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PNFP Pinnacle Financial Partners

Document and Entity Information

Document and Entity Information - shares6 Months Ended
Jun. 30, 2019Jul. 30, 2019
Cover page.
Document Type10-Q
Document Quarterly Reporttrue
Document Period End DateJun. 30,
2019
Document Transition Reportfalse
Entity File Number000-31225
Entity Registrant NamePinnacle Financial Partners Inc.
Entity Incorporation, State or Country CodeTN
Entity Tax Identification Number62-1812853
Entity Address, Address Line One150 Third Avenue South, Suite 900
Entity Address, City or TownNashville,
Entity Address, State or ProvinceTN
Entity Address, Postal Zip Code37201
City Area Code(615)
Local Phone Number744-3700
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Title of 12(b) SecurityCommon Stock, par value $1.00
Trading SymbolPNFP
Security Exchange NameNASDAQ
Entity Common Stock, Shares Outstanding76,949,554
Entity Central Index Key0001115055
Current Fiscal Year End Date--12-31
Document Fiscal Year Focus2019
Document Fiscal Period FocusQ2
Amendment Flagfalse

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in ThousandsJun. 30, 2019Dec. 31, 2018
Assets [Abstract]
Cash and noninterest-bearing due from banks $ 153,071 $ 137,433
Restricted Cash, Current121,440 65,491
Interest-bearing due from banks332,862 516,920
Federal funds sold and other20,214 1,848
Cash and cash equivalents627,587 721,692
Securities available-for-sale, at fair value3,256,906 3,083,686
Securities held-to-maturity (fair value of $200.6 million and $193.1 million at June 30, 2019 and Dec. 31, 2018, respectively)190,928 194,282
Consumer loans held-for-sale70,004 34,196
Commercial loans held-for-sale21,295 15,954
Loans18,814,318 17,707,549
Less allowance for loan losses(90,253)(83,575)
Loans, net18,724,065 17,623,974
Premises and equipment, net274,729 265,560
Equity method investment243,875 239,237
Accrued interest receivable84,582 79,657
Goodwill1,807,121 1,807,121
Core deposits and other intangible assets41,578 46,161
Other real estate owned26,657 15,165
Other assets1,171,028 904,359
Total assets26,540,355 25,031,044
Deposits:
Noninterest-bearing4,493,419 4,309,067
Interest-bearing3,129,941 3,464,001
Savings and money market accounts7,547,166 7,607,796
Time4,278,857 3,468,243
Total deposits19,449,383 18,849,107
Securities sold under agreements to repurchase154,169 104,741
Federal Home Loan Bank advances1,960,062 1,443,589
Subordinated debt and other borrowings464,144 485,130
Accrued interest payable30,376 23,586
Other liabilities305,860 158,951
Total liabilities22,363,994 21,065,104
Stockholders' equity:
Preferred stock, no par value; 10.0 million shares authorized; no shares issued and outstanding0 0
Common stock, par value $1.00; 180.0 million shares authorized at June 30, 2019 and Dec. 31, 2018; 76.9 million and 77.5 million shares issued and outstanding at June 30, 2019 and Dec. 31, 2018, respectively76,929 77,484
Additional paid-in capital3,076,486 3,107,431
Retained earnings1,002,434 833,130
Accumulated other comprehensive income (loss), net of taxes20,512 (52,105)
Total stockholders' equity4,176,361 3,965,940
Total liabilities and stockholders' equity $ 26,540,355 $ 25,031,044

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in ThousandsJun. 30, 2019Dec. 31, 2018
Statement of Financial Position [Abstract]
Securities held-to-maturity, fair value $ 200,566 $ 193,131
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)76,929,000 77,484,000
Common stock, shares outstanding (in shares)76,929,000 77,484,000

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Interest income:
Loans, including fees $ 237,653 $ 208,758 $ 467,032 $ 399,972
Securities:
Taxable12,243 11,748 25,783 22,970
Tax-exempt12,556 8,350 24,228 15,635
Federal funds sold and other3,399 2,128 6,691 3,935
Total interest income265,851 230,984 523,734 442,512
Interest expense:
Deposits58,988 32,767 113,205 56,748
Securities sold under agreements to repurchase142 143 287 273
Federal Home Loan Bank advances and other borrowings17,803 15,838 34,078 28,784
Total interest expense76,933 48,748 147,570 85,805
Net interest income188,918 182,236 376,164 356,707
Provision for loan losses7,195 9,402 14,379 16,333
Net interest income after provision for loan losses181,723 172,834 361,785 340,374
Noninterest income:
Total noninterest income70,682 47,939 121,745 92,122
Noninterest expense:
Salaries and employee benefits75,620 64,112 145,996 127,831
Equipment and occupancy23,844 18,208 43,175 35,951
Other real estate expense, net2,523 819 2,769 25
Marketing and other business development3,282 2,544 6,230 4,791
Postage and supplies2,079 2,291 3,971 4,330
Amortization of intangibles2,271 2,659 4,582 5,357
Merger-related expense0 2,906 0 8,259
Other noninterest expense18,067 17,369 35,014 32,944
Total noninterest expense127,686 110,908 241,737 219,488
Income before income taxes124,719 109,865 241,793 213,008
Income tax expense24,398 23,000 47,512 42,633
Net income $ 100,321 $ 86,865 $ 194,281 $ 170,375
Per share information:
Basic net income per common share (in dollars per share) $ 1.31 $ 1.13 $ 2.54 $ 2.21
Diluted net income per common share (in dollars per share) $ 1.31 $ 1.12 $ 2.53 $ 2.20
Weighted average shares outstanding:
Basic (in shares)76,343,608 77,123,854 76,572,120 77,101,816
Diluted (in shares)76,611,657 77,468,082 76,866,163 77,417,930
Service charges on deposit accounts
Noninterest income:
Total noninterest income $ 8,940 $ 8,456 $ 17,482 $ 16,361
Investment services
Noninterest income:
Total noninterest income5,803 5,074 11,207 10,319
Insurance sales commissions
Noninterest income:
Total noninterest income2,147 2,048 5,075 5,167
Gain on mortgage loans sold, net
Noninterest income:
Total noninterest income6,011 3,777 10,889 7,521
Gain on sale of investment securities, net
Noninterest income:
Total noninterest income(4,466)0 (6,426)30
Trust fees
Noninterest income:
Total noninterest income3,461 3,564 6,756 6,681
Income from equity method investment
Noninterest income:
Total noninterest income32,261 9,690 45,551 19,050
Other noninterest income
Noninterest income:
Total noninterest income $ 16,525 $ 15,330 $ 31,211 $ 26,993

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Net income $ 100,321 $ 86,865 $ 194,281 $ 170,375
Other comprehensive income (loss), net of tax:
Change in fair value on available-for-sale securities, net of tax25,514 (2,785)61,894 (36,268)
Change in fair value of cash flow hedges, net of tax6,613 950 6,090 2,670
Amortization of net unrealized losses (gains) on securities transferred from available-for-sale to held-to-maturity, net of tax41 (35)70 (93)
Gain on cash flow hedges reclassified from other comprehensive income into net income, net of tax73 (143)(183)(284)
Net loss (gain) on sale of investment securities reclassified from other comprehensive income into net income, net of tax3,299 0 4,746 (22)
Total other comprehensive income (loss), net of tax35,540 (2,013)72,617 (33,997)
Total comprehensive income $ 135,861 $ 84,852 $ 266,898 $ 136,378

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in ThousandsTotalCommon StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comp. Income (Loss), net
Balance at Dec. 31, 2017 $ 3,707,952 $ 77,740 $ 3,115,304 $ 519,144 $ (4,236)
Balance (in shares) at Dec. 31, 201777,740,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of employee common stock options and related tax benefits1,616 $ 87 1,529
Exercise of employee common stock options and related tax benefits (in shares)87,000
Common dividends paid(10,974)(10,974)
Issuance of restricted common shares, net of forfeitures0 $ 106 (106)
Issuance of restricted common shares, net of forfeitures (in shares)106,000
Restricted shares withheld for taxes and related tax benefit(5,265) $ (80)(5,185)
Stock-based compensation expense4,448 4,448
Restricted shares withheld for taxes (in shares)(80,000)
Net income83,510 83,510
Other comprehensive income (loss)(31,984)(31,984)
Balance at Mar. 31, 20183,749,303 $ 77,853 3,115,990 591,680 (36,220)
Balance (in shares) at Mar. 31, 201877,853,000
Balance at Dec. 31, 20173,707,952 $ 77,740 3,115,304 519,144 (4,236)
Balance (in shares) at Dec. 31, 201777,740,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense8,751
Net income170,375
Other comprehensive income (loss)(33,997)
Balance at Jun. 30, 20183,826,677 $ 77,855 3,119,461 667,594 (38,233)
Balance (in shares) at Jun. 30, 201877,855,000
Balance at Mar. 31, 20183,749,303 $ 77,853 3,115,990 591,680 (36,220)
Balance (in shares) at Mar. 31, 201877,853,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of employee common stock options and related tax benefits82 $ 3 79
Exercise of employee common stock options and related tax benefits (in shares)3,000
Common dividends paid(10,951)(10,951)
Issuance of restricted common shares, net of forfeitures0 $ 13 (13)
Issuance of restricted common shares, net of forfeitures (in shares)13,000
Restricted shares withheld for taxes and related tax benefit(912) $ (14)(898)
Stock-based compensation expense4,303 4,303
Restricted shares withheld for taxes (in shares)(14,000)
Net income86,865 86,865
Other comprehensive income (loss)(2,013)(2,013)
Balance at Jun. 30, 20183,826,677 $ 77,855 3,119,461 667,594 (38,233)
Balance (in shares) at Jun. 30, 201877,855,000
Balance at Dec. 31, 20183,965,940 $ 77,484 3,107,431 833,130 (52,105)
Balance (in shares) at Dec. 31, 201877,484,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of employee common stock options and related tax benefits130 $ 5 125
Exercise of employee common stock options and related tax benefits (in shares)5,000
Common dividends paid(12,545)(12,545)
Repurchase of common stock (in shares)(543,000)
Repurchase of common stock(30,049) $ (543)(29,506)
Issuance of restricted common shares, net of forfeitures0 $ 180 (180)
Issuance of restricted common shares, net of forfeitures (in shares)180,000
Restricted shares withheld for taxes and related tax benefit(3,487) $ (62)(3,425)
Stock-based compensation expense4,913 4,913
Restricted shares withheld for taxes (in shares)(62,000)
Net income93,960 93,960
Other comprehensive income (loss)37,077 37,077
Balance at Mar. 31, 20194,055,939 $ 77,064 3,079,358 914,545 (15,028)
Balance (in shares) at Mar. 31, 201977,064,000
Balance at Dec. 31, 20183,965,940 $ 77,484 3,107,431 833,130 (52,105)
Balance (in shares) at Dec. 31, 201877,484,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense10,073
Net income194,281
Other comprehensive income (loss)72,617
Balance at Jun. 30, 20194,176,361 $ 76,929 3,076,486 1,002,434 20,512
Balance (in shares) at Jun. 30, 201976,929,000
Balance at Mar. 31, 20194,055,939 $ 77,064 3,079,358 914,545 (15,028)
Balance (in shares) at Mar. 31, 201977,064,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of employee common stock options and related tax benefits9 $ 1 8
Exercise of employee common stock options and related tax benefits (in shares)1,000
Common dividends paid(12,432)(12,432)
Repurchase of common stock (in shares)(132,000)
Repurchase of common stock(7,375) $ (132)(7,243)
Issuance of restricted common shares, net of forfeitures0 $ 10 (10)
Issuance of restricted common shares, net of forfeitures (in shares)10,000
Restricted shares withheld for taxes and related tax benefit(801) $ (14)(787)
Stock-based compensation expense5,160 5,160
Restricted shares withheld for taxes (in shares)(14,000)
Net income100,321 100,321
Other comprehensive income (loss)35,540 35,540
Balance at Jun. 30, 2019 $ 4,176,361 $ 76,929 $ 3,076,486 $ 1,002,434 $ 20,512
Balance (in shares) at Jun. 30, 201976,929,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands6 Months Ended
Jun. 30, 2019Jun. 30, 2018
Operating activities:
Net income $ 194,281 $ 170,375
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization/accretion of premium/discount on securities9,029 9,956
Depreciation, amortization and accretion2,276 (13,095)
Provision for loan losses14,379 16,333
Gain on mortgage loans sold, net(10,889)(7,521)
Investment losses (gains) on sales, net(6,426)30
Stock-based compensation expense10,073 8,751
Deferred tax expense6,907 12,460
Losses (gains) on dispositions of other real estate and other investments2,438 (15)
Income from equity method investment(45,551)(19,050)
Dividends received from equity method investment40,914 23,433
Excess tax benefit from stock compensation(701)(2,754)
Gain on commercial loans sold, net(1,809)(1,538)
Commercial loans held for sale:
Loans originated(209,747)(161,395)
Loans sold206,214 167,113
Consumer loans held for sale:
Loans originated(617,164)(648,596)
Loans sold592,244 651,254
Increase in other assets(50,505)(1,002)
Increase in other liabilities35,230 5,860
Net cash provided by operating activities184,045 210,539
Activities in securities available-for-sale:
Purchases(670,956)(668,671)
Sales476,702 14,454
Maturities, prepayments and calls149,344 149,868
Activities in securities held-to-maturity:
Purchases3,822 0
Maturities, prepayments and calls6,745 5,280
Increase in loans, net(1,110,214)(1,391,216)
Purchases of software, premises and equipment(28,686)(14,484)
Proceeds from sales of software, premises and equipment52 166
Proceeds from sale of other real estate3,117 9,566
Purchase of bank owned life insurance policies(110,000)(50,000)
Proceeds from bank owned life insurance settlements217 0
Payments related to derivative instruments(37,982)0
Increase in other investments(31,352)(34,027)
Net cash used in investing activities(1,356,835)(1,979,064)
Financing activities:
Net increase in deposits600,598 1,407,105
Net increase (decrease) in securities sold under agreements to repurchase49,428 (6,523)
Advances from Federal Home Loan Bank:
Issuances2,222,500 1,312,000
Payments/maturities(1,706,028)(1,050,028)
Decrease in other borrowings, net(21,152)(220)
Principal payments of finance lease obligation(111)(78)
Exercise of common stock options, net of repurchase of restricted shares(4,149)(4,479)
Payments for Repurchase of Common Stock(37,424)0
Common stock dividends paid(24,977)(21,925)
Net cash provided by financing activities1,078,685 1,635,852
Net decrease in cash, cash equivalents, and restricted cash(94,105)(132,673)
Cash, cash equivalents, and restricted cash, beginning of period721,692 779,596
Cash, cash equivalents, and restricted cash, end of period $ 627,587 $ 646,923

Summary of Significant Accounti

Summary of Significant Accounting Policies6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting PoliciesNote 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 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 and determination of any impairment of intangible 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 six months ended June 30, 2019 and June 30, 2018 was as follows (in thousands): For the six months ended 2019 2018 Cash Transactions: Interest paid $ 141,208 $ 82,321 Income taxes paid, net 41,928 28,105 Noncash Transactions: Loans charged-off to the allowance for loan losses 14,548 15,367 Loans foreclosed upon and transferred to other real estate owned 11,760 1,505 Loans foreclosed upon and transferred to other assets 93 950 Fixed assets transferred to other real estate owned 5,126 — Right-of-use asset recognized during the period in exchange for lease obligations (1) 82,856 — (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 and six months ended June 30, 2019 and 2018 (in thousands, except per share data): Three months ended Six months ended 2019 2018 2019 2018 Basic net income per share calculation: Numerator - Net income $ 100,321 $ 86,865 $ 194,281 $ 170,375 Denominator - Weighted average common shares outstanding 76,344 77,124 76,572 77,102 Basic net income per common share $ 1.31 $ 1.13 $ 2.54 $ 2.21 Diluted net income per share calculation: Numerator – Net income $ 100,321 $ 86,865 $ 194,281 $ 170,375 Denominator - Weighted average common shares outstanding 76,344 77,124 76,572 77,102 Dilutive shares contingently issuable 268 344 294 316 Weighted average diluted common shares outstanding 76,612 77,468 76,866 77,418 Diluted net income per common share $ 1.31 $ 1.12 $ 2.53 $ 2.20 Recently Adopted Accounting Pronouncements — 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 guidance. The guidance requires that a lessee should recognize lease assets and lease liabilities as compared to previous GAAP guidance 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. 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 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 June 30, 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 has concluded that an increase in the overall allowance for loan losses is likely upon adoption of CECL 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 June 30, 2019 through the date of the issued financial statements. On July 2, 2019, Pinnacle Bank acquired all of the outstanding stock of Advocate Capital, Inc. for a cash price of $59 million . Advocate Capital is a finance firm headquartered in Nashville, TN which supports the financial needs of legal firms through both case expense financing and working capital lines of credit.

Equity method investment

Equity method investment6 Months Ended
Jun. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Equity method investmentNote 2. Equity method investment A summary of BHG's financial position as of June 30, 2019 and December 31, 2018 and results of operations as of and for the three and six months ended June 30, 2019 and 2018 , were as follows (in thousands): As of June 30, 2019 December 31, 2018 Assets $ 606,548 $ 459,816 Liabilities 451,095 324,211 Equity interests 155,453 135,605 Total liabilities and equity $ 606,548 $ 459,816 For the three months ended For the six months ended 2019 2018 2019 2018 Revenues $ 107,982 $ 49,053 $ 170,799 $ 92,804 Net income $ 67,564 $ 19,102 $ 94,699 $ 38,106 At June 30, 2019 , technology, trade name and customer relationship intangibles, net of related amortization, totaled $9.7 million compared to $10.7 million as of December 31, 2018 . Amortization expense of $475,000 and $950,000 , respectively, was included for the three and six months ended June 30, 2019 compared to $693,000 and $1.4 million, respectively, for the same periods in the prior year. Accretion income of $660,000 and $1.3 million, respectively was included in the three and six months ended June 30, 2019 compared to $729,000 and $1.5 million, respectively, for the same periods in the prior year. During the three and six months ended June 30, 2019 , Pinnacle Financial and Pinnacle Bank received dividends from BHG of $28.2 million and $40.9 million, respectively, in the aggregate compared to $19.1 million and $23.4 million, respectively, for the same periods in the prior year. Earnings from BHG are included in Pinnacle Financial's consolidated tax return. Profits from intercompany transactions are eliminated. No loans were purchased from BHG by Pinnacle Bank for the three and six month periods ended June 30, 2019 or 2018, respectively.

