Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 22, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Auditor Name | Crowe LLP | ||
Auditor Location | Denver, Colorado | ||
Auditor Firm ID | 173 | ||
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2023 | ||
Entity File Number | 000-31225 | ||
Entity Registrant Name | Pinnacle Financial Partners Inc. | ||
Entity Tax Identification Number | 62-1812853 | ||
Entity Central Index Key | 0001115055 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 4,267,838,784 | ||
Entity Common Stock, Shares Outstanding | 76,939,919 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Incorporation, State or Country Code | TN | ||
Entity Address, Address Line One | 150 Third Avenue South, Suite 900, | ||
Entity Address, City or Town | Nashville, | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 37201 | ||
City Area Code | (615) | ||
Local Phone Number | 744-3700 | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Common Class A | |||
Cover [Abstract] | |||
Title of 12(b) Security | Common Stock, par value $1.00 | ||
Trading Symbol | PNFP | ||
Security Exchange Name | NASDAQ | ||
Noncumulative Preferred Stock | |||
Cover [Abstract] | |||
Title of 12(b) Security | Depositary Shares (each representing 1/40th interest in a share of 6.75% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series B) | ||
Trading Symbol | PNFPP | ||
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets [Abstract] | ||
Cash and noninterest-bearing due from banks | $ 228,620 | $ 268,649 |
Restricted cash | 86,873 | 31,447 |
Interest-bearing due from banks | 1,914,856 | 877,286 |
Cash and cash equivalents | 2,230,349 | 1,177,382 |
Securities Purchased under Agreements to Resell | 558,009 | 513,276 |
Securities available-for-sale, at fair value | 4,317,530 | 3,558,870 |
Securities held-to-maturity (fair value of $2.8 billion and $2.7 billion, net of allowance for credit losses of $1.7 million and $1.6 million at Dec. 31, 2023 and 2022, respectively) | 3,006,357 | 3,079,050 |
Consumer loans held-for-sale | 104,217 | 42,237 |
Commercial loans held-for-sale | 9,280 | 21,093 |
Loans | 32,676,091 | 29,041,605 |
Less allowance for credit losses | (353,055) | (300,665) |
Loans, net | 32,323,036 | 28,740,940 |
Premises and equipment, net | 256,877 | 327,885 |
Equity method investment | 445,223 | 443,185 |
Accrued interest receivable | 217,491 | 161,182 |
Goodwill