date Established | Sep. 26, 2005 | ||
Maturity | Dec. 15, 2035 | ||
Total Debt Outstanding | $ 7,217,000 | ||
Interest Rate (as percent) | 4.10% | ||
Debt instrument, basis spread on variable rate (as percent) | 1.49% | ||
Coupon Structure | 30-day LIBOR + 1.49% | ||
Valley Financial Trust III | |||
Debt Instrument [Line Items] | |||
Date Established | Dec. 15, 2006 | ||
Maturity | Jan. 30, 2037 | ||
Total Debt Outstanding | $ 5,155,000 | ||
Interest Rate (as percent) | 4.48% | ||
Debt instrument, basis spread on variable rate (as percent) | 1.73% | ||
Coupon Structure | 30-day LIBOR + 1.73% | ||
Southcoast Capital Trust III | |||
Debt Instrument [Line Items] | |||
Date Established | Aug. 5, 2005 | ||
Maturity | Sep. 30, 2035 | ||
Total Debt Outstanding | $ 10,310,000 | ||
Interest Rate (as percent) | 4.09% | ||
Debt instrument, basis spread on variable rate (as percent) | 1.50% | ||
Coupon Structure | 30-day LIBOR + 1.50% | ||
Pinnacle Bank Subordinated Notes (2015) | |||
Debt Instrument [Line Items] | |||
Date Established | Jul. 30, 2015 | ||
Maturity | Jul. 30, 2025 | ||
Total Debt Outstanding | [2] | $ 60,000,000 | |
Interest Rate (as percent) | [2] | 4.88% | |
Debt instrument, basis spread on variable rate (as percent) | 3.128% | ||
Coupon Structure | LIBOR + 3.128% | ||
Debt instrument, term of variable rate | 3 months | ||
Pinnacle Bank Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Date Established | Mar. 10, 2016 | ||
Maturity | Jul. 30, 2025 | ||
Total Debt Outstanding | [2] | $ 70,000,000 | |
Interest Rate (as percent) | [2] | 4.88% | |
Debt instrument, basis spread on variable rate (as percent) | 3.128% | ||
Coupon Structure | LIBOR + 3.128% | ||
Debt instrument, term of variable rate | 3 months | ||
Avenue Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Date Established | Dec. 29, 2014 | ||
Maturity | Dec. 29, 2024 | ||
Total Debt Outstanding | [3] | $ 20,000,000 | |
Interest Rate (as percent) | [3] | 6.75% | |
Debt instrument, basis spread on variable rate (as percent) | 4.95% | ||
Coupon Structure | LIBOR + 4.95% | ||
Debt instrument, term of variable rate | 3 months | ||
Pinnacle Financial Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Date Established | Nov. 16, 2016 | ||
Maturity | Nov. 16, 2026 | ||
Total Debt Outstanding | [4] | $ 120,000,000 | |
Interest Rate (as percent) | [4] | 5.25% | |
Debt instrument, basis spread on variable rate (as percent) | 3.884% | ||
Coupon Structure | LIBOR + 3.884% | ||
Debt instrument, term of variable rate | 3 months | ||
BNC Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Date Established | Sep. 25, 2014 | ||
Maturity | Oct. 1, 2024 | ||
Total Debt Outstanding | [5] | $ 60,000,000 | |
Interest Rate (as percent) | [5] | 5.50% | |
Debt instrument, basis spread on variable rate (as percent) | 3.59% | ||
Coupon Structure | LIBOR + 3.59% | ||
Debt instrument, term of variable rate | 3 months | ||
Townebank Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Date Established | Oct. 15, 2013 | ||
Maturity | Oct. 15, 2023 | ||
Total Debt Outstanding | [6] | $ 9,360,000 | |
Interest Rate (as percent) | [6] | 7.49% | |
Debt instrument, basis spread on variable rate (as percent) | [6] | 5.00% | |
Coupon Structure | [6] | 30-day LIBOR + 5.00% | |
Minimum | BNC Bancorp | Townebank Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate (as percent) | 5.50% | ||
Maximum | BNC Bancorp | Townebank Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate (as percent) | 9.50% | ||
[1] | Borrowing capacity on the revolving credit facility is $75.0 million. At March 31, 2019, there was $20.0 million outstanding under this facility. During the three months ended March 31, 2019, an unused fee of 0.35% was assessed on the average daily unused amount of the loan. | ||
[2] | Migrates to three month LIBOR + 3.128% beginning July 30, 2020 through the end of the term. | ||
[3] | Migrates to three month LIBOR + 4.95% beginning January 1, 2020 through the end of the term. | ||
[4] | Migrates to three month LIBOR + 3.884% beginning November 16, 2021 through the end of the term. | ||
[5] | Migrates to three month LIBOR + 3.59% beginning October 1, 2019 through the end of the term if not redeemed on that date. | ||
[6] | Coupon structure includes a floor of 5.5% and a cap of 9.5% |
Leases Schedule of Leases Asset
Leases Schedule of Leases Assets and Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) | |
Right-of-use assets | ||
Operating leases (1) | $ 73,792 | [1] |
Finance leases | 2,156 | |
Total right-of-use assets | 75,948 | |
Lease liabilities | ||
Operating leases | 81,768 | |
Finance leases | 3,415 | |
Total lease liabilities | 85,183 | |
Tenant improvements allowances | 1,700 | |
Purchase accounting fair value adjustments | $ 2,900 | |
[1] | Presented net of tenant improvement allowances of $1.7 million and purchase accounting fair value adjustments of $2.9 million. |
Leases Lease Costs and Other In
Leases Lease Costs and Other Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 3,440,000 | |
Short-term lease cost | 14,000 | |
Interest on lease liabilities | 62,000 | |
Amortization of right-of-use asset | (56,000) | |
Sublease income | (249,000) | |
Net lease cost | 3,323,000 | |
Rent expense related to leases | $ 3,200,000 | |
Operating cash flows related to operating leases | 3,381,000 | |
Operating cash flows related to finance leases | (62,000) | |
Financing cash flows related to finance leases | $ 55,000 | |
Weighted average remaining lease term, operating lease | 9 years 8 months 27 days | |
Weighted average remaining lease term, finance lease | 9 years 6 months 29 days | |
Weighted average discount rate, operating lease | 3.31% | |
Weighted average discount rate, finance lease | 7.22% |
Leases Schedule of leases both
Leases Schedule of leases both operating and finance (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases | |
2019 | $ 10,122 |
2020 | 12,469 |
2021 | 12,038 |
2022 | 9,688 |
2023 | 8,874 |
Thereafter | 43,967 |
Total | 97,158 |
Less: Imputed interest | (15,390) |
Total lease liabilities | 81,768 |
Finance Leases | |
2019 | 353 |
2020 | 470 |
2021 | 470 |
2022 | 470 |
2023 | 479 |
Thereafter | 2,548 |
Total | 4,790 |
Less: Imputed interest | (1,375) |
Total lease liabilities | $ 3,415 |
Leases Schedule of leases bot_2
Leases Schedule of leases both operating and capital (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases, Operating [Abstract] | |
2019 | $ 12,889 |
2020 | 11,805 |
2021 | 11,527 |
2022 | 9,410 |
2023 | 8,820 |
Thereafter | 43,730 |
Future minimum lease payments | 98,181 |
Leases, Capital [Abstract] | |
2019 | 470 |
2020 | 470 |
2021 | 470 |
2022 | 470 |
2023 | 479 |
Thereafter | 2,548 |
Future minimum lease payments | 4,907 |
Less: Imputed interest | 1,437 |
Total capital lease liabilities | $ 3,470 |