Securities

Securities6 Months Ended
Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract]
SecuritiesNote 3. Securities The amortized cost and fair value of securities available-for-sale and held-to-maturity at June 30, 2019 and December 31, 2018 are summarized as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2019: Securities available-for-sale: U.S. Treasury securities $ 48,883 $ 34 $ — $ 48,917 U.S. government agency securities 55,907 111 995 55,023 Mortgage-backed securities 1,289,189 9,155 6,431 1,291,913 State and municipal securities 1,572,847 64,161 506 1,636,502 Asset-backed securities 169,457 942 976 169,423 Corporate notes and other 56,179 462 1,513 55,128 $ 3,192,462 $ 74,865 $ 10,421 $ 3,256,906 Securities held-to-maturity: State and municipal securities $ 190,928 $ 9,639 $ 1 $ 200,566 $ 190,928 $ 9,639 $ 1 $ 200,566 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 At June 30, 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 June 30, 2019 , repurchase agreements comprised of secured borrowings totaled $154.2 million and were secured by $154.2 million of pledged U.S. government agency securities, municipal securities, asset backed securities, and corporate debentures. As the fair value of securities pledged to secure repurchase agreements may decline, Pinnacle Financial regularly evaluates its need to pledge additional securities to remain adequately secured. The amortized cost and fair value of debt securities as of June 30, 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 June 30, 2019: Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 64,432 $ 64,479 $ 1,401 $ 1,401 Due in one year to five years 18,158 18,203 1,020 1,022 Due in five years to ten years 85,576 85,416 5,779 5,866 Due after ten years 1,565,650 1,627,472 182,728 192,277 Mortgage-backed securities 1,289,189 1,291,913 — — Asset-backed securities 169,457 169,423 — — $ 3,192,462 $ 3,256,906 $ 190,928 $ 200,566 At June 30, 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 June 30, 2019 U.S. Treasury securities $ — $ — $ 250 $ — $ 250 $ — U.S. government agency securities 2,064 9 35,391 986 37,455 995 Mortgage-backed securities 84,937 535 471,224 5,896 556,161 6,431 State and municipal securities 76,291 489 11,663 53 87,954 542 Asset-backed securities 104,510 775 22,373 201 126,883 976 Corporate notes 17,337 508 10,502 1,005 27,839 1,513 Total temporarily-impaired securities $ 285,139 $ 2,316 $ 551,403 $ 8,141 $ 836,542 $ 10,457 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 June 30, 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 June 30, 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 June 30, 2019 , Pinnacle Financial had approximately $10.5 million in unrealized losses on $836.5 million 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 described below 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 June 30, 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 June 30, 2019 . 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. Periodically, available-for-sale securities may be sold or the composition of the portfolio realigned to improve yields, quality or marketability, or to implement changes in investment or asset/liability strategy, including maintaining collateral requirements and raising funds for liquidity purposes or preparing for anticipated changes in market interest rates. Additionally, if an available-for-sale security loses its investment grade or tax-exempt status, the underlying credit support is terminated or collection otherwise becomes uncertain based on factors known to management, Pinnacle Financial will consider selling the security, but will review each security on a case-by-case basis as these factors become known. Consistent with the investment policy, during the three and six months ended June 30, 2019 available-for-sale securities of approximately $350.1 million and $476.7 million, respectively, were sold and net unrealized losses, net of tax, of $3.3 million and $4.7 million, respectively, were reclassified from accumulated other comprehensive income into net income.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses6 Months Ended
Jun. 30, 2019
Receivables [Abstract]
Loans and Allowance for Loan LossesNote 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 June 30, 2019 , approximately 80.5% 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 June 30, 2019 and December 31, 2018 (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer Total June 30, 2019 Pass $ 7,380,522 $ 2,900,661 $ 2,102,602 $ 5,597,038 $ 364,773 $ 18,345,596 Special Mention 96,283 7,816 7,015 47,930 1,145 160,189 Substandard (1) 84,797 11,381 5,957 130,256 65 232,456 Substandard-nonaccrual 23,790 29,896 2,395 19,883 111 76,075 Doubtful-nonaccrual 1 1 — — — 2 Total loans $ 7,585,393 $ 2,949,755 $ 2,117,969 $ 5,795,107 $ 366,094 $ 18,814,318 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 $227.5 million at June 30, 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 June 30, 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 (8,878 ) 197 3,157 (5,524 ) June 30, 2019 $ 33,959 $ 83 $ (14,237 ) $ 19,805 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 June 30, 2019 and December 31, 2018 by loan classification (in thousands): At June 30, 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 $ 12,639 $ 12,640 $ 778 $ 14,114 $ 14,124 $ 724 Consumer real estate – mortgage 19,770 19,879 2,148 19,864 19,991 1,443 Construction and land development 626 621 43 581 579 28 Commercial and industrial 10,634 10,601 2,560 9,252 9,215 1,441 Consumer and other 111 134 — 983 1,005 328 Total $ 43,780 $ 43,875 $ 5,529 $ 44,794 $ 44,914 $ 3,964 Impaired loans without an allowance: Commercial real estate – mortgage $ 10,332 $ 10,341 $ — $ 14,724 $ 14,739 $ — Consumer real estate – mortgage 10,885 10,909 — 7,247 7,271 — Construction and land development — — — 1,786 1,786 — Commercial and industrial 11,318 11,317 — 14,595 14,627 — Consumer and other — — — — — — Total $ 32,535 $ 32,567 $ — $ 38,352 $ 38,423 $ — Total impaired loans $ 76,315 $ 76,442 $ 5,529 $ 83,146 $ 83,337 $ 3,964 For the three and six months ended June 30, 2019 , the average balance of impaired loans, was $86.2 million and $85.2 million, respectively, compared to $75.1 million and $69.8 million, respectively, for the same periods 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 $89,000 and $176,000 , respectively, in interest income from cash payments received on nonaccrual loans during the three and six months ended June 30, 2019 compared to $153,000 and $253,000 , respectively, during the three and six months ended June 30, 2018 . Had these nonaccruing loans been on accruing status, interest income would have been higher by $1.4 million and $2.6 million, respectively, for the three and six months ended June 30, 2019 compared to $1.2 million and $2.2 million, respectively, higher for the three and six months ended June 30, 2018 . The following table details the average recorded investment and the amount of interest income recognized on a cash basis for the three and six months ended June 30, 2019 and 2018 , respectively, of impaired loans by loan classification (in thousands): For the three months ended For the six months ended 2019 2018 2019 2018 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized Impaired loans with an allowance: Commercial real estate – mortgage $ 15,589 $ — $ 12,527 $ — $ 15,097 $ — $ 8,968 $ — Consumer real estate – mortgage 22,219 — 11,066 — 21,434 — 10,053 — Construction and land development 747 — 1,059 — 692 — 1,547 — Commercial and industrial 9,718 — 7,976 — 9,563 — 9,491 — Consumer and other 221 — 822 — 475 — 548 — Total $ 48,494 $ — $ 33,450 $ — $ 47,261 $ — $ 30,607 $ — Impaired loans without an allowance: Commercial real estate – mortgage $ 13,503 $ 89 $ 18,493 $ 153 $ 13,910 $ 176 $ 17,783 $ 253 Consumer real estate – mortgage 10,658 — 4,805 — 9,521 — 4,585 — Construction and land development — — — — 595 — 882 — Commercial and industrial 13,505 — 18,401 — 13,868 — 15,902 — Consumer and other — — — — — — — — Total $ 37,666 $ 89 $ 41,699 $ 153 $ 37,894 $ 176 $ 39,152 $ 253 Total impaired loans $ 86,160 $ 89 $ 75,149 $ 153 $ 85,155 $ 176 $ 69,759 $ 253 At June 30, 2019 and December 31, 2018 , there were $7.4 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. The following table outlines the amount of each loan category where troubled debt restructurings were made during the three and six months ended June 30, 2019 and 2018 (dollars in thousands): Three Months Ended Six Months Ended 2019 Number Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment, net of related allowance Number Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment, net of related allowance Commercial real estate – mortgage — $ — $ — — $ — $ — Consumer real estate – mortgage 1 712 626 1 712 626 Construction and land development 1 21 19 1 21 19 Commercial and industrial 1 1,397 796 1 1,397 796 Consumer and other — — — — — — 3 $ 2,130 $ 1,441 3 $ 2,130 $ 1,441 2018 Commercial real estate – mortgage — $ — $ — — $ — $ — Consumer real estate – mortgage 1 38 38 1 38 38 Construction and land development — — — — — — Commercial and industrial — — — — — — Consumer and other — — — — — — 1 $ 38 $ 38 1 $ 38 $ 38 During the six months ended June 30, 2019 and 2018 , there were no troubled debt restructurings that subsequently defaulted within twelve months of the restructuring. At June 30, 2019 , the allowance for loan losses included a $900,000 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 that date. At December 31, 2018, the allowance for loan losses included no allowance specifically related to accruing troubled debt restructurings. 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 June 30, 2019 with the comparative exposures for December 31, 2018 (in thousands): June 30, 2019 Outstanding Principal Balances Unfunded Commitments Total exposure Total Exposure at December 31, 2018 Lessors of nonresidential buildings $ 3,375,085 $ 871,369 $ 4,246,454 $ 3,932,059 Lessors of residential buildings 1,003,666 398,766 1,402,432 1,484,697 New Housing For-Sale Builders 508,964 575,435 1,084,399 1,100,989 Hotels (except Casino Hotels) and Motels 847,103 154,986 1,002,089 920,001 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 June 30, 2019 and December 31, 2018 , Pinnacle Bank’s construction and land development loans as a percentage of total risk-based capital were 82.6% 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 288.9% and 277.7% as of June 30, 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 June 30, 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 June 30, 2019 and December 31, 2018 , allocated between accruing and nonaccrual status (in thousands): Accruing Nonaccruing June 30, 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 (1) Total loans Commercial real estate: Owner-occupied $ 2,373 $ 70 $ 2,443 $ 2,606,321 $ 2,450 $ 11,976 $ 970 $ 2,624,160 All other 4,731 — 4,731 4,940,587 5,070 10,828 17 4,961,233 Consumer real estate – mortgage 10,603 220 10,823 2,905,629 3,406 25,501 4,396 2,949,755 Construction and land development 3,469 — 3,469 2,110,684 1,421 605 1,790 2,117,969 Commercial and industrial 11,420 1,537 12,957 5,761,982 285 19,883 — 5,795,107 Consumer and other 4,658 906 5,564 360,419 — 111 — 366,094 Total $ 37,254 $ 2,733 $ 39,987 $ 18,685,622 $ 12,632 $ 68,904 $ 7,173 $ 18,814,318 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 (1) 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 $34.8 million and $52.5 million of nonaccrual loans as of June 30, 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 and six months ended June 30, 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 June 30, 2019: Balance at March 31, 2019 $ 30,167 $ 8,369 $ 10,915 $ 32,699 $ 4,803 $ 241 $ 87,194 Charged-off loans (1,065 ) (580 ) (4 ) (5,408 ) (1,423 ) — (8,480 ) Recovery of previously charged-off loans 892 372 19 2,744 317 — 4,344 Provision for loan losses 832 328 276 7,401 (1,583 ) (59 ) 7,195 Balance at June 30, 2019 $ 30,826 $ 8,489 $ 11,206 $ 37,436 $ 2,114 $ 182 $ 90,253 Three months ended June 30, 2018: Balance at March 31, 2018 $ 22,688 $ 5,100 $ 10,116 $ 26,648 $ 5,476 $ 176 $ 70,204 Charged-off loans (234 ) (935 ) (10 ) (1,724 ) (3,795 ) — (6,698 ) Recovery of previously charged-off loans 58 537 1,010 567 590 — 2,762 Provision for loan losses 2,336 1,151 (132 ) 2,847 2,901 299 9,402 Balance at June 30, 2018 $ 24,848 $ 5,853 $ 10,984 $ 28,338 $ 5,172 $ 475 $ 75,670 Six months ended June 30, 2019: Balance at December 31, 2018 $ 26,946 $ 7,670 $ 11,128 $ 31,731 $ 5,423 $ 677 $ 83,575 Charged-off loans (1,599 ) (930 ) (4 ) (8,760 ) (3,255 ) — (14,548 ) Recovery of previously charged-off loans 964 741 141 4,342 659 — 6,847 Provision for loan losses 4,515 1,008 (59 ) 10,123 (713 ) (495 ) 14,379 Balance at June 30, 2019 $ 30,826 $ 8,489 $ 11,206 $ 37,436 $ 2,114 $ 182 $ 90,253 Six months ended June 30, 2018: Balance at December 31, 2017 $ 21,188 $ 5,031 $ 8,962 $ 24,863 $ 5,874 $ 1,322 $ 67,240 Charged-off loans (962 ) (1,271 ) (12 ) (4,264 ) (8,858 ) — (15,367 ) Recovery of previously charged-off loans 1,454 1,203 1,575 1,455 1,777 — 7,464 Provision for loan losses 3,168 890 459 6,284 6,379 (847 ) 16,333 Balance at June 30, 2018 $ 24,848 $ 5,853 $ 10,984 $ 28,338 $ 5,172 $ 475 $ 75,670 The following table details the allowance for loan losses and recorded investment in loans by loan classification and by impairment evaluation method as of June 30, 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 June 30, 2019 Allowance for Loan Losses: Collectively evaluated for impairment $ 30,048 $ 6,341 $ 11,163 $ 34,876 $ 2,114 $ 84,542 Individually evaluated for impairment 778 2,148 43 2,560 — 5,529 Loans acquired with deteriorated credit quality (1) — — — — — — Total allowance for loan losses $ 30,826 $ 8,489 $ 11,206 $ 37,436 $ 2,114 $ 182 $ 90,253 Loans: Collectively evaluated for impairment $ 7,553,915 $ 2,911,298 $ 2,114,132 $ 5,772,870 $ 365,983 $ 18,718,198 Individually evaluated for impairment 22,971 30,655 626 21,952 111 76,315 Loans acquired with deteriorated credit quality 8,507 7,802 3,211 285 — 19,805 Total loans $ 7,585,393 $ 2,949,755 $ 2,117,969 $ 5,795,107 $ 366,094 $ 18,814,318 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 June 30, 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 $19.6 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 June 30, 2019 or December 31, 2018 . At June 30, 2019 , Pinnacle Financial had approximately $21.3 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 June 30, 2019 , Pinnacle Financial had approximately $55.7 million of mortgage loans held-for-sale compared to approximately $31.8 million at December 31, 2018 . Total loan volumes sold during the six months ended June 30, 2019 were approximately $485.6 million compared to approximately $636.7 million for the six months ended June 30, 2018 . During the three and six months ended June 30, 2019 , Pinnacle Financial recognized $6 .0 million and $10.9 million, respectively, in gains on the sale of these loans, net of commissions paid, compared to $3.8 million and $7.5 million, respectively, net of commissions paid, during the three and six months ended June 30, 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 Taxes6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income TaxesNote 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 June 30, 2019 and December 31, 2018 , respectively. No change was recorded to the unrecognized tax benefit related to uncertain tax positions in each of the three and six month periods ended June 30, 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 and six months ended June 30, 2019 and 2018 , respectively, there were no interest and penalties recorded in the income statement. Pinnacle Financial's effective tax rate for the three and six months ended June 30, 2019 was 19.6% compared to 20.9% and 20.0% for the three and six months ended June 30, 2018 , respectively. The difference between the effective tax rate and the federal and state income tax statutory rate of 26.14% at June 30, 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 and six months ended June 30, 2019 were excess tax expense of $68,000 and benefits of $701,000 , respectively, recognized upon the lapse of restrictions on stock awards and stock options exercises, compared to benefits of $72,000 and $2.8 million, respectively, for the three and six months ended June 30, 2018 .

Commitments and Contingent Liab

Commitments and Contingent Liabilities6 Months Ended
Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingent LiabilitiesNote 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 June 30, 2019 , these commitments amounted to $7.6 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 June 30, 2019 , these commitments amounted to $198.9 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 June 30, 2019 and December 31, 2018 , Pinnacle Financial had accrued $2.4 million and $2.9 million, respectively, for the inherent risks associated with these off-balance sheet commitments. Various legal claims also arise from time to time in the normal course of business. In the opinion of management, the resolution of these claims outstanding at June 30, 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 Shares6 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Stock Options and Restricted SharesNote 7. Stock Options and Restricted Shares The 2018 Omnibus Equity Incentive Plan (the "2018 Plan") permits Pinnacle Financial to reissue outstanding awards that are subsequently forfeited, settled in cash, withheld by Pinnacle Financial to cover withholding taxes or expire unexercised and returned to the 2018 Plan. At June 30, 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 June 30, 2019 , the BNC Plan had approximately 8,000 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 June 30, 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 six months ended June 30, 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 (5,600 ) Forfeited — Outstanding at June 30, 2019 171,109 $ 22.70 2.81 $ 5,951 (2) Options exercisable at June 30, 2019 171,109 $ 22.70 2.81 $ 5,951 (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 $57.48 per common share at June 30, 2019 for the 171,109 options that were in-the-money at June 30, 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 six months ended June 30, 2019 is as follows: Number Grant Date Weighted-Average Cost Unvested at December 31, 2018 692,806 $ 55.19 Shares awarded 209,220 Restrictions lapsed and shares released to associates/directors (261,061 ) Shares forfeited (1) (19,211 ) Unvested at June 30, 2019 621,754 $ 56.99 (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 six months ended June 30, 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 - 5 192,671 224 5,124 187,323 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 was terminated during the year-to-date period ended June 30, 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 June 30, 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 its loans plus ORE is less than amounts established in the applicable award agreement. Stock compensation expense related to both restricted share awards and restricted share units for the three and six months ended June 30, 2019 was $5.2 million and $10.1 million, respectively, compared to $4.3 million and $8.8 million, respectively, for the three and six months ended June 30, 2018 . As of the June 30, 2019 , the total compensation cost related to unvested restricted share awards and restricted share units not yet recognized was $ 44.7 million. This expense is expected to be recognized over a weighted-average period of 1.64 years.

Derivative Instruments

Derivative Instruments6 Months Ended
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative InstrumentsNote 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 June 30, 2019 and December 31, 2018 is included in the following table (in thousands): June 30, 2019 December 31, 2018 Balance Sheet Location Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Interest rate swap agreements: Assets Other assets $ 1,132,854 $ 41,659 $ 1,059,724 $ 22,273 Liabilities Other liabilities 1,132,854 (41,889 ) 1,059,724 (22,401 ) Total $ 2,265,708 $ (230 ) $ 2,119,448 $ (128 ) The effects of Pinnacle Financial's interest rate swaps to facilitate customers' transactions on the income statement during the three and six months ended June 30, 2019 and 2018 were as follows net of tax (in thousands): Amount of Gain (Loss) Recognized in Income Location of Loss Recognized in Income Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest rate swap agreements Other noninterest income $ (89 ) $ (14 ) $ (102 ) $ (34 ) 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 hedges in an effort to manage future interest rate exposure on borrowings. 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. During the second quarter of 2019, Pinnacle Financial purchased an interest rate floor to mitigate the impact of declining interest rates on LIBOR-based variable rate loans. A summary of Pinnacle Financial's cash flow hedge relationships as of June 30, 2019 and December 31, 2018 are as follows (in thousands): June 30, 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 Asset derivatives Interest rate floor Other assets 2.34 —% 2.75% minus 1 month LIBOR $ 1,300,000 $ 34,428 $ — $ — Liability derivatives Interest rate swaps Other liabilities 2.85 3.09% 3 month LIBOR $ 99,000 $ (3,793 ) $ 99,000 $ (1,757 ) The effects of Pinnacle Financial's cash flow hedge relationships on the statement of comprehensive income (loss) during the three and six months ended June 30, 2019 and 2018 were as follows (in thousands): Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended June 30, Six Months Ended June 30, Asset derivatives 2019 2018 2019 2018 Interest rate floor - loans $ 7,924 $ — $ 7,924 $ — Liability derivatives Interest rate swaps - borrowings $ (980 ) $ 950 $ (1,503 ) $ 2,670 $ 6,944 $ 950 $ 6,421 $ 2,670 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. A loss totaling $73,000 and gains totaling $183,000 , respectively, were reclassified from accumulated other comprehensive income into net income during the three and six months ended June 30, 2019 compared to $143,000 and $284,000 , respectively, for the three and six months ended June 30, 2018 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 June 30, 2019 and December 31, 2018 are as follows (in thousands): June 30, 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 7.55 3.08% 3 month LIBOR $ 477,905 $ (41,039 ) $ 477,905 $ (14,796 ) Interest rate swap agreements - loans Other liabilities — — — — — 900,000 (7,037 ) 7.55 3.08% $ 477,905 $ (41,039 ) $ 1,377,905 $ (21,833 ) The effects of Pinnacle Financial's fair value hedge relationships on the income statement during the three and six months ended June 30, 2019 and 2018 were as follows (in thousands): Location of Gain (Loss) on Derivative Amount of Gain (Loss) Recognized in Income Three Months Ended June 30, Six Months Ended June 30, Liability derivatives 2019 2018 2019 2018 Interest rate swaps - securities Interest income on securities $ (15,963 ) $ (1,343 ) $ (26,243 ) $ 236 Interest rate swaps - loans Interest income on loans $ (2,061 ) $ 1,122 $ (6,915 ) $ 1,122 Location of Gain (Loss) on Hedged Item Three Months Ended June 30, Six Months Ended June 30, Liability derivatives - hedged items 2019 2018 2019 2018 Interest rate swaps - securities Interest income on securities $ 15,963 $ 1,343 $ 26,243 $ (236 ) Interest rate swaps - loans Interest income on loans $ 2,061 $ (1,122 ) $ 6,915 $ (1,122 ) The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at June 30, 2019 and December 31, 2018 (in thousands): Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Line item on the balance sheet Securities available-for-sale $ 513,052 $ 515,063 $ 41,039 $ 14,796 Loans (1) $ — $ 907,037 $ — $ 7,037 (1) The carrying amount as shown represents the designated last-of-layer. At December 31, 2018, the total amortized cost basis of the closed portfolio of loans designated in these hedging relationships was $ 2.7 billion. During the second quarter of 2019, the fair value hedging relationship on loans was unwound resulting in a swap termination payment to the counterparty of approximately $14 .0 million. The corresponding loan fair value hedging adjustment of $14 .0 million as of the date of termination will be amortized over the remaining lives of the designated loans. During both the three and six months ended June 30, 2019 , amortization expense totaling $445,000 was recognized as a reduction to interest income on loans.

Fair Value of Financial Instrum

Fair Value of Financial Instruments6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial InstrumentsNote 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 to facilitate customer transactions, interest rate floors designated as cash flow hedges, 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, interest rate swaps designated as fair value and cash flow hedges, and interest rate locks associated with the funding for its mortgage loan originations. The fair value of these liabilities is based on Pinnacle Financial's pricing models that utilize observable market inputs and is reflected within Level 2 of the valuation hierarchy. The following tables present financial instruments measured at fair value on a recurring basis as of June 30, 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) June 30, 2019 Investment securities available-for-sale: U.S. Treasury securities $ 48,917 $ — $ 48,917 $ — U.S. government agency securities 55,023 — 55,023 — Mortgage-backed securities 1,291,913 — 1,291,913 — State and municipal securities 1,636,502 — 1,621,239 15,263 Agency-backed securities 169,423 — 169,423 — Corporate notes and other 55,128 — 55,128 — Total investment securities available-for-sale $ 3,256,906 $ — $ 3,241,643 $ 15,263 Other investments 56,573 — 25,050 31,523 Other assets 79,776 — 79,776 — Total assets at fair value $ 3,393,255 $ — $ 3,346,469 $ 46,786 Other liabilities $ 87,276 $ — $ 87,276 $ — Total liabilities at fair value $ 87,276 $ — $ 87,276 $ — 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) 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 June 30, 2019 and December 31, 2018 (in thousands): June 30, 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 losses for the year-to-date period then ended Other real estate owned $ 26,657 $ — $ — $ 26,657 $ (2,438 ) Impaired loans, net (1) 38,251 — — 38,251 (5,228 ) Total $ 64,908 $ — $ — $ 64,908 $ (7,666 ) 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 June 30, 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 six months ended June 30, 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 and six months ended June 30, 2019 and June 30, 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 June 30, For the six months ended June 30, 2019 2018 2019 2018 Available-for-sale Securities Other Available-for-sale Securities Other Available-for-sale Securities Other assets Available-for-sale Securities Other assets Fair value, beginning of period $ 13,730 $ 28,107 $ 15,226 $ 29,788 $ 14,595 $ 26,422 $ 17,029 $ 28,874 Total realized gains included in income 29 481 30 2,265 59 929 60 2,777 Changes in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at period-end 1,504 — 34 — 1,008 — (631 ) — Purchases — 3,518 — 3,948 — 5,188 — 4,818 Issuances — — — — — — — — Settlements — (584 ) — (257 ) (399 ) (1,017 ) (1,168 ) (725 ) Transfers out of Level 3 — — — (12,166 ) — — — (12,166 ) Fair value, end of period $ 15,263 $ 31,522 $ 15,290 $ 23,578 $ 15,263 $ 31,522 $ 15,290 $ 23,578 Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at period-end $ 29 $ 481 $ 30 $ 2,265 $ 59 $ 929 $ 60 $ 2,777 The following methods and assumptions were used by Pinnacle Financial in estimating its fair value disclosures for financial instruments that are not measured at fair value. In cases where quoted market prices are not available, fair values are based on estimates using discounted cash flow models. Those models are significantly affected by the assumptions used, including the discount rates, estimates of future cash flows and borrower creditworthiness. The fair value estimates presented herein are based on pertinent information available to management as of June 30, 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 June 30, 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): June 30, 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 $ 190,928 $ 200,566 $ — $ 200,566 $ — Loans, net 18,724,065 18,644,090 — — 18,644,090 Consumer loans held-for-sale 70,004 71,108 — 71,108 — Commercial loans held-for-sale 21,295 21,631 — 21,631 — Financial liabilities: Deposits and securities sold under agreements to repurchase 19,603,552 18,966,437 — — 18,966,437 Federal Home Loan Bank advances 1,960,062 1,965,111 — — 1,965,111 Subordinated debt and other borrowings 464,144 446,951 — — 446,951 Off-balance sheet instruments: Commitments to extend credit (2) 7,582,092 1,083 — — 1,083 Standby letters of credit (3) 198,945 1,281 — — 1,281 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 June 30, 2019 and December 31, 2018 , Pinnacle Financial included in other liabilities $1.1 million and $1.7 million, respectively, representing the inherent risks associated with these off-balance sheet commitments. (3) At June 30, 2019 and December 31, 2018 , the aggregate fair value of Pinnacle Financial's standby letters of credit was $1.3 million and $1.1 million, respectively. 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 Matters6 Months Ended
Jun. 30, 2019
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
Regulatory MattersRegulatory 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 six months ended June 30, 2019 , Pinnacle Bank paid $78.7 million in dividends to Pinnacle Financial. As of June 30, 2019, Pinnacle Bank could pay approximately $608.9 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 June 30, 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 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 June 30, 2019 Total capital to risk weighted assets: Pinnacle Financial $ 2,729,341 12.0 % $ 1,821,607 8.0 % NA NA Pinnacle Bank $ 2,563,617 11.3 % $ 1,816,521 8.0 % $ 2,270,651 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 2,168,431 9.5 % $ 1,366,205 6.0 % NA NA Pinnacle Bank $ 2,342,892 10.3 % $ 1,362,391 6.0 % $ 1,816,521 8.0 % Common equity Tier 1 capital to risk weighted assets Pinnacle Financial $ 2,168,308 9.5 % $ 1,024,654 4.5 % NA NA Pinnacle Bank $ 2,342,770 10.3 % $ 1,021,793 4.5 % $ 1,475,923 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 2,168,431 9.1 % $ 957,546 4.0 % NA NA Pinnacle Bank $ 2,342,892 9.8 % $ 955,401 4.0 % $ 1,194,252 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 borrowings6 Months Ended
Jun. 30, 2019
Subordinated Debt [Abstract]
Subordinated Debt and Other borrowingsSubordinated 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. Pinnacle Financial also has a $75 .0 million revolving credit facility, of which it had no outstanding borrowings as of June 30, 2019 . 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 June 30, 2019 (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 5.21 % 30-day LIBOR + 2.80% Pinnacle Statutory Trust II September 15, 2005 September 30, 2035 20,619 3.72 % 30-day LIBOR + 1.40% Pinnacle Statutory Trust III September 7, 2006 September 30, 2036 20,619 3.97 % 30-day LIBOR + 1.65% Pinnacle Statutory Trust IV October 31, 2007 September 30, 2037 30,928 5.26 % 30-day LIBOR + 2.85% BNC Capital Trust I April 3, 2003 April 15, 2033 5,155 5.85 % 30-day LIBOR + 3.25% BNC Capital Trust II March 11, 2004 April 7, 2034 6,186 5.45 % 30-day LIBOR + 2.85% BNC Capital Trust III September 23, 2004 September 23, 2034 5,155 5.00 % 30-day LIBOR + 2.40% BNC Capital Trust IV September 27, 2006 December 31, 2036 7,217 4.02 % 30-day LIBOR + 1.70% Valley Financial Trust I June 26, 2003 June 26, 2033 4,124 5.43 % 30-day LIBOR + 3.10% Name Date Maturity Total Debt Outstanding Interest Rate at Coupon Structure Valley Financial Trust II September 26, 2005 December 15, 2035 7,217 3.90 % 30-day LIBOR + 1.49% Valley Financial Trust III December 15, 2006 January 30, 2037 5,155 4.31 % 30-day LIBOR + 1.73% Southcoast Capital Trust III August 5, 2005 September 30, 2035 10,310 3.82 % 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 8,840 7.44 % 30-day LIBOR + 5.00% (5) Other Borrowings Revolving credit facility (6) April 25, 2019 April 24, 2020 — 3.94 % 30-day LIBOR + 1.50% Debt issuance costs and fair value adjustments (7,691 ) Total subordinated debt and other borrowings $ 464,144 (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 June 30, 2019 , there were no amounts outstanding under this facility. An unused fee of 0.30% is assessed on the average daily unused amount of the loan.

Leases Leases

Leases Leases6 Months Ended
Jun. 30, 2019
Leases [Abstract]
LeasesLeases 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 Financial's operating and finance leases are as follows at June 30, 2019 (in thousands): Balance Sheet Location June 30, 2019 Right-of-use assets Operating leases (1) Other assets $ 72,719 Finance leases Premises and equipment, net 2,100 Total right-of-use assets $ 74,819 Lease liabilities Operating leases Other liabilities $ 80,697 Finance leases Other liabilities 3,359 Total lease liabilities $ 84,056 (1) Presented net of tenant improvement allowances of $1.7 million and purchase accounting fair value adjustments of $2.8 million . Lease costs during the three and six months ended June 30, 2019 related to these leases were as follows (in thousands): Three Months Ended June 30, 2019 Six Months Ended Operating lease cost $ 3,532 $ 6,972 Short-term lease cost 14 28 Finance lease cost: Interest on lease liabilities 61 123 Amortization of right-of-use asset 57 113 Sublease income (312 ) (561 ) Net lease cost $ 3,352 $ 6,675 Rent expense related to leases during the three and six months ended June 30, 2018 was $3.1 million and $6.3 million , respectively. Cash flows related to leases during the three and six months ended June 30, 2019 were as follows (in thousands): Three Months Ended June 30, 2019 Six Months Ended Operating cash flows related to operating leases $ 3,380 $ 6,761 Operating cash flows related to finance leases 61 123 Financing cash flows related to finance leases 57 112 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 June 30, 2019 (in thousands): June 30, 2019 Weighted average remaining lease term: Operating leases 10.60 years Finance leases 9.33 years Weighted average discount rate: Operating leases 3.34 % 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 June 30, 2019 (in thousands): Operating Leases Finance Leases 2019 (1) $ 6,776 $ 235 2020 12,538 470 2021 12,110 470 2022 9,725 470 2023 8,874 479 Thereafter 48,305 2,548 98,328 4,672 Less: Imputed interest (17,631 ) (1,313 ) Total lease liabilities $ 80,697 $ 3,359 (1) Includes the period from July 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
LeasesLeases 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 Financial's operating and finance leases are as follows at June 30, 2019 (in thousands): Balance Sheet Location June 30, 2019 Right-of-use assets Operating leases (1) Other assets $ 72,719 Finance leases Premises and equipment, net 2,100 Total right-of-use assets $ 74,819 Lease liabilities Operating leases Other liabilities $ 80,697 Finance leases Other liabilities 3,359 Total lease liabilities $ 84,056 (1) Presented net of tenant improvement allowances of $1.7 million and purchase accounting fair value adjustments of $2.8 million . Lease costs during the three and six months ended June 30, 2019 related to these leases were as follows (in thousands): Three Months Ended June 30, 2019 Six Months Ended Operating lease cost $ 3,532 $ 6,972 Short-term lease cost 14 28 Finance lease cost: Interest on lease liabilities 61 123 Amortization of right-of-use asset 57 113 Sublease income (312 ) (561 ) Net lease cost $ 3,352 $ 6,675 Rent expense related to leases during the three and six months ended June 30, 2018 was $3.1 million and $6.3 million , respectively. Cash flows related to leases during the three and six months ended June 30, 2019 were as follows (in thousands): Three Months Ended June 30, 2019 Six Months Ended Operating cash flows related to operating leases $ 3,380 $ 6,761 Operating cash flows related to finance leases 61 123 Financing cash flows related to finance leases 57 112 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 June 30, 2019 (in thousands): June 30, 2019 Weighted average remaining lease term: Operating leases 10.60 years Finance leases 9.33 years Weighted average discount rate: Operating leases 3.34 % 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 June 30, 2019 (in thousands): Operating Leases Finance Leases 2019 (1) $ 6,776 $ 235 2020 12,538 470 2021 12,110 470 2022 9,725 470 2023 8,874 479 Thereafter 48,305 2,548 98,328 4,672 Less: Imputed interest (17,631 ) (1,313 ) Total lease liabilities $ 80,697 $ 3,359 (1) Includes the period from July 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)6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]
Basis of PresentationBasis 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 EstimatesUse 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 and determination of any impairment of intangible assets. There have been no significant changes to Pinnacle Financial's significant accounting policies as disclosed in the 2018 10-K.
Income Per Common ShareIncome 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 and six months ended June 30, 2019 and 2018 (in thousands, except per share data): Three months ended Six months ended 2019 2018 2019 2018 Basic net income per share calculation: Numerator - Net income $ 100,321 $ 86,865 $ 194,281 $ 170,375 Denominator - Weighted average common shares outstanding 76,344 77,124 76,572 77,102 Basic net income per common share $ 1.31 $ 1.13 $ 2.54 $ 2.21 Diluted net income per share calculation: Numerator – Net income $ 100,321 $ 86,865 $ 194,281 $ 170,375 Denominator - Weighted average common shares outstanding 76,344 77,124 76,572 77,102 Dilutive shares contingently issuable 268 344 294 316 Weighted average diluted common shares outstanding 76,612 77,468 76,866 77,418 Diluted net income per common share $ 1.31 $ 1.12 $ 2.53 $ 2.20
Recently Adopted Accounting PronouncementsRecently Adopted Accounting Pronouncements — 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 guidance. The guidance requires that a lessee should recognize lease assets and lease liabilities as compared to previous GAAP guidance 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. 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 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 June 30, 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 has concluded that an increase in the overall allowance for loan losses is likely upon adoption of CECL 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 EventsSubsequent 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 June 30, 2019 through the date of the issued financial statements. On July 2, 2019, Pinnacle Bank acquired all of the outstanding stock of Advocate Capital, Inc. for a cash price of $59 million . Advocate Capital is a finance firm headquartered in Nashville, TN which supports the financial needs of legal firms through both case expense financing and working capital lines of credit.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]
Supplemental Cash Flow InformationCash Flow Information — Supplemental cash flow information addressing certain cash and noncash transactions for the six months ended June 30, 2019 and June 30, 2018 was as follows (in thousands): For the six months ended 2019 2018 Cash Transactions: Interest paid $ 141,208 $ 82,321 Income taxes paid, net 41,928 28,105 Noncash Transactions: Loans charged-off to the allowance for loan losses 14,548 15,367 Loans foreclosed upon and transferred to other real estate owned 11,760 1,505 Loans foreclosed upon and transferred to other assets 93 950 Fixed assets transferred to other real estate owned 5,126 — Right-of-use asset recognized during the period in exchange for lease obligations (1) 82,856 — (1) Includes $79.9 million recognized upon initial adoption of ASU 2016-02 on January 1, 2019.
Basic and Diluted Earnings Per Share CalculationsThe following is a summary of the basic and diluted net income per share calculations for the three and six months ended June 30, 2019 and 2018 (in thousands, except per share data): Three months ended Six months ended 2019 2018 2019 2018 Basic net income per share calculation: Numerator - Net income $ 100,321 $ 86,865 $ 194,281 $ 170,375 Denominator - Weighted average common shares outstanding 76,344 77,124 76,572 77,102 Basic net income per common share $ 1.31 $ 1.13 $ 2.54 $ 2.21 Diluted net income per share calculation: Numerator – Net income $ 100,321 $ 86,865 $ 194,281 $ 170,375 Denominator - Weighted average common shares outstanding 76,344 77,124 76,572 77,102 Dilutive shares contingently issuable 268 344 294 316 Weighted average diluted common shares outstanding 76,612 77,468 76,866 77,418 Diluted net income per common share $ 1.31 $ 1.12 $ 2.53 $ 2.20

Equity method investment (Table

Equity method investment (Tables)6 Months Ended
Jun. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Equity Method InvestmentsA summary of BHG's financial position as of June 30, 2019 and December 31, 2018 and results of operations as of and for the three and six months ended June 30, 2019 and 2018 , were as follows (in thousands): As of June 30, 2019 December 31, 2018 Assets $ 606,548 $ 459,816 Liabilities 451,095 324,211 Equity interests 155,453 135,605 Total liabilities and equity $ 606,548 $ 459,816 For the three months ended For the six months ended 2019 2018 2019 2018 Revenues $ 107,982 $ 49,053 $ 170,799 $ 92,804 Net income $ 67,564 $ 19,102 $ 94,699 $ 38,106

Securities (Tables)

Securities (Tables)6 Months Ended
Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract]
Summary of Amortized Cost and Fair Value of Available-for-sale and Held-to-maturity SecuritiesThe amortized cost and fair value of securities available-for-sale and held-to-maturity at June 30, 2019 and December 31, 2018 are summarized as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2019: Securities available-for-sale: U.S. Treasury securities $ 48,883 $ 34 $ — $ 48,917 U.S. government agency securities 55,907 111 995 55,023 Mortgage-backed securities 1,289,189 9,155 6,431 1,291,913 State and municipal securities 1,572,847 64,161 506 1,636,502 Asset-backed securities 169,457 942 976 169,423 Corporate notes and other 56,179 462 1,513 55,128 $ 3,192,462 $ 74,865 $ 10,421 $ 3,256,906 Securities held-to-maturity: State and municipal securities $ 190,928 $ 9,639 $ 1 $ 200,566 $ 190,928 $ 9,639 $ 1 $ 200,566 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 MaturityThe amortized cost and fair value of debt securities as of June 30, 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 June 30, 2019: Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 64,432 $ 64,479 $ 1,401 $ 1,401 Due in one year to five years 18,158 18,203 1,020 1,022 Due in five years to ten years 85,576 85,416 5,779 5,866 Due after ten years 1,565,650 1,627,472 182,728 192,277 Mortgage-backed securities 1,289,189 1,291,913 — — Asset-backed securities 169,457 169,423 — — $ 3,192,462 $ 3,256,906 $ 190,928 $ 200,566
Classification of Investments According to Term of Unrealized Losses of Less than Twelve Months or Twelve Months or LongerAt June 30, 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 June 30, 2019 U.S. Treasury securities $ — $ — $ 250 $ — $ 250 $ — U.S. government agency securities 2,064 9 35,391 986 37,455 995 Mortgage-backed securities 84,937 535 471,224 5,896 556,161 6,431 State and municipal securities 76,291 489 11,663 53 87,954 542 Asset-backed securities 104,510 775 22,373 201 126,883 976 Corporate notes 17,337 508 10,502 1,005 27,839 1,513 Total temporarily-impaired securities $ 285,139 $ 2,316 $ 551,403 $ 8,141 $ 836,542 $ 10,457 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)6 Months Ended
Jun. 30, 2019
Receivables [Abstract]
Loan Classification Categorized by Risk Rating CategoryThe following table outlines the amount of each loan classification categorized into each risk rating category as of June 30, 2019 and December 31, 2018 (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer Total June 30, 2019 Pass $ 7,380,522 $ 2,900,661 $ 2,102,602 $ 5,597,038 $ 364,773 $ 18,345,596 Special Mention 96,283 7,816 7,015 47,930 1,145 160,189 Substandard (1) 84,797 11,381 5,957 130,256 65 232,456 Substandard-nonaccrual 23,790 29,896 2,395 19,883 111 76,075 Doubtful-nonaccrual 1 1 — — — 2 Total loans $ 7,585,393 $ 2,949,755 $ 2,117,969 $ 5,795,107 $ 366,094 $ 18,814,318 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 $227.5 million at June 30, 2019 , compared to $176.3 million at December 31, 2018
Purchase Credit Impaired LoansLoans 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 June 30, 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 (8,878 ) 197 3,157 (5,524 ) June 30, 2019 $ 33,959 $ 83 $ (14,237 ) $ 19,805
Summary of Recorded Investment, Unpaid Principal Balance and Related Allowance and Average Recorded Investment of Impaired LoansImpaired 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 June 30, 2019 and December 31, 2018 by loan classification (in thousands): At June 30, 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 $ 12,639 $ 12,640 $ 778 $ 14,114 $ 14,124 $ 724 Consumer real estate – mortgage 19,770 19,879 2,148 19,864 19,991 1,443 Construction and land development 626 621 43 581 579 28 Commercial and industrial 10,634 10,601 2,560 9,252 9,215 1,441 Consumer and other 111 134 — 983 1,005 328 Total $ 43,780 $ 43,875 $ 5,529 $ 44,794 $ 44,914 $ 3,964 Impaired loans without an allowance: Commercial real estate – mortgage $ 10,332 $ 10,341 $ — $ 14,724 $ 14,739 $ — Consumer real estate – mortgage 10,885 10,909 — 7,247 7,271 — Construction and land development — — — 1,786 1,786 — Commercial and industrial 11,318 11,317 — 14,595 14,627 — Consumer and other — — — — — — Total $ 32,535 $ 32,567 $ — $ 38,352 $ 38,423 $ — Total impaired loans $ 76,315 $ 76,442 $ 5,529 $ 83,146 $ 83,337 $ 3,964 For the three and six months ended June 30, 2019 , the average balance of impaired loans, was $86.2 million and $85.2 million, respectively, compared to $75.1 million and $69.8 million, respectively, for the same periods 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 $89,000 and $176,000 , respectively, in interest income from cash payments received on nonaccrual loans during the three and six months ended June 30, 2019 compared to $153,000 and $253,000 , respectively, during the three and six months ended June 30, 2018 . Had these nonaccruing loans been on accruing status, interest income would have been higher by $1.4 million and $2.6 million, respectively, for the three and six months ended June 30, 2019 compared to $1.2 million and $2.2 million, respectively, higher for the three and six months ended June 30, 2018 . The following table details the average recorded investment and the amount of interest income recognized on a cash basis for the three and six months ended June 30, 2019 and 2018 , respectively, of impaired loans by loan classification (in thousands): For the three months ended For the six months ended 2019 2018 2019 2018 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized Impaired loans with an allowance: Commercial real estate – mortgage $ 15,589 $ — $ 12,527 $ — $ 15,097 $ — $ 8,968 $ — Consumer real estate – mortgage 22,219 — 11,066 — 21,434 — 10,053 — Construction and land development 747 — 1,059 — 692 — 1,547 — Commercial and industrial 9,718 — 7,976 — 9,563 — 9,491 — Consumer and other 221 — 822 — 475 — 548 — Total $ 48,494 $ — $ 33,450 $ — $ 47,261 $ — $ 30,607 $ — Impaired loans without an allowance: Commercial real estate – mortgage $ 13,503 $ 89 $ 18,493 $ 153 $ 13,910 $ 176 $ 17,783 $ 253 Consumer real estate – mortgage 10,658 — 4,805 — 9,521 — 4,585 — Construction and land development — — — — 595 — 882 — Commercial and industrial 13,505 — 18,401 — 13,868 — 15,902 — Consumer and other — — — — — — — — Total $ 37,666 $ 89 $ 41,699 $ 153 $ 37,894 $ 176 $ 39,152 $ 253 Total impaired loans $ 86,160 $ 89 $ 75,149 $ 153 $ 85,155 $ 176 $ 69,759 $ 253
Troubled Debt RestructuringsThe following table outlines the amount of each loan category where troubled debt restructurings were made during the three and six months ended June 30, 2019 and 2018 (dollars in thousands): Three Months Ended Six Months Ended 2019 Number Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment, net of related allowance Number Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment, net of related allowance Commercial real estate – mortgage — $ — $ — — $ — $ — Consumer real estate – mortgage 1 712 626 1 712 626 Construction and land development 1 21 19 1 21 19 Commercial and industrial 1 1,397 796 1 1,397 796 Consumer and other — — — — — — 3 $ 2,130 $ 1,441 3 $ 2,130 $ 1,441 2018 Commercial real estate – mortgage — $ — $ — — $ — $ — Consumer real estate – mortgage 1 38 38 1 38 38 Construction and land development — — — — — — Commercial and industrial — — — — — — Consumer and other — — — — — — 1 $ 38 $ 38 1 $ 38 $ 38
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 June 30, 2019 with the comparative exposures for December 31, 2018 (in thousands): June 30, 2019 Outstanding Principal Balances Unfunded Commitments Total exposure Total Exposure at December 31, 2018 Lessors of nonresidential buildings $ 3,375,085 $ 871,369 $ 4,246,454 $ 3,932,059 Lessors of residential buildings 1,003,666 398,766 1,402,432 1,484,697 New Housing For-Sale Builders 508,964 575,435 1,084,399 1,100,989 Hotels (except Casino Hotels) and Motels 847,103 154,986 1,002,089 920,001
Past Due Balances by Loan ClassificationThe table below presents past due balances by loan classification and segment at June 30, 2019 and December 31, 2018 , allocated between accruing and nonaccrual status (in thousands): Accruing Nonaccruing June 30, 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 (1) Total loans Commercial real estate: Owner-occupied $ 2,373 $ 70 $ 2,443 $ 2,606,321 $ 2,450 $ 11,976 $ 970 $ 2,624,160 All other 4,731 — 4,731 4,940,587 5,070 10,828 17 4,961,233 Consumer real estate – mortgage 10,603 220 10,823 2,905,629 3,406 25,501 4,396 2,949,755 Construction and land development 3,469 — 3,469 2,110,684 1,421 605 1,790 2,117,969 Commercial and industrial 11,420 1,537 12,957 5,761,982 285 19,883 — 5,795,107 Consumer and other 4,658 906 5,564 360,419 — 111 — 366,094 Total $ 37,254 $ 2,733 $ 39,987 $ 18,685,622 $ 12,632 $ 68,904 $ 7,173 $ 18,814,318 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 (1) 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 $34.8 million and $52.5 million of nonaccrual loans as of June 30, 2019 and December 31, 2018 , respectively, were performing pursuant to their contractual terms at those dates .
Details of Changes in the Allowance for Loan LossesThe following table details the changes in the allowance for loan losses for the three and six months ended June 30, 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 June 30, 2019: Balance at March 31, 2019 $ 30,167 $ 8,369 $ 10,915 $ 32,699 $ 4,803 $ 241 $ 87,194 Charged-off loans (1,065 ) (580 ) (4 ) (5,408 ) (1,423 ) — (8,480 ) Recovery of previously charged-off loans 892 372 19 2,744 317 — 4,344 Provision for loan losses 832 328 276 7,401 (1,583 ) (59 ) 7,195 Balance at June 30, 2019 $ 30,826 $ 8,489 $ 11,206 $ 37,436 $ 2,114 $ 182 $ 90,253 Three months ended June 30, 2018: Balance at March 31, 2018 $ 22,688 $ 5,100 $ 10,116 $ 26,648 $ 5,476 $ 176 $ 70,204 Charged-off loans (234 ) (935 ) (10 ) (1,724 ) (3,795 ) — (6,698 ) Recovery of previously charged-off loans 58 537 1,010 567 590 — 2,762 Provision for loan losses 2,336 1,151 (132 ) 2,847 2,901 299 9,402 Balance at June 30, 2018 $ 24,848 $ 5,853 $ 10,984 $ 28,338 $ 5,172 $ 475 $ 75,670 Six months ended June 30, 2019: Balance at December 31, 2018 $ 26,946 $ 7,670 $ 11,128 $ 31,731 $ 5,423 $ 677 $ 83,575 Charged-off loans (1,599 ) (930 ) (4 ) (8,760 ) (3,255 ) — (14,548 ) Recovery of previously charged-off loans 964 741 141 4,342 659 — 6,847 Provision for loan losses 4,515 1,008 (59 ) 10,123 (713 ) (495 ) 14,379 Balance at June 30, 2019 $ 30,826 $ 8,489 $ 11,206 $ 37,436 $ 2,114 $ 182 $ 90,253 Six months ended June 30, 2018: Balance at December 31, 2017 $ 21,188 $ 5,031 $ 8,962 $ 24,863 $ 5,874 $ 1,322 $ 67,240 Charged-off loans (962 ) (1,271 ) (12 ) (4,264 ) (8,858 ) — (15,367 ) Recovery of previously charged-off loans 1,454 1,203 1,575 1,455 1,777 — 7,464 Provision for loan losses 3,168 890 459 6,284 6,379 (847 ) 16,333 Balance at June 30, 2018 $ 24,848 $ 5,853 $ 10,984 $ 28,338 $ 5,172 $ 475 $ 75,670 The following table details the allowance for loan losses and recorded investment in loans by loan classification and by impairment evaluation method as of June 30, 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 June 30, 2019 Allowance for Loan Losses: Collectively evaluated for impairment $ 30,048 $ 6,341 $ 11,163 $ 34,876 $ 2,114 $ 84,542 Individually evaluated for impairment 778 2,148 43 2,560 — 5,529 Loans acquired with deteriorated credit quality (1) — — — — — — Total allowance for loan losses $ 30,826 $ 8,489 $ 11,206 $ 37,436 $ 2,114 $ 182 $ 90,253 Loans: Collectively evaluated for impairment $ 7,553,915 $ 2,911,298 $ 2,114,132 $ 5,772,870 $ 365,983 $ 18,718,198 Individually evaluated for impairment 22,971 30,655 626 21,952 111 76,315 Loans acquired with deteriorated credit quality 8,507 7,802 3,211 285 — 19,805 Total loans $ 7,585,393 $ 2,949,755 $ 2,117,969 $ 5,795,107 $ 366,094 $ 18,814,318 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.

Stock Options and Restricted _2

Stock Options and Restricted Shares (Tables)6 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Summary of Stock Option ActivityA summary of the stock option activity within the equity incentive plans during the six months ended June 30, 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 (5,600 ) Forfeited — Outstanding at June 30, 2019 171,109 $ 22.70 2.81 $ 5,951 (2) Options exercisable at June 30, 2019 171,109 $ 22.70 2.81 $ 5,951 (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 $57.48 per common share at June 30, 2019 for the 171,109 options that were in-the-money at June 30, 2019 .
Summary of Activity for Unvested Restricted Share AwardsA summary of activity for unvested restricted share awards for the six months ended June 30, 2019 is as follows: Number Grant Date Weighted-Average Cost Unvested at December 31, 2018 692,806 $ 55.19 Shares awarded 209,220 Restrictions lapsed and shares released to associates/directors (261,061 ) Shares forfeited (1) (19,211 ) Unvested at June 30, 2019 621,754 $ 56.99 (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 six months ended June 30, 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 - 5 192,671 224 5,124 187,323 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 was terminated during the year-to-date period ended June 30, 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 awardsThe following table details the restricted share unit awards (all of which are performance units) outstanding at June 30, 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 its loans plus ORE is less than amounts established in the applicable award agreement.

Derivative Instruments (Tables)

Derivative Instruments (Tables)6 Months Ended
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of Interest Rate SwapsA summary of Pinnacle Financial's interest rate swaps to facilitate customers' transactions as of June 30, 2019 and December 31, 2018 is included in the following table (in thousands): June 30, 2019 December 31, 2018 Balance Sheet Location Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Interest rate swap agreements: Assets Other assets $ 1,132,854 $ 41,659 $ 1,059,724 $ 22,273 Liabilities Other liabilities 1,132,854 (41,889 ) 1,059,724 (22,401 ) Total $ 2,265,708 $ (230 ) $ 2,119,448 $ (128 ) The effects of Pinnacle Financial's interest rate swaps to facilitate customers' transactions on the income statement during the three and six months ended June 30, 2019 and 2018 were as follows net of tax (in thousands): Amount of Gain (Loss) Recognized in Income Location of Loss Recognized in Income Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest rate swap agreements Other noninterest income $ (89 ) $ (14 ) $ (102 ) $ (34 )
Schedule of Derivative InstrumentsDerivatives 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 hedges in an effort to manage future interest rate exposure on borrowings. 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. During the second quarter of 2019, Pinnacle Financial purchased an interest rate floor to mitigate the impact of declining interest rates on LIBOR-based variable rate loans. A summary of Pinnacle Financial's cash flow hedge relationships as of June 30, 2019 and December 31, 2018 are as follows (in thousands): June 30, 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 Asset derivatives Interest rate floor Other assets 2.34 —% 2.75% minus 1 month LIBOR $ 1,300,000 $ 34,428 $ — $ — Liability derivatives Interest rate swaps Other liabilities 2.85 3.09% 3 month LIBOR $ 99,000 $ (3,793 ) $ 99,000 $ (1,757 ) The effects of Pinnacle Financial's cash flow hedge relationships on the statement of comprehensive income (loss) during the three and six months ended June 30, 2019 and 2018 were as follows (in thousands): Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended June 30, Six Months Ended June 30, Asset derivatives 2019 2018 2019 2018 Interest rate floor - loans $ 7,924 $ — $ 7,924 $ — Liability derivatives Interest rate swaps - borrowings $ (980 ) $ 950 $ (1,503 ) $ 2,670 $ 6,944 $ 950 $ 6,421 $ 2,670 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. A loss totaling $73,000 and gains totaling $183,000 , respectively, were reclassified from accumulated other comprehensive income into net income during the three and six months ended June 30, 2019 compared to $143,000 and $284,000 , respectively, for the three and six months ended June 30, 2018 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 June 30, 2019 and December 31, 2018 are as follows (in thousands): June 30, 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 7.55 3.08% 3 month LIBOR $ 477,905 $ (41,039 ) $ 477,905 $ (14,796 ) Interest rate swap agreements - loans Other liabilities — — — — — 900,000 (7,037 ) 7.55 3.08% $ 477,905 $ (41,039 ) $ 1,377,905 $ (21,833 ) The effects of Pinnacle Financial's fair value hedge relationships on the income statement during the three and six months ended June 30, 2019 and 2018 were as follows (in thousands): Location of Gain (Loss) on Derivative Amount of Gain (Loss) Recognized in Income Three Months Ended June 30, Six Months Ended June 30, Liability derivatives 2019 2018 2019 2018 Interest rate swaps - securities Interest income on securities $ (15,963 ) $ (1,343 ) $ (26,243 ) $ 236 Interest rate swaps - loans Interest income on loans $ (2,061 ) $ 1,122 $ (6,915 ) $ 1,122 Location of Gain (Loss) on Hedged Item Three Months Ended June 30, Six Months Ended June 30, Liability derivatives - hedged items 2019 2018 2019 2018 Interest rate swaps - securities Interest income on securities $ 15,963 $ 1,343 $ 26,243 $ (236 ) Interest rate swaps - loans Interest income on loans $ 2,061 $ (1,122 ) $ 6,915 $ (1,122 ) The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at June 30, 2019 and December 31, 2018 (in thousands): Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Line item on the balance sheet Securities available-for-sale $ 513,052 $ 515,063 $ 41,039 $ 14,796 Loans (1) $ — $ 907,037 $ — $ 7,037 (1) The carrying amount as shown represents the designated last-of-layer. At December 31, 2018, the total amortized cost basis of the closed portfolio of loans designated in these hedging relationships was $ 2.7 billion. During the second quarter of 2019, the fair value hedging relationship on loans was unwound resulting in a swap termination payment to the counterparty of approximately $14 .0 million. The corresponding loan fair value hedging adjustment of $14 .0 million as of the date of termination will be amortized over the remaining lives of the designated loans. During both the three and six months ended June 30, 2019 , amortization expense totaling $445,000 was recognized as a reduction to interest income on loans.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring BasisThe following tables present financial instruments measured at fair value on a recurring basis as of June 30, 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) June 30, 2019 Investment securities available-for-sale: U.S. Treasury securities $ 48,917 $ — $ 48,917 $ — U.S. government agency securities 55,023 — 55,023 — Mortgage-backed securities 1,291,913 — 1,291,913 — State and municipal securities 1,636,502 — 1,621,239 15,263 Agency-backed securities 169,423 — 169,423 — Corporate notes and other 55,128 — 55,128 — Total investment securities available-for-sale $ 3,256,906 $ — $ 3,241,643 $ 15,263 Other investments 56,573 — 25,050 31,523 Other assets 79,776 — 79,776 — Total assets at fair value $ 3,393,255 $ — $ 3,346,469 $ 46,786 Other liabilities $ 87,276 $ — $ 87,276 $ — Total liabilities at fair value $ 87,276 $ — $ 87,276 $ — 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) 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 BasisThe following table presents assets measured at fair value on a nonrecurring basis as of June 30, 2019 and December 31, 2018 (in thousands): June 30, 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 losses for the year-to-date period then ended Other real estate owned $ 26,657 $ — $ — $ 26,657 $ (2,438 ) Impaired loans, net (1) 38,251 — — 38,251 (5,228 ) Total $ 64,908 $ — $ — $ 64,908 $ (7,666 ) 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 June 30, 2019 and December 31, 2018 , respectively, as required by ASC 310-10, "Receivables."
Rollforward of the Balance Sheet Amounts, Unobservable Input ReconciliationThe table below includes a rollforward of the balance sheet amounts for the three and six months ended June 30, 2019 and June 30, 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 June 30, For the six months ended June 30, 2019 2018 2019 2018 Available-for-sale Securities Other Available-for-sale Securities Other Available-for-sale Securities Other assets Available-for-sale Securities Other assets Fair value, beginning of period $ 13,730 $ 28,107 $ 15,226 $ 29,788 $ 14,595 $ 26,422 $ 17,029 $ 28,874 Total realized gains included in income 29 481 30 2,265 59 929 60 2,777 Changes in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at period-end 1,504 — 34 — 1,008 — (631 ) — Purchases — 3,518 — 3,948 — 5,188 — 4,818 Issuances — — — — — — — — Settlements — (584 ) — (257 ) (399 ) (1,017 ) (1,168 ) (725 ) Transfers out of Level 3 — — — (12,166 ) — — — (12,166 ) Fair value, end of period $ 15,263 $ 31,522 $ 15,290 $ 23,578 $ 15,263 $ 31,522 $ 15,290 $ 23,578 Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at period-end $ 29 $ 481 $ 30 $ 2,265 $ 59 $ 929 $ 60 $ 2,777
Carrying Amounts, Estimated Fair Value and Placement in the Fair Value Hierarchy of Financial InstrumentsThe following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at June 30, 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): June 30, 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 $ 190,928 $ 200,566 $ — $ 200,566 $ — Loans, net 18,724,065 18,644,090 — — 18,644,090 Consumer loans held-for-sale 70,004 71,108 — 71,108 — Commercial loans held-for-sale 21,295 21,631 — 21,631 — Financial liabilities: Deposits and securities sold under agreements to repurchase 19,603,552 18,966,437 — — 18,966,437 Federal Home Loan Bank advances 1,960,062 1,965,111 — — 1,965,111 Subordinated debt and other borrowings 464,144 446,951 — — 446,951 Off-balance sheet instruments: Commitments to extend credit (2) 7,582,092 1,083 — — 1,083 Standby letters of credit (3) 198,945 1,281 — — 1,281 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 June 30, 2019 and December 31, 2018 , Pinnacle Financial included in other liabilities $1.1 million and $1.7 million, respectively, representing the inherent risks associated with these off-balance sheet commitments. (3) At June 30, 2019 and December 31, 2018 , the aggregate fair value of Pinnacle Financial's standby letters of credit was $1.3 million and $1.1 million, respectively. 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)6 Months Ended
Jun. 30, 2019
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
Summary of Regulatory Capital RequirementThe 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 June 30, 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 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 June 30, 2019 Total capital to risk weighted assets: Pinnacle Financial $ 2,729,341 12.0 % $ 1,821,607 8.0 % NA NA Pinnacle Bank $ 2,563,617 11.3 % $ 1,816,521 8.0 % $ 2,270,651 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 2,168,431 9.5 % $ 1,366,205 6.0 % NA NA Pinnacle Bank $ 2,342,892 10.3 % $ 1,362,391 6.0 % $ 1,816,521 8.0 % Common equity Tier 1 capital to risk weighted assets Pinnacle Financial $ 2,168,308 9.5 % $ 1,024,654 4.5 % NA NA Pinnacle Bank $ 2,342,770 10.3 % $ 1,021,793 4.5 % $ 1,475,923 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 2,168,431 9.1 % $ 957,546 4.0 % NA NA Pinnacle Bank $ 2,342,892 9.8 % $ 955,401 4.0 % $ 1,194,252 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)6 Months Ended
Jun. 30, 2019
Subordinated Debt [Abstract]
Schedule of Subordinated Debt and Other BorrowingsPinnacle Financial has twelve wholly-owned subsidiaries that are statutory business trusts created for the exclusive purpose of issuing 30 -year capital trust preferred securities. Pinnacle Financial also has a $75 .0 million revolving credit facility, of which it had no outstanding borrowings as of June 30, 2019 . 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 June 30, 2019 (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 5.21 % 30-day LIBOR + 2.80% Pinnacle Statutory Trust II September 15, 2005 September 30, 2035 20,619 3.72 % 30-day LIBOR + 1.40% Pinnacle Statutory Trust III September 7, 2006 September 30, 2036 20,619 3.97 % 30-day LIBOR + 1.65% Pinnacle Statutory Trust IV October 31, 2007 September 30, 2037 30,928 5.26 % 30-day LIBOR + 2.85% BNC Capital Trust I April 3, 2003 April 15, 2033 5,155 5.85 % 30-day LIBOR + 3.25% BNC Capital Trust II March 11, 2004 April 7, 2034 6,186 5.45 % 30-day LIBOR + 2.85% BNC Capital Trust III September 23, 2004 September 23, 2034 5,155 5.00 % 30-day LIBOR + 2.40% BNC Capital Trust IV September 27, 2006 December 31, 2036 7,217 4.02 % 30-day LIBOR + 1.70% Valley Financial Trust I June 26, 2003 June 26, 2033 4,124 5.43 % 30-day LIBOR + 3.10% Name Date Maturity Total Debt Outstanding Interest Rate at Coupon Structure Valley Financial Trust II September 26, 2005 December 15, 2035 7,217 3.90 % 30-day LIBOR + 1.49% Valley Financial Trust III December 15, 2006 January 30, 2037 5,155 4.31 % 30-day LIBOR + 1.73% Southcoast Capital Trust III August 5, 2005 September 30, 2035 10,310 3.82 % 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 8,840 7.44 % 30-day LIBOR + 5.00% (5) Other Borrowings Revolving credit facility (6) April 25, 2019 April 24, 2020 — 3.94 % 30-day LIBOR + 1.50% Debt issuance costs and fair value adjustments (7,691 ) Total subordinated debt and other borrowings $ 464,144 (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 June 30, 2019 , there were no amounts outstanding under this facility. An unused fee of 0.30% is assessed on the average daily unused amount of the loan.

Leases Leases (Tables)

Leases Leases (Tables)6 Months Ended
Jun. 30, 2019
Leases [Abstract]
Schedule of Lease Assets and LiabilitiesRight-of-use assets and lease liabilities related to Pinnacle Financial's operating and finance leases are as follows at June 30, 2019 (in thousands): Balance Sheet Location June 30, 2019 Right-of-use assets Operating leases (1) Other assets $ 72,719 Finance leases Premises and equipment, net 2,100 Total right-of-use assets $ 74,819 Lease liabilities Operating leases Other liabilities $ 80,697 Finance leases Other liabilities 3,359 Total lease liabilities $ 84,056 (1) Presented net of tenant improvement allowances of $1.7 million and purchase accounting fair value adjustments of $2.8 million .
Schedule of Lease Costs and Other InformationLease costs during the three and six months ended June 30, 2019 related to these leases were as follows (in thousands): Three Months Ended June 30, 2019 Six Months Ended Operating lease cost $ 3,532 $ 6,972 Short-term lease cost 14 28 Finance lease cost: Interest on lease liabilities 61 123 Amortization of right-of-use asset 57 113 Sublease income (312 ) (561 ) Net lease cost $ 3,352 $ 6,675 Rent expense related to leases during the three and six months ended June 30, 2018 was $3.1 million and $6.3 million , respectively. Cash flows related to leases during the three and six months ended June 30, 2019 were as follows (in thousands): Three Months Ended June 30, 2019 Six Months Ended Operating cash flows related to operating leases $ 3,380 $ 6,761 Operating cash flows related to finance leases 61 123 Financing cash flows related to finance leases 57 112 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 June 30, 2019 (in thousands): June 30, 2019 Weighted average remaining lease term: Operating leases 10.60 years Finance leases 9.33 years Weighted average discount rate: Operating leases 3.34 % Finance leases 7.22 %
Schedule of Future Minimum Operating Lease PaymentsThe 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 June 30, 2019 (in thousands): Operating Leases Finance Leases 2019 (1) $ 6,776 $ 235 2020 12,538 470 2021 12,110 470 2022 9,725 470 2023 8,874 479 Thereafter 48,305 2,548 98,328 4,672 Less: Imputed interest (17,631 ) (1,313 ) Total lease liabilities $ 80,697 $ 3,359 (1) Includes the period from July 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 PaymentsThe 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 June 30, 2019 (in thousands): Operating Leases Finance Leases 2019 (1) $ 6,776 $ 235 2020 12,538 470 2021 12,110 470 2022 9,725 470 2023 8,874 479 Thereafter 48,305 2,548 98,328 4,672 Less: Imputed interest (17,631 ) (1,313 ) Total lease liabilities $ 80,697 $ 3,359 (1) Includes the period from July 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) $ in MillionsJul. 02, 2019USD ($)Jun. 30, 2019market
Schedule of Equity Method Investments [Line Items]
Number of markets entity operates | market11
Subsequent Event | Advocate Capital, Inc.
Schedule of Equity Method Investments [Line Items]
Acquisition, cash price | $ $ 59
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 ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018Jan. 01, 2019
Cash Transactions:
Interest paid $ 141,208 $ 82,321
Income taxes paid, net41,928 28,105
Noncash Transactions:
Loans charged-off to the allowance for loan losses $ 8,480 $ 6,698 14,548 15,367
Loans foreclosed upon and transferred to other real estate owned11,760 1,505
Loans foreclosed upon and transferred to other assets93 950
Fixed assets transferred to other real estate owned5,126 0
Right of use assets recognized during the period $ 82,856 $ 0
Accounting Standards Update 2016-02
Noncash Transactions:
Recognized upon initial adoption of ASU $ 79,900

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Basic and Diluted Net Income Per Share Calculations (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Basic net income per share calculation:
Numerator - Net income $ 100,321 $ 86,865 $ 194,281 $ 170,375
Denominator - Weighted average common shares outstanding (in shares)76,343,608 77,123,854 76,572,120 77,101,816
Basic net income per common share (in dollars per share) $ 1.31 $ 1.13 $ 2.54 $ 2.21
Diluted net income per share calculation:
Numerator – Net income $ 100,321 $ 86,865 $ 194,281 $ 170,375
Denominator - Weighted average common shares outstanding (in shares)76,344,000 77,124,000 76,572,000 77,102,000
Dilutive shares contingently issuable (in shares)268,000 344,000 294,000 316,000
Weighted average diluted common shares outstanding (in shares)76,611,657 77,468,082 76,866,163 77,417,930
Diluted net income per common share (in dollars per share) $ 1.31 $ 1.12 $ 2.53 $ 2.20

Equity method investment - Fina

Equity method investment - Financial Position and Results of Operations (Details) - Bankers Healthcare Group, LLC - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Assets $ 606,548 $ 606,548 $ 459,816
Liabilities451,095 451,095 324,211
Equity interests155,453 155,453 135,605
Total liabilities and equity606,548 606,548 $ 459,816
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
Revenues107,982 $ 49,053 170,799 $ 92,804
Net income $ 67,564 $ 19,102 $ 94,699 $ 38,106

Equity method investment - Narr

Equity method investment - Narrative (Details) - USD ($)3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018Dec. 31, 2018Mar. 31, 2018
Schedule of Equity Method Investments [Line Items]
Technology, trade name and customer relationship intangibles $ 41,578,000 $ 41,578,000 $ 46,161,000
Amortization of Intangible Assets2,271,000 $ 2,659,000 4,582,000 $ 5,357,000
Dividends received from equity method investment40,914,000 23,433,000
Bankers Healthcare Group, LLC
Schedule of Equity Method Investments [Line Items]
Technology, trade name and customer relationship intangibles9,700,000 9,700,000 $ 10,700,000
Amortization of Intangible Assets475,000 693,000 950,000 1,400,000
Accretion income660,000 729,000 1,300,000 1,500,000
Dividends received from equity method investment28,200,000 $ 19,100,000 40,900,000 $ 23,400,000
Loan face amount $ 0 $ 0 $ 0

Securities - Amortized Cost and

Securities - Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Sep. 30, 2018Dec. 31, 2018Jun. 30, 2019
Securities available-for-sale [Abstract]
Amortized Cost $ 3,131,227 $ 3,192,462
Gross Unrealized Gains7,934 74,865
Gross Unrealized Losses55,475 10,421
Securities available-for-sale, at fair value3,083,686 3,256,906
Available-for-sale, Amortized Cost [Abstract]
Due in one year or less64,432
Due in one year to five years18,158
Due in five years to ten years85,576
Due after ten years1,565,650
Mortgage-backed securities1,289,189
Asset-backed securities169,457
Amortized Cost3,192,462
Available-for-sale, Fair Value [Abstract]
Due in one year or less64,479
Due in one year to five years18,203
Due in five years to ten years85,416
Due after ten years1,627,472
Mortgage-backed securities1,291,913
Asset-backed securities169,423
Securities available-for-sale, at fair value3,083,686 3,256,906
Schedule of Held-to-maturity Securities [Line Items]
Available-for-sale securities transferred to Held-to-Maturity179,800
Net unrealized after tax loss $ 2,200
Securities held-to-maturity [Abstract]
Amortized Cost194,282 190,928
Gross Unrealized Gains152 9,639
Gross Unrealized Losses1,303 1
Securities held-to-maturity, fair value193,131 200,566
Held-to-maturity, Amortized Cost [Abstract]
Due in one year or less1,401
Due in one year to five years1,020
Due in five years to ten years5,779
Due after ten years182,728
Mortgage-backed securities0
Asset-backed securities0
Amortized Cost194,282 190,928
Held-to-maturity, Fair Value [Abstract]
Due in one year or less1,401
Due in one year to five years1,022
Due in five years to ten years5,866
Due after ten years192,277
Mortgage-backed securities0
Asset-backed securities0
Fair Value193,131 200,566
U.S. Treasury securities
Securities available-for-sale [Abstract]
Amortized Cost30,325 48,883
Gross Unrealized Gains0 34
Gross Unrealized Losses25 0
Securities available-for-sale, at fair value30,300 48,917
Available-for-sale, Fair Value [Abstract]
Securities available-for-sale, at fair value30,300 48,917
U.S. government agency securities
Securities available-for-sale [Abstract]
Amortized Cost71,456 55,907
Gross Unrealized Gains49 111
Gross Unrealized Losses1,346 995
Securities available-for-sale, at fair value70,159 55,023
Available-for-sale, Fair Value [Abstract]
Securities available-for-sale, at fair value70,159 55,023
Mortgage-backed securities
Securities available-for-sale [Abstract]
Amortized Cost1,336,469 1,289,189
Gross Unrealized Gains3,110 9,155
Gross Unrealized Losses28,634 6,431
Securities available-for-sale, at fair value1,310,945 1,291,913
Available-for-sale, Fair Value [Abstract]
Securities available-for-sale, at fair value1,310,945 1,291,913
State and municipal securities
Securities available-for-sale [Abstract]
Amortized Cost1,244,471 1,572,847
Gross Unrealized Gains3,785 64,161
Gross Unrealized Losses18,602 506
Securities available-for-sale, at fair value1,229,654 1,636,502
Available-for-sale, Fair Value [Abstract]
Securities available-for-sale, at fair value1,229,654 1,636,502
Asset-backed securities
Securities available-for-sale [Abstract]
Amortized Cost379,107 169,457
Gross Unrealized Gains820 942
Gross Unrealized Losses4,345 976
Securities available-for-sale, at fair value375,582 169,423
Available-for-sale, Fair Value [Abstract]
Securities available-for-sale, at fair value375,582 169,423
Corporate notes and other
Securities available-for-sale [Abstract]
Amortized Cost69,399 56,179
Gross Unrealized Gains170 462
Gross Unrealized Losses2,523 1,513
Securities available-for-sale, at fair value67,046 55,128
Available-for-sale, Fair Value [Abstract]
Securities available-for-sale, at fair value67,046 55,128
State and municipal securities
Securities held-to-maturity [Abstract]
Amortized Cost194,282 190,928
Gross Unrealized Gains152 9,639
Gross Unrealized Losses1,303 1
Securities held-to-maturity, fair value193,131 200,566
Held-to-maturity, Amortized Cost [Abstract]
Amortized Cost194,282 190,928
Held-to-maturity, Fair Value [Abstract]
Fair Value $ 193,131 $ 200,566

Securities- Unrealized Losses (

Securities- Unrealized Losses (Details) - USD ($) $ in ThousandsJun. 30, 2019Dec. 31, 2018
Available-for-sale securities, continuous unrealized loss position [Abstract]
Investments with an unrealized loss of less than 12 months, fair value $ 285,139 $ 1,347,820
Investments with an unrealized loss of less than 12 months, unrealized losses2,316 26,783
Investments with an unrealized loss of 12 months or longer, fair value551,403 1,161,369
Investments with an unrealized loss of 12 months or longer, unrealized losses8,141 32,811
Total investments with an unrealized loss, fair value836,542 2,509,189
Total investments with an unrealized loss, unrealized losses10,457 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 value0 30,054
Investments with an unrealized loss of less than 12 months, unrealized losses0 22
Investments with an unrealized loss of 12 months or longer, fair value250 246
Investments with an unrealized loss of 12 months or longer, unrealized losses0 3
Total investments with an unrealized loss, fair value250 30,300
Total investments with an unrealized loss, unrealized losses0 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 value2,064 13,697
Investments with an unrealized loss of less than 12 months, unrealized losses9 328
Investments with an unrealized loss of 12 months or longer, fair value35,391 42,539
Investments with an unrealized loss of 12 months or longer, unrealized losses986 1,018
Total investments with an unrealized loss, fair value37,455 56,236
Total investments with an unrealized loss, unrealized losses995 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 value84,937 203,299
Investments with an unrealized loss of less than 12 months, unrealized losses535 2,134
Investments with an unrealized loss of 12 months or longer, fair value471,224 882,231
Investments with an unrealized loss of 12 months or longer, unrealized losses5,896 26,500
Total investments with an unrealized loss, fair value556,161 1,085,530
Total investments with an unrealized loss, unrealized losses6,431 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 value76,291 805,821
Investments with an unrealized loss of less than 12 months, unrealized losses489 18,643
Investments with an unrealized loss of 12 months or longer, fair value11,663 198,610
Investments with an unrealized loss of 12 months or longer, unrealized losses53 4,078
Total investments with an unrealized loss, fair value87,954 1,004,431
Total investments with an unrealized loss, unrealized losses542 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 value104,510 268,677
Investments with an unrealized loss of less than 12 months, unrealized losses775 4,118
Investments with an unrealized loss of 12 months or longer, fair value22,373 11,828
Investments with an unrealized loss of 12 months or longer, unrealized losses201 227
Total investments with an unrealized loss, fair value126,883 280,505
Total investments with an unrealized loss, unrealized losses976 4,345
Corporate notes
Available-for-sale securities, continuous unrealized loss position [Abstract]
Investments with an unrealized loss of less than 12 months, fair value17,337 26,272
Investments with an unrealized loss of less than 12 months, unrealized losses508 1,538
Investments with an unrealized loss of 12 months or longer, fair value10,502 25,915
Investments with an unrealized loss of 12 months or longer, unrealized losses1,005 985
Total investments with an unrealized loss, fair value27,839 52,187
Total investments with an unrealized loss, unrealized losses $ 1,513 $ 2,523

Securities Securities - Narrati

Securities Securities - Narrative (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended12 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018Dec. 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 $ 1,200,000 $ 1,200,000
Secured borrowing under agreement to repurchase154,200 154,200
Accumulated unrealized losses10,457 10,457 $ 59,594
Fair value of securities836,542 836,542 2,509,189
Debt Securities Available-for-sale Sold Amount350,100 476,700
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax(3,299) $ 0 (4,746) $ 22
Available-for-sale securities transferred to Held-to-Maturity $ 179,800
Securities pledged as collateral
Debt Securities, Available-for-sale [Line Items]
Secured borrowing under agreement to repurchase $ 154,200 $ 154,200

Loans and Allowance for Loan _3

Loans and Allowance for Loan Losses Loans and Allowance for Loan Losses - Narrative (Details)3 Months Ended6 Months Ended
Jun. 30, 2019USD ($)Jun. 30, 2018USD ($)Jun. 30, 2019USD ($)Jun. 30, 2018USD ($)Dec. 31, 2018USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of contracts0 0
Percentage of loan portfolio as commercial loan80.50%80.50%
Risk rated loans $ 1,000,000 $ 1,000,000
Average balance of impaired loans86,160,000 $ 75,149,000 85,155,000 $ 69,759,000
Cash payments received on nonaccrual loans89,000 153,000 176,000 253,000
Nonaccrual loans1,400,000 1,200,000 2,600,000 2,200,000
Loan losses, allowance90,253,000 90,253,000 $ 83,575,000
Troubled debt restructurings performing as of restructure date $ 7,400,000 $ 7,400,000 5,900,000
Percentage of credit exposure to risk based capital25.00%25.00%
Loans and other extensions of credit granted to directors, executive officers, and their related entities $ 38,400,000 $ 38,400,000 37,900,000
Amount drawn from loans and other extensions of credit granted19,600,000 19,600,000 18,300,000
Commercial loans held-for-sale21,295,000 21,295,000 15,954,000
Mortgage loans held-for-sale55,700,000 55,700,000 $ 31,800,000
Loans sold485,600,000 636,700,000
Gain on mortgage loans sold, net $ 6,000,000 $ 3,800,000 $ 10,900,000 $ 7,500,000
Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of credit exposure to risk based capital82.60%82.60%85.20%
Non-owner occupied commercial real estate and multifamily loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of credit exposure to risk based capital288.90%288.90%277.70%
Troubled Debt Restructurings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan losses, allowance $ 900,000 $ 900,000 $ 0

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses - Loan Classification by Risk Rating Category (Details) - USD ($) $ in ThousandsJun. 30, 2019Dec. 31, 2018
Financing Receivable, Credit Quality Indicator [Line Items]
Loans $ 18,814,318 $ 17,707,549
Potential problem loans not included in nonperforming assets227,500 176,300
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans18,345,596 17,346,673
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans160,189 93,163
Substandard-accrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans[1]232,456 179,879
Substandard-nonaccrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans76,075 87,834
Doubtful-nonaccrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans2 0
Commercial real estate - mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Loans7,585,393 7,164,954
Commercial real estate - mortgage | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans7,380,522 6,998,485
Commercial real estate - mortgage | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans96,283 55,932
Commercial real estate - mortgage | Substandard-accrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans[1]84,797 78,202
Commercial real estate - mortgage | Substandard-nonaccrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans23,790 32,335
Commercial real estate - mortgage | Doubtful-nonaccrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans1 0
Consumer real estate - mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Loans2,949,755 2,844,447
Consumer real estate - mortgage | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans2,900,661 2,787,570
Consumer real estate - mortgage | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans7,816 7,902
Consumer real estate - mortgage | Substandard-accrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans[1]11,381 20,906
Consumer real estate - mortgage | Substandard-nonaccrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans29,896 28,069
Consumer real estate - mortgage | Doubtful-nonaccrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans1 0
Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Loans2,117,969 2,072,455
Construction and land development | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans2,102,602 2,059,376
Construction and land development | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans7,015 4,334
Construction and land development | Substandard-accrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans[1]5,957 5,358
Construction and land development | Substandard-nonaccrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans2,395 3,387
Construction and land development | Doubtful-nonaccrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans0 0
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Loans5,795,107 5,271,421
Commercial and industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans5,597,038 5,148,726
Commercial and industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans47,930 24,284
Commercial and industrial | Substandard-accrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans[1]130,256 75,351
Commercial and industrial | Substandard-nonaccrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans19,883 23,060
Commercial and industrial | Doubtful-nonaccrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans0 0
Consumer and other
Financing Receivable, Credit Quality Indicator [Line Items]
Loans366,094 354,272
Consumer and other | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans364,773 352,516
Consumer and other | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans1,145 711
Consumer and other | Substandard-accrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans[1]65 62
Consumer and other | Substandard-nonaccrual
Financing Receivable, Credit Quality Indicator [Line Items]
Loans111 983
Consumer and other | Doubtful-nonaccrual
Financing Receivable, Credit Quality Indicator [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 $227.5 million at June 30, 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 Thousands6 Months Ended
Jun. 30, 2019USD ($)
Gross Carrying Value
Gross carrying value, beginning balance $ 42,837
Acquisitions0
Year-to-date settlements8,878
Gross carrying value, ending balance33,959
Accretable Yield
Accretable yield, beginning balance(114)
Acquired Accretable Yield0
Year-to-date settlements197
Accretable yield, ending balance(83)
Nonaccretable Yield
Nonaccretable yield, beginning balance(17,394)
Acquired Nonaccretable Yield0
Year-to-date settlements3,157
Nonaccretable yield, ending balance(14,237)
Net Carrying Value
Net carrying value, beginning balance25,329
Acquisitions0
Year-to-date settlements5,524
Net carrying value, ending balance $ 19,805

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses - Recorded Investment, Principal Balance and Related Allowance (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018Dec. 31, 2018
Financing Receivable, Impaired [Line Items]
Recorded investment $ 76,315 $ 76,315 $ 83,146
Unpaid principal balances76,442 76,442 83,337
Valuation allowance5,529 5,529 3,964
Average recorded investment86,160 $ 75,149 85,155 $ 69,759
Interest income recognized89 153 176 253
Impaired loans with an allowance:
Financing Receivable, Impaired [Line Items]
Recorded investment43,780 43,780 44,794
Unpaid principal balances43,875 43,875 44,914
Valuation allowance5,529 5,529 3,964
Average recorded investment48,494 33,450 47,261 30,607
Interest income recognized0 0 0 0
Impaired loans with an allowance: | Commercial real estate - mortgage
Financing Receivable, Impaired [Line Items]
Recorded investment12,639 12,639 14,114
Unpaid principal balances12,640 12,640 14,124
Valuation allowance778 778 724
Average recorded investment15,589 12,527 15,097 8,968
Interest income recognized0 0 0 0
Impaired loans with an allowance: | Consumer real estate - mortgage
Financing Receivable, Impaired [Line Items]
Recorded investment19,770 19,770 19,864
Unpaid principal balances19,879 19,879 19,991
Valuation allowance2,148 2,148 1,443
Average recorded investment22,219 11,066 21,434 10,053
Interest income recognized0 0 0 0
Impaired loans with an allowance: | Construction and land development
Financing Receivable, Impaired [Line Items]
Recorded investment626 626 581
Unpaid principal balances621 621 579
Valuation allowance43 43 28
Average recorded investment747 1,059 692 1,547
Interest income recognized0 0 0 0
Impaired loans with an allowance: | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Recorded investment10,634 10,634 9,252
Unpaid principal balances10,601 10,601 9,215
Valuation allowance2,560 2,560 1,441
Average recorded investment9,718 7,976 9,563 9,491
Interest income recognized0 0 0 0
Impaired loans with an allowance: | Consumer and other
Financing Receivable, Impaired [Line Items]
Recorded investment111 111 983
Unpaid principal balances134 134 1,005
Valuation allowance0 0 328
Average recorded investment221 822 475 548
Interest income recognized0 0 0 0
Impaired loans without an allowance:
Financing Receivable, Impaired [Line Items]
Recorded investment32,535 32,535 38,352
Unpaid principal balances32,567 32,567 38,423
Valuation allowance0 0 0
Average recorded investment37,666 41,699 37,894 39,152
Interest income recognized89 153 176 253
Impaired loans without an allowance: | Commercial real estate - mortgage
Financing Receivable, Impaired [Line Items]
Recorded investment10,332 10,332 14,724
Unpaid principal balances10,341 10,341 14,739
Valuation allowance0 0 0
Average recorded investment13,503 18,493 13,910 17,783
Interest income recognized89 153 176 253
Impaired loans without an allowance: | Consumer real estate - mortgage
Financing Receivable, Impaired [Line Items]
Recorded investment10,885 10,885 7,247
Unpaid principal balances10,909 10,909 7,271
Valuation allowance0 0 0
Average recorded investment10,658 4,805 9,521 4,585
Interest income recognized0 0 0 0
Impaired loans without an allowance: | Construction and land development
Financing Receivable, Impaired [Line Items]
Recorded investment0 0 1,786
Unpaid principal balances0 0 1,786
Valuation allowance0 0 0
Average recorded investment0 0 595 882
Interest income recognized0 0 0 0
Impaired loans without an allowance: | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Recorded investment11,318 11,318 14,595
Unpaid principal balances11,317 11,317 14,627
Valuation allowance0 0 0
Average recorded investment13,505 18,401 13,868 15,902
Interest income recognized0 0 0 0
Impaired loans without an allowance: | Consumer and other
Financing Receivable, Impaired [Line Items]
Recorded investment0 0 0
Unpaid principal balances0 0 0
Valuation allowance0 0 $ 0
Average recorded investment0 0 0 0
Interest income recognized $ 0 $ 0 $ 0 $ 0

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses Loans and Allowance for Loan Losses, Troubled Debt Restructurings (Details) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019USD ($)Jun. 30, 2018USD ($)Jun. 30, 2019USD ($)Jun. 30, 2018USD ($)
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts0 0
Number of contracts3 1 3 1
Pre Modification Outstanding Recorded Investment $ 2,130 $ 38 $ 2,130 $ 38
Post Modification Outstanding Recorded Investment, net of related allowance $ 1,441 $ 38 $ 1,441 $ 38
Commercial real estate - mortgage
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts0 0 0 0
Pre Modification Outstanding Recorded Investment $ 0 $ 0 $ 0 $ 0
Post Modification Outstanding Recorded Investment, net of related allowance $ 0 $ 0 $ 0 $ 0
Consumer real estate - mortgage
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts1 1 1 1
Pre Modification Outstanding Recorded Investment $ 712 $ 38 $ 712 $ 38
Post Modification Outstanding Recorded Investment, net of related allowance $ 626 $ 38 $ 626 $ 38
Construction and land development
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts1 0 1 0
Pre Modification Outstanding Recorded Investment $ 21 $ 0 $ 21 $ 0
Post Modification Outstanding Recorded Investment, net of related allowance $ 19 $ 0 $ 19 $ 0
Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts1 0 1 0
Pre Modification Outstanding Recorded Investment $ 1,397 $ 0 $ 1,397 $ 0
Post Modification Outstanding Recorded Investment, net of related allowance $ 796 $ 0 $ 796 $ 0
Consumer and other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts0 0 0 0
Pre Modification Outstanding Recorded Investment $ 0 $ 0 $ 0 $ 0
Post Modification Outstanding Recorded Investment, net of related allowance $ 0 $ 0 $ 0 $ 0

Loans and Allowance for Loan _8

Loans and Allowance for Loan Losses - Industry Classification System (Details) - USD ($) $ in ThousandsJun. 30, 2019Dec. 31, 2018
Lessors of nonresidential buildings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Principal Balances $ 3,375,085
Unfunded Commitments871,369
Total exposure4,246,454 $ 3,932,059
Lessors of residential buildings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Principal Balances1,003,666
Unfunded Commitments398,766
Total exposure1,402,432 1,484,697
Hotels (except for Casino Hotels) and Motels
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Principal Balances847,103
Unfunded Commitments154,986
Total exposure1,002,089 920,001
236117 New Housing Operative Builders [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Principal Balances508,964
Unfunded Commitments575,435
Total exposure $ 1,084,399 $ 1,100,989

Loans and Allowance for Loan _9

Loans and Allowance for Loan Losses - Financing Receivables Past Due (Details) - USD ($) $ in ThousandsJun. 30, 2019Dec. 31, 2018
Financing Receivable, Past Due [Line Items]
Loans $ 18,814,318 $ 17,707,549
Nonaccrual loans[1]68,904 77,248
Currently performing impaired loans34,800 52,500
Purchased credit impaired, accruing
Financing Receivable, Past Due [Line Items]
Loans12,632 14,743
Purchased credit impaired, nonaccruing
Financing Receivable, Past Due [Line Items]
Nonaccrual loans[1]7,173 10,586
Past due and accruing
Financing Receivable, Past Due [Line Items]
Loans39,987 59,859
30-89 days past due and accruing
Financing Receivable, Past Due [Line Items]
Loans37,254 58,301
90 days or more past due and accruing
Financing Receivable, Past Due [Line Items]
Loans2,733 1,558
Current and Accruing
Financing Receivable, Past Due [Line Items]
Loans18,685,622 17,545,113
Commercial real estate - mortgage
Financing Receivable, Past Due [Line Items]
Loans7,585,393 7,164,954
Commercial real estate - mortgage | Owner-occupied
Financing Receivable, Past Due [Line Items]
Loans2,624,160 2,653,433
Nonaccrual loans[1]11,976 16,025
Commercial real estate - mortgage | Owner-occupied | Purchased credit impaired, accruing
Financing Receivable, Past Due [Line Items]
Loans2,450 2,664
Commercial real estate - mortgage | Owner-occupied | Purchased credit impaired, nonaccruing
Financing Receivable, Past Due [Line Items]
Nonaccrual loans[1]970 874
Commercial real estate - mortgage | Owner-occupied | Past due and accruing
Financing Receivable, Past Due [Line Items]
Loans2,443 10,170
Commercial real estate - mortgage | Owner-occupied | 30-89 days past due and accruing
Financing Receivable, Past Due [Line Items]
Loans2,373 10,170
Commercial real estate - mortgage | Owner-occupied | 90 days or more past due and accruing
Financing Receivable, Past Due [Line Items]
Loans70 0
Commercial real estate - mortgage | Owner-occupied | Current and Accruing
Financing Receivable, Past Due [Line Items]
Loans2,606,321 2,623,700
Commercial real estate - mortgage | All other
Financing Receivable, Past Due [Line Items]
Loans4,961,233 4,511,521
Nonaccrual loans[1]10,828 12,634
Commercial real estate - mortgage | All other | Purchased credit impaired, accruing
Financing Receivable, Past Due [Line Items]
Loans5,070 5,659
Commercial real estate - mortgage | All other | Purchased credit impaired, nonaccruing
Financing Receivable, Past Due [Line Items]
Nonaccrual loans[1]17 2,802
Commercial real estate - mortgage | All other | Past due and accruing
Financing Receivable, Past Due [Line Items]
Loans4,731 1,586
Commercial real estate - mortgage | All other | 30-89 days past due and accruing
Financing Receivable, Past Due [Line Items]
Loans4,731 1,586
Commercial real estate - mortgage | All other | 90 days or more past due and accruing
Financing Receivable, Past Due [Line Items]
Loans0 0
Commercial real estate - mortgage | All other | Current and Accruing
Financing Receivable, Past Due [Line Items]
Loans4,940,587 4,488,840
Consumer real estate - mortgage
Financing Receivable, Past Due [Line Items]
Loans2,949,755 2,844,447
Nonaccrual loans[1]25,501 22,564
Consumer real estate - mortgage | Purchased credit impaired, accruing
Financing Receivable, Past Due [Line Items]
Loans3,406 3,689
Consumer real estate - mortgage | Purchased credit impaired, nonaccruing
Financing Receivable, Past Due [Line Items]
Nonaccrual loans[1]4,396 5,505
Consumer real estate - mortgage | Past due and accruing
Financing Receivable, Past Due [Line Items]
Loans10,823 18,059
Consumer real estate - mortgage | 30-89 days past due and accruing
Financing Receivable, Past Due [Line Items]
Loans10,603 18,059
Consumer real estate - mortgage | 90 days or more past due and accruing
Financing Receivable, Past Due [Line Items]
Loans220 0
Consumer real estate - mortgage | Current and Accruing
Financing Receivable, Past Due [Line Items]
Loans2,905,629 2,794,630
Construction and land development
Financing Receivable, Past Due [Line Items]
Loans2,117,969 2,072,455
Nonaccrual loans[1]605 2,020
Construction and land development | Purchased credit impaired, accruing
Financing Receivable, Past Due [Line Items]
Loans1,421 2,108
Construction and land development | Purchased credit impaired, nonaccruing
Financing Receivable, Past Due [Line Items]
Nonaccrual loans[1]1,790 1,367
Construction and land development | Past due and accruing
Financing Receivable, Past Due [Line Items]
Loans3,469 3,759
Construction and land development | 30-89 days past due and accruing
Financing Receivable, Past Due [Line Items]
Loans3,469 3,759
Construction and land development | 90 days or more past due and accruing
Financing Receivable, Past Due [Line Items]
Loans0 0
Construction and land development | Current and Accruing
Financing Receivable, Past Due [Line Items]
Loans2,110,684 2,063,201
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans5,795,107 5,271,421
Nonaccrual loans[1]19,883 23,022
Commercial and industrial | Purchased credit impaired, accruing
Financing Receivable, Past Due [Line Items]
Loans285 623
Commercial and industrial | Purchased credit impaired, nonaccruing
Financing Receivable, Past Due [Line Items]
Nonaccrual loans[1]0 38
Commercial and industrial | Past due and accruing
Financing Receivable, Past Due [Line Items]
Loans12,957 22,533
Commercial and industrial | 30-89 days past due and accruing
Financing Receivable, Past Due [Line Items]
Loans11,420 21,451
Commercial and industrial | 90 days or more past due and accruing
Financing Receivable, Past Due [Line Items]
Loans1,537 1,082
Commercial and industrial | Current and Accruing
Financing Receivable, Past Due [Line Items]
Loans5,761,982 5,225,205
Consumer and other
Financing Receivable, Past Due [Line Items]
Loans366,094 354,272
Nonaccrual loans[1]111 983
Consumer and other | Purchased credit impaired, accruing
Financing Receivable, Past Due [Line Items]
Loans0 0
Consumer and other | Purchased credit impaired, nonaccruing
Financing Receivable, Past Due [Line Items]
Nonaccrual loans[1]0 0
Consumer and other | Past due and accruing
Financing Receivable, Past Due [Line Items]
Loans5,564 3,752
Consumer and other | 30-89 days past due and accruing
Financing Receivable, Past Due [Line Items]
Loans4,658 3,276
Consumer and other | 90 days or more past due and accruing
Financing Receivable, Past Due [Line Items]
Loans906 476
Consumer and other | Current and Accruing
Financing Receivable, Past Due [Line Items]
Loans $ 360,419 $ 349,537
[1]Approximately $34.8 million and $52.5 million of nonaccrual loans as of June 30, 2019 and December 31, 2018 , respectively, were performing pursuant to their contractual terms at those dates .

Loans and Allowance for Loan_10

Loans and Allowance for Loan Losses - Allowance Allocation (Details) - USD ($)Jun. 30, 2019Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Allowance for Loan Losses $ 90,253,000 $ 83,575,000
Troubled debt restructurings performing as of restructure date7,400,000 5,900,000
Troubled Debt Restructurings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Allowance for Loan Losses $ 900,000 $ 0

Loans and Allowance for Loan_11

Loans and Allowance for Loan Losses - Allowance for Credit Losses (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance $ 87,194 $ 70,204 $ 83,575 $ 67,240
Charged-off loans(8,480)(6,698)(14,548)(15,367)
Recovery of previously charged-off loans4,344 2,762 6,847 7,464
Provision for loan losses7,195 9,402 14,379 16,333
Ending Balance90,253 75,670 90,253 75,670
Commercial real estate - mortgage
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance30,167 22,688 26,946 21,188
Charged-off loans(1,065)(234)(1,599)(962)
Recovery of previously charged-off loans892 58 964 1,454
Provision for loan losses832 2,336 4,515 3,168
Ending Balance30,826 24,848 30,826 24,848
Consumer real estate - mortgage
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance8,369 5,100 7,670 5,031
Charged-off loans(580)(935)(930)(1,271)
Recovery of previously charged-off loans372 537 741 1,203
Provision for loan losses328 1,151 1,008 890
Ending Balance8,489 5,853 8,489 5,853
Construction and land development
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance10,915 10,116 11,128 8,962
Charged-off loans(4)(10)(4)(12)
Recovery of previously charged-off loans19 1,010 141 1,575
Provision for loan losses276 (132)(59)459
Ending Balance11,206 10,984 11,206 10,984
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance32,699 26,648 31,731 24,863
Charged-off loans(5,408)(1,724)(8,760)(4,264)
Recovery of previously charged-off loans2,744 567 4,342 1,455
Provision for loan losses7,401 2,847 10,123 6,284
Ending Balance37,436 28,338 37,436 28,338
Consumer and other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance4,803 5,476 5,423 5,874
Charged-off loans(1,423)(3,795)(3,255)(8,858)
Recovery of previously charged-off loans317 590 659 1,777
Provision for loan losses(1,583)2,901 (713)6,379
Ending Balance2,114 5,172 2,114 5,172
Unallocated
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance241 176 677 1,322
Charged-off loans0 0 0 0
Recovery of previously charged-off loans0 0 0 0
Provision for loan losses(59)299 (495)(847)
Ending Balance $ 182 $ 475 $ 182 $ 475

Loans and Allowance for Loan_12

Loans and Allowance for Loan Losses - Details on Allowance for Loan Losses and Recorded Investment by Loan Classification and Impairment Evaluation Method (Details) - USD ($) $ in ThousandsJun. 30, 2019Mar. 31, 2019Dec. 31, 2018Jun. 30, 2018Mar. 31, 2018Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment $ 84,542 $ 78,934
Individually evaluated for impairment5,529 3,964
Total allowance for loan losses90,253 $ 87,194 83,575 $ 75,670 $ 70,204 $ 67,240
Collectively evaluated for impairment18,718,198 17,599,074
Individually evaluated for impairment76,315 83,146
Loans18,814,318 17,707,549
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 quality19,805 25,329
Commercial real estate - mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment30,048 26,222
Individually evaluated for impairment778 724
Total allowance for loan losses30,826 30,167 26,946 24,848 22,688 21,188
Collectively evaluated for impairment7,553,915 7,124,117
Individually evaluated for impairment22,971 28,838
Loans7,585,393 7,164,954
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 quality8,507 11,999
Consumer real estate - mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment6,341 6,227
Individually evaluated for impairment2,148 1,443
Total allowance for loan losses8,489 8,369 7,670 5,853 5,100 5,031
Collectively evaluated for impairment2,911,298 2,808,142
Individually evaluated for impairment30,655 27,111
Loans2,949,755 2,844,447
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 quality7,802 9,194
Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment11,163 11,100
Individually evaluated for impairment43 28
Total allowance for loan losses11,206 10,915 11,128 10,984 10,116 8,962
Collectively evaluated for impairment2,114,132 2,066,613
Individually evaluated for impairment626 2,367
Loans2,117,969 2,072,455
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 quality3,211 3,475
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment34,876 30,290
Individually evaluated for impairment2,560 1,441
Total allowance for loan losses37,436 32,699 31,731 28,338 26,648 24,863
Collectively evaluated for impairment5,772,870 5,246,913
Individually evaluated for impairment21,952 23,847
Loans5,795,107 5,271,421
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 quality285 661
Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment2,114 5,095
Individually evaluated for impairment0 328
Total allowance for loan losses2,114 4,803 5,423 5,172 5,476 5,874
Collectively evaluated for impairment365,983 353,289
Individually evaluated for impairment111 983
Loans366,094 354,272
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 quality0 0
Unallocated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment
Individually evaluated for impairment
Total allowance for loan losses182 $ 241 677 $ 475 $ 176 $ 1,322
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 ($)3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Income Tax Disclosure [Abstract]
Unrecognized tax benefits $ 5,100,000 $ 5,100,000
Interest and penalties $ 0 $ 0
Effective income tax rate (as percent)19.60%20.90%19.60%20.00%
Federal and State income tax statutory rate (as percent)26.14%26.14%
Excess tax benefit $ 68,000 $ (72,000) $ (701,000) $ (2,800,000)

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions6 Months Ended12 Months Ended
Jun. 30, 2019Dec. 31, 2018
Loss Contingencies [Line Items]
Expiry period of standby letter of credit, maximum2 years
Accrual for inherent risks associated with commitments $ 2.4 $ 2.9
Commitments
Loss Contingencies [Line Items]
Amount of commitment7,600
Home Equity Line of Credit
Loss Contingencies [Line Items]
Amount of commitment1,000
Standby letter of credit
Loss Contingencies [Line Items]
Amount of commitment $ 198.9

Stock Options and Restricted _3

Stock Options and Restricted Shares - Narrative (Details) - USD ($) $ in ThousandsJul. 31, 2015Jun. 30, 2019Mar. 31, 2019Jun. 30, 2018Mar. 31, 2018Jun. 30, 2019Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense $ 5,160 $ 4,913 $ 4,303 $ 4,448 $ 10,073 $ 8,751
Remaining Share-Based Compensation on Unvested Restricted Stock Awards $ 44,700 $ 44,700
Weighted Average Remaining Period of Sharebased Compensation Expense1 year 7 months 20 days
2018 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuances (in shares)1,300,000 1,300,000
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)8,000 8,000
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 0
CapitalMark Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuances (in shares)0 0
Shares acquired in period (in shares)858,000

Stock Options and Restricted _4

Stock Options and Restricted Shares - Common Stock Options (Details) - Common stock options $ / shares in Units, $ in Thousands6 Months Ended12 Months Ended
Jun. 30, 2019USD ($)$ / sharessharesDec. 31, 2018USD ($)$ / sharesshares
Number
Outstanding, beginning balance (in shares)176,709
Granted (in shares)0
Exercised (in shares)(5,600)
Forfeited (in shares)0
Outstanding, ending balance (in shares)171,109 176,709
Weighted-Average Exercise Price
Outstanding, beginning balance (in dollars per share) | $ / shares $ 22.77
Outstanding, ending balance (in dollars per share) | $ / shares $ 22.70 $ 22.77
Additional disclosures
Options exercisable (in shares)171,109
Weighted- average exercise price of options exercisable (in dollars per share) | $ / shares $ 22.70
Weighted-average contractual remaining term for options outstanding2 years 9 months 21 days2 years 2 months 23 days
Weighted-average contractual remaining term for options exercisable2 years 9 months 21 days
Aggregate intrinsic value | $ $ 5,951 [1] $ 4,123 [2]
Aggregate intrinsic value of options exercisable | $ $ 5,951 [1]
Quoted closing price of common stock (in dollars per share) | $ / shares $ 57.48 $ 46.10
Number of awards used in aggregate intrinsic value (in shares)171,109 176,709
[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 $57.48 per common share at June 30, 2019 for the 171,109 options that were in-the-money at June 30, 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 stock6 Months Ended
Jun. 30, 2019$ / sharesshares
Number
Unvested, beginning of period (in shares)692,806
Shares awarded (in shares)209,220
Restrictions lapsed and shares released to associates/directors (in shares)(261,061)
Shares forfeited (in shares)(19,211)[1]
Unvested, end of period (in shares)621,754
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 $ 56.99
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)6 Months Ended
Jun. 30, 2019shares
Time Based Awards | Associates
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares awarded192,671 [1],[2]
Restrictions Lapsed and shares released to participants224 [1],[2]
Shares Forfeited by participants5,124 [1],[2],[3]
Shares Unvested187,323 [1],[2]
Time Based Awards | Associates | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Period in years3 years
Time Based Awards | Associates | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Period in years5 years
Outside Director Awards | Outside directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Period in years1 year[1],[4]
Shares awarded16,549 [1],[4]
Restrictions Lapsed and shares released to participants0 [1],[4]
Shares Forfeited by participants0 [1],[3],[4]
Shares Unvested16,549 [1],[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 was terminated during the year-to-date period ended June 30, 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)6 Months Ended
Jun. 30, 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) - USD ($) $ in Thousands3 Months Ended6 Months Ended12 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018Dec. 31, 2018
Derivative [Line Items]
Gain on cash flow hedges reclassified from other comprehensive income into net income, net of tax $ 73 $ (143) $ (183) $ (284)
Not Designated as Hedging Instrument
Derivative [Line Items]
Description of Location of Gain (Loss) on Interest Rate Derivative on Income StatementOther noninterest incomeOther noninterest incomeOther noninterest incomeOther noninterest income
Derivative, Gain (Loss) on Derivative, Net $ (89) $ (14) $ (102) $ (34)
Notional Amount2,265,708 2,265,708 $ 2,119,448
Estimated Fair Value(230) $ (230) $ (128)
Not Designated as Hedging Instrument | Assets
Derivative [Line Items]
Description of Location of Interest Rate Derivatives on Balance SheetOther assetsOther assets
Notional Amount1,132,854 $ 1,132,854 $ 1,059,724
Estimated Fair Value41,659 $ 41,659 $ 22,273
Not Designated as Hedging Instrument | Liabilities
Derivative [Line Items]
Description of Location of Interest Rate Derivatives on Balance SheetOther liabilitiesOther liabilities
Notional Amount1,132,854 $ 1,132,854 $ 1,059,724
Estimated Fair Value $ (41,889) $ (41,889) $ (22,401)

Derivative Instruments - Hedge

Derivative Instruments - Hedge Derivatives (Details) - USD ($)3 Months Ended6 Months Ended12 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018Dec. 31, 2018
Derivative [Line Items]
Closed Portfolio and Beneficial Interest, Last-of-Layer, Amortized Cost $ 2,700,000,000
Not Designated as Hedging Instrument
Derivative [Line Items]
Description of Location of Gain (Loss) on Interest Rate Derivative on Income StatementOther noninterest incomeOther noninterest incomeOther noninterest incomeOther noninterest income
Derivative, Gain (Loss) on Derivative, Net $ (89,000) $ (14,000) $ (102,000) $ (34,000)
Hedging derivative | Cash flow hedge
Derivative [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) $ 6,944,000 950,000 $ 6,421,000 2,670,000
Hedging derivative | Fair value hedge
Derivative [Line Items]
Weighted Average Remaining Maturity7 years 6 months 18 days
Pay Rate (as percent)3.08%3.08%
Forecasted Notional Amount $ 477,905,000 $ 477,905,000 1,377,905,000
Fair Value Hedge Assets $ (41,039,000) $ (41,039,000)(21,833,000)
Hedging derivative | Fair value hedge | Securities
Derivative [Line Items]
Weighted Average Remaining Maturity7 years 6 months 18 days
Pay Rate (as percent)3.08%3.08%
Receive Rate3 month LIBOR
Forecasted Notional Amount $ 477,905,000 $ 477,905,000 477,905,000
Fair Value Hedge Assets(41,039,000)(41,039,000)(14,796,000)
Derivative Instruments and Hedges, Assets513,052,000 513,052,000 515,063,000
Fair Value Hedging Adjustment41,039,000 $ 41,039,000 14,796,000
Description of Location of Gain (Loss) on Interest Rate Derivative on Income StatementInterest income on securities
Description of Location of Interest Rate Fair Value Hedge Derivative on Balance SheetOther liabilities
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge15,963,000 1,343,000 $ 26,243,000 (236,000)
Gain (Loss) on Fair Value Hedges Recognized in Earnings(15,963,000)(1,343,000)(26,243,000)236,000
Hedging derivative | Fair value hedge | Loans
Derivative [Line Items]
Forecasted Notional Amount0 0 900,000,000
Fair Value Hedge Assets0 0 (7,037,000)
Derivative Instruments and Hedges, Assets[1]0 0 907,037,000
Fair Value Hedging Adjustment[1]0 $ 0 $ 7,037,000
Description of Location of Gain (Loss) on Interest Rate Derivative on Income StatementInterest income on loans
Description of Location of Interest Rate Fair Value Hedge Derivative on Balance SheetOther liabilities
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge2,061,000 (1,122,000) $ 6,915,000 (1,122,000)
Gain (Loss) on Fair Value Hedges Recognized in Earnings(2,061,000)1,122,000 (6,915,000)1,122,000
Swap termination payment14,000,000
Fair value hedging adjustment14,000,000 14,000,000
Amortization expense, reduction to interest income on loans445,000 $ 445,000
Pay fixed and receive variable swaps | Not Designated as Hedging Instrument
Derivative [Line Items]
Description of Location of Interest Rate Derivatives on Balance SheetOther assetsOther assets
Pay variable and receive fixed swaps | Not Designated as Hedging Instrument
Derivative [Line Items]
Description of Location of Interest Rate Derivatives on Balance SheetOther liabilitiesOther liabilities
Asset derivatives | Hedging derivative | Cash flow hedge
Derivative [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) $ 7,924,000 0 $ 7,924,000 0
Description of Location of Interest Rate Derivatives on Balance SheetOther assets
Weighted Average Remaining Maturity2 years 4 months 2 days
Pay Rate (as percent)0.00%0.00%
Receive Rate2.75% minus 1 month LIBOR
Forecasted Notional Amount $ 1,300,000,000 $ 1,300,000,000 $ 0
Cash Flow Hedges Derivative Instruments at Fair Value, Net34,428,000 34,428,000 0
Liability derivatives | Hedging derivative | Cash flow hedge
Derivative [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) $ (980,000) $ 950,000 $ (1,503,000) $ 2,670,000
Description of Location of Interest Rate Derivatives on Balance SheetOther liabilities
Weighted Average Remaining Maturity2 years 10 months 6 days
Pay Rate (as percent)3.09%3.09%
Receive Rate3 month LIBOR
Forecasted Notional Amount $ 99,000,000 $ 99,000,000 99,000,000
Cash Flow Hedges Derivative Instruments at Fair Value, Net $ (3,793,000) $ (3,793,000) $ (1,757,000)
[1]The carrying amount as shown represents the designated last-of-layer. At 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 Thousands6 Months Ended12 Months Ended
Jun. 30, 2019Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Abstract]
Valuation allowance $ 5,529 $ 3,964
Recurring
Assets, Fair Value Disclosure [Abstract]
U.S. Treasury securities48,917 30,300
U.S. government agency securities55,023 70,159
Mortgage-backed securities1,291,913 1,310,945
State and municipal securities1,636,502 1,229,654
Agency-backed securities169,423 375,582
Corporate notes and other55,128 67,046
Total investment securities available-for-sale3,256,906 3,083,686
Other Investments56,573 50,791
Other assets79,776 24,524
Total assets at fair value3,393,255 3,159,001
Liabilities at fair value: [Abstract]
Other liabilities87,276 46,550
Total liabilities at fair value87,276 46,550
Recurring | Quoted market prices in an active market (Level 1)
Assets, Fair Value Disclosure [Abstract]
U.S. Treasury securities0 0
U.S. government agency securities0 0
Mortgage-backed securities0 0
State and municipal securities0 0
Agency-backed securities0 0
Corporate notes and other0 0
Total investment securities available-for-sale0 0
Other Investments0 0
Other assets0 0
Total assets at fair value0 0
Liabilities at fair value: [Abstract]
Other liabilities0 0
Total liabilities at fair value0 0
Recurring | Models with significant observable market parameters (Level 2)
Assets, Fair Value Disclosure [Abstract]
U.S. Treasury securities48,917 30,300
U.S. government agency securities55,023 70,159
Mortgage-backed securities1,291,913 1,310,945
State and municipal securities1,621,239 1,215,059
Agency-backed securities169,423 375,582
Corporate notes and other55,128 67,046
Total investment securities available-for-sale3,241,643 3,069,091
Other Investments25,050 24,369
Other assets79,776 24,524
Total assets at fair value3,346,469 3,117,984
Liabilities at fair value: [Abstract]
Other liabilities87,276 46,550
Total liabilities at fair value87,276 46,550
Recurring | Models with significant unobservable market parameters (Level 3)
Assets, Fair Value Disclosure [Abstract]
U.S. Treasury securities0 0
U.S. government agency securities0 0
Mortgage-backed securities0 0
State and municipal securities15,263 14,595
Agency-backed securities0 0
Corporate notes and other0 0
Total investment securities available-for-sale15,263 14,595
Other Investments31,523 26,422
Other assets0 0
Total assets at fair value46,786 41,017
Liabilities at fair value: [Abstract]
Other liabilities0 0
Total liabilities at fair value0 0
Nonrecurring
Assets, Fair Value Disclosure [Abstract]
Total assets at fair value64,908 55,995
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Abstract]
Impaired Financing Receivable, with Related Allowance, Recorded Investment[1]38,251 40,830
Other real estate owned26,657 15,165
Gain (Loss) on Other real estate owned(2,438)(84)
Total losses on impaired loans, net(5,228)[1](1,214)
Gain Loss On assets(7,666)(1,298)
Nonrecurring | Quoted market prices in an active market (Level 1)
Assets, Fair Value Disclosure [Abstract]
Total assets at fair value0 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 owned0 0
Nonrecurring | Models with significant observable market parameters (Level 2)
Assets, Fair Value Disclosure [Abstract]
Total assets at fair value0 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 owned0 0
Nonrecurring | Models with significant unobservable market parameters (Level 3)
Assets, Fair Value Disclosure [Abstract]
Total assets at fair value64,908 55,995
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Abstract]
Impaired Financing Receivable, with Related Allowance, Recorded Investment[1]38,251 40,830
Other real estate owned $ 26,657 $ 15,165
[1]Amount is net of valuation allowance of $5.5 million and $4.0 million at June 30, 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) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward]
Transfers out of Level 3 $ 0
Recurring | Other assets
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward]
Fair value, beginning of period $ 28,107 $ 29,788 26,422 $ 28,874
Total realized gains included in income481 2,265 929 2,777
Changes in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at period-end0 0 0 0
Purchases3,518 3,948 5,188 4,818
Issuances0 0 0 0
Settlements584 257 1,017 725
Transfers out of Level 30 (12,166)0 (12,166)
Fair value, end of period31,522 23,578 31,522 23,578
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at period-end481 2,265 929 2,777
Recurring | Available-for-sale Securities
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward]
Fair value, beginning of period13,730 15,226 14,595 17,029
Total realized gains included in income29 30 59 60
Changes in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at period-end1,504 34 1,008 (631)
Purchases0 0 0 0
Issuances0 0 0 0
Settlements0 0 (399)(1,168)
Transfers out of Level 30 0 0 0
Fair value, end of period15,263 15,290 15,263 15,290
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at period-end $ 29 $ 30 $ 59 $ 60

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in ThousandsJun. 30, 2019Dec. 31, 2018
Financial assets:
Securities held-to-maturity $ 200,566 $ 193,131
Quoted market prices in an active market (Level 1)
Financial assets:
Securities held-to-maturity0 0
Loans, net0 0
Consumer loans held-for-sale0 0
Commercial loans held-for-sale0 0
Financial liabilities:
Deposits and securities sold under agreements to repurchase0 0
Federal Home Loan Bank advances0 0
Subordinated debt and other borrowings0 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-maturity200,566 193,131
Loans, net0 0
Consumer loans held-for-sale71,108 34,929
Commercial loans held-for-sale21,631 16,296
Financial liabilities:
Deposits and securities sold under agreements to repurchase0 0
Federal Home Loan Bank advances0 0
Subordinated debt and other borrowings0 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-maturity0 0
Loans, net18,644,090 17,288,795
Consumer loans held-for-sale0 0
Commercial loans held-for-sale0 0
Financial liabilities:
Deposits and securities sold under agreements to repurchase18,966,437 18,337,848
Federal Home Loan Bank advances1,965,111 1,432,003
Subordinated debt and other borrowings446,951 464,616
Off-balance sheet instruments:
Commitments to extend credit[1]1,083 1,733
Standby letters of credit[2]1,281 1,100
Carrying/ Notional Amount
Financial assets:
Securities held-to-maturity190,928 194,282
Loans, net18,724,065 17,623,974
Consumer loans held-for-sale70,004 34,196
Commercial loans held-for-sale21,295 15,954
Financial liabilities:
Deposits and securities sold under agreements to repurchase19,603,552 18,953,848
Federal Home Loan Bank advances1,960,062 1,443,589
Subordinated debt and other borrowings464,144 485,130
Off-balance sheet instruments:
Commitments to extend credit[1]7,582,092 6,921,689
Standby letters of credit[2]198,945 177,475
Estimated Fair Value
Financial assets:
Securities held-to-maturity[3]200,566 193,131
Loans, net[3]18,644,090 17,288,795
Consumer loans held-for-sale[3]71,108 34,929
Commercial loans held-for-sale[3]21,631 16,296
Financial liabilities:
Deposits and securities sold under agreements to repurchase[3]18,966,437 18,337,848
Federal Home Loan Bank advances[3]1,965,111 1,432,003
Subordinated debt and other borrowings[3]446,951 464,616
Off-balance sheet instruments:
Commitments to extend credit[1],[3]1,083 1,733
Standby letters of credit[2],[3] $ 1,281 $ 1,131
[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 June 30, 2019 and December 31, 2018 , Pinnacle Financial included in other liabilities $1.1 million and $1.7 million, respectively, representing the inherent risks associated with these off-balance sheet commitments.
[2]At June 30, 2019 and December 31, 2018 , the aggregate fair value of Pinnacle Financial's standby letters of credit was $1.3 million and $1.1 million, respectively. 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.

Regulatory Matters (Details)

Regulatory Matters (Details) - USD ($) $ / shares in Units, $ in Thousands6 Months Ended
Jun. 30, 2019Dec. 31, 2018
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Preceding period of retained earnings used in calculation of dividend payable2 years
Retained earnings $ 1,002,434 $ 833,130
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 $ 78,700
Actual
Total capital to risk weighted assets2,729,341 2,580,143
Tier I capital to risk weighted assets2,168,431 2,024,193
Common Equity Tier I capital to risk weighted assets2,168,308 2,024,070
Tier I capital to average assets[1] $ 2,168,431 $ 2,024,193
Actual
Total capital to risk weighted assets (as percent)12.00%12.20%
Tier I capital to risk weighted assets (as percent)9.50%9.60%
Common Equity Tier I capital to risk weighted assets (as percent)9.50%9.60%
Tier I capital to average assets (as percent)[1]9.10%8.90%
Minimum Capital Requirement
Total capital to risk weighted assets $ 1,821,607 $ 1,691,017
Tier I capital to risk weighted assets1,366,205 1,268,263
Common Equity Tier I capital1,024,654 951,197
Tier I capital to average assets[1] $ 957,546 $ 909,102
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 $ 608,900
Actual
Total capital to risk weighted assets2,563,617 $ 2,432,419
Tier I capital to risk weighted assets2,342,892 2,218,003
Common Equity Tier I capital to risk weighted assets2,342,770 2,217,880
Tier I capital to average assets[1] $ 2,342,892 $ 2,218,003
Actual
Total capital to risk weighted assets (as percent)11.30%11.50%
Tier I capital to risk weighted assets (as percent)10.30%10.50%
Common Equity Tier I capital to risk weighted assets (as percent)10.30%10.50%
Tier I capital to average assets (as percent)[1]9.80%9.80%
Minimum Capital Requirement
Total capital to risk weighted assets $ 1,816,521 $ 1,686,046
Tier I capital to risk weighted assets1,362,391 1,264,535
Common Equity Tier I capital1,021,793 948,401
Tier I capital to average assets[1] $ 955,401 $ 906,185
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 $ 2,270,651 $ 2,107,558
Tier I capital to risk weighted assets1,816,521 1,686,046
Common Equity Tier I capital to risk weighted assets1,475,923 1,369,912
Tier I capital to average assets[1] $ 1,194,252 $ 1,132,731
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)6 Months Ended
Jun. 30, 2019USD ($)subsidiaryDec. 31, 2018USD ($)
Debt Instrument [Line Items]
Number of wholly owned subsidiaries | subsidiary12
Term30 years
Total Debt Outstanding $ 464,144,000 $ 485,130,000
Debt issuance costs and fair value adjustments $ (7,691,000)
Unused fee, percentage0.30%
Revolving credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity $ 75,000,000
Date EstablishedApr. 25,
2019
MaturityApr. 24,
2020
Total Debt Outstanding[1] $ 0
Interest Rate (as percent)[1]3.94%
Debt instrument, basis spread on variable rate (as percent)[2]1.50%
Coupon Structure[2]30-day LIBOR + 1.50%
Line of credit outstanding $ 0
Pinnacle Statutory Trust I
Debt Instrument [Line Items]
Date EstablishedDec. 29,
2003
MaturityDec. 30,
2033
Total Debt Outstanding $ 10,310,000
Interest Rate (as percent)5.21%
Coupon Structure30-day LIBOR + 2.80%
Pinnacle Statutory Trust II
Debt Instrument [Line Items]
Date EstablishedSep. 15,
2005
MaturitySep. 30,
2035
Total Debt Outstanding $ 20,619,000
Interest Rate (as percent)3.72%
Coupon Structure30-day LIBOR + 1.40%
Pinnacle Statutory Trust III
Debt Instrument [Line Items]
Date EstablishedSep. 7,
2006
MaturitySep. 30,
2036
Total Debt Outstanding $ 20,619,000
Interest Rate (as percent)3.97%
Coupon Structure30-day LIBOR + 1.65%
Pinnacle Statutory Trust IV
Debt Instrument [Line Items]
Date EstablishedOct. 31,
2007
MaturitySep. 30,
2037
Total Debt Outstanding $ 30,928,000
Interest Rate (as percent)5.26%
Coupon Structure30-day LIBOR + 2.85%
BNC Capital Trust I
Debt Instrument [Line Items]
Date EstablishedApr. 3,
2003
MaturityApr. 15,
2033
Total Debt Outstanding $ 5,155,000
Interest Rate (as percent)5.85%
Coupon Structure30-day LIBOR + 3.25%
BNC Capital Trust II
Debt Instrument [Line Items]
Date EstablishedMar. 11,
2004
MaturityApr. 7,
2034
Total Debt Outstanding $ 6,186,000
Interest Rate (as percent)5.45%
Coupon Structure30-day LIBOR + 2.85%
BNC Capital Trust III
Debt Instrument [Line Items]
Date EstablishedSep. 23,
2004
MaturitySep. 23,
2034
Total Debt Outstanding $ 5,155,000
Interest Rate (as percent)5.00%
Coupon Structure30-day LIBOR + 2.40%
BNC Capital Trust IV
Debt Instrument [Line Items]
Date EstablishedSep. 27,
2006
MaturityDec. 31,
2036
Total Debt Outstanding $ 7,217,000
Interest Rate (as percent)4.02%
Coupon Structure30-day LIBOR + 1.70%
Valley Financial Trust I
Debt Instrument [Line Items]
Date EstablishedJun. 26,
2003
MaturityJun. 26,
2033
Total Debt Outstanding $ 4,124,000
Interest Rate (as percent)5.43%
Coupon Structure30-day LIBOR + 3.10%
Valley Financial Trust II
Debt Instrument [Line Items]
Date EstablishedSep. 26,
2005
MaturityDec. 15,
2035
Total Debt Outstanding $ 7,217,000
Interest Rate (as percent)3.90%
Coupon Structure30-day LIBOR + 1.49%
Valley Financial Trust III
Debt Instrument [Line Items]
Date EstablishedDec. 15,
2006
MaturityJan. 30,
2037
Total Debt Outstanding $ 5,155,000
Interest Rate (as percent)4.31%
Coupon Structure30-day LIBOR + 1.73%
Southcoast Capital Trust III
Debt Instrument [Line Items]
Date EstablishedAug. 5,
2005
MaturitySep. 30,
2035
Total Debt Outstanding $ 10,310,000
Interest Rate (as percent)3.82%
Coupon Structure30-day LIBOR + 1.50%
Pinnacle Bank Subordinated Notes (2015)
Debt Instrument [Line Items]
Date EstablishedJul. 30,
2015
MaturityJul. 30,
2025
Total Debt Outstanding[3] $ 60,000,000
Interest Rate (as percent)[3]4.88%
Debt instrument, basis spread on variable rate (as percent)3.128%
Debt instrument, term of variable rate3 months
Coupon StructureLIBOR + 3.128%
Pinnacle Bank Subordinated Notes
Debt Instrument [Line Items]
Date EstablishedMar. 10,
2016
MaturityJul. 30,
2025
Total Debt Outstanding[3] $ 70,000,000
Interest Rate (as percent)[3]4.88%
Debt instrument, basis spread on variable rate (as percent)3.128%
Debt instrument, term of variable rate3 months
Coupon StructureLIBOR + 3.128%
Avenue Subordinated Notes
Debt Instrument [Line Items]
Date EstablishedDec. 29,
2014
MaturityDec. 29,
2024
Total Debt Outstanding[4] $ 20,000,000
Interest Rate (as percent)[4]6.75%
Debt instrument, basis spread on variable rate (as percent)4.95%
Debt instrument, term of variable rate3 months
Coupon StructureLIBOR + 4.95%
Pinnacle Financial Subordinated Notes
Debt Instrument [Line Items]
Date EstablishedNov. 16,
2016
MaturityNov. 16,
2026
Total Debt Outstanding[5] $ 120,000,000
Interest Rate (as percent)[5]5.25%
Debt instrument, basis spread on variable rate (as percent)3.884%
Debt instrument, term of variable rate3 months
Coupon StructureLIBOR + 3.884%
BNC Subordinated Notes
Debt Instrument [Line Items]
Date EstablishedSep. 25,
2014
MaturityOct. 1,
2024
Total Debt Outstanding[6] $ 60,000,000
Interest Rate (as percent)[6]5.50%
Debt instrument, basis spread on variable rate (as percent)3.59%
Debt instrument, term of variable rate3 months
Coupon StructureLIBOR + 3.59%
Townebank Subordinated Notes
Debt Instrument [Line Items]
Date EstablishedOct. 15,
2013
MaturityOct. 15,
2023
Total Debt Outstanding[2] $ 8,840,000
Interest Rate (as percent)[2]7.44%
Debt instrument, basis spread on variable rate (as percent)[2]5.00%
Coupon Structure[2]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 June 30, 2019 , there were no amounts outstanding under this facility. An unused fee of 0.30% is assessed on the average daily unused amount of the loan.
[2]Coupon structure includes a floor of 5.5% and a cap of 9.5%
[3]Migrates to three month LIBOR + 3.128% beginning July 30, 2020 through the end of the term.
[4]Migrates to three month LIBOR + 4.95% beginning January 1, 2020 through the end of the term.
[5]Migrates to three month LIBOR + 3.884% beginning November 16, 2021 through the end of the term.
[6]Migrates to three month LIBOR + 3.59% beginning October 1, 2019 through the end of the term if not redeemed on that date.

Leases Schedule of Leases Asset

Leases Schedule of Leases Assets and Liabilities (Details) $ in ThousandsJun. 30, 2019USD ($)
Right-of-use assets
Operating leases (1) $ 72,719 [1]
Finance leases2,100
Total right-of-use assets74,819
Lease liabilities
Operating leases80,697
Finance leases3,359
Total lease liabilities84,056
Tenant improvements allowances1,700
Purchase accounting fair value adjustments $ 2,800
Operating Lease, Weighted Average Remaining Lease Term10 years 7 months 6 days
Finance Lease, Weighted Average Remaining Lease Term9 years 3 months 29 days
Operating Lease, Weighted Average Discount Rate, Percent3.34%
Finance Lease, Weighted Average Discount Rate, Percent7.22%
[1]Presented net of tenant improvement allowances of $1.7 million and purchase accounting fair value adjustments of $2.8 million .

Leases Lease Costs and Other In

Leases Lease Costs and Other Information (Details) - USD ($)3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Lease, Cost [Abstract]
Operating lease cost $ 3,532,000 $ 6,972,000
Short-term lease cost14,000 28,000
Interest on lease liabilities61,000 123,000
Amortization of right-of-use asset(57,000)(113,000)
Sublease income(312,000)(561,000)
Net lease cost3,352,000 6,675,000
Rent expense related to leases $ 3,100,000 $ 6,300,000
Operating cash flows related to operating leases3,380,000 6,761,000
Operating cash flows related to finance leases(61,000)(123,000)
Financing cash flows related to finance leases $ 57,000 $ 112,000

Leases Schedule of leases both

Leases Schedule of leases both operating and finance (Details) $ in ThousandsJun. 30, 2019USD ($)
Operating Leases
2019 $ 6,776
202012,538
202112,110
20229,725
20238,874
Thereafter48,305
Total98,328
Less: Imputed interest(17,631)
Total lease liabilities80,697
Finance Leases
2019235
2020470
2021470
2022470
2023479
Thereafter2,548
Total4,672
Less: Imputed interest(1,313)
Total lease liabilities $ 3,359

Leases Schedule of leases bot_2

Leases Schedule of leases both operating and capital (Details) $ in ThousandsDec. 31, 2018USD ($)
Leases, Operating [Abstract]
2019 $ 12,889
202011,805
202111,527
20229,410
20238,820
Thereafter43,730
Future minimum lease payments98,181
Leases, Capital [Abstract]
2019470
2020470
2021470
2022470
2023479
Thereafter2,548
Future minimum lease payments4,907
Less: Imputed interest1,437
Total capital lease liabilities $ 3,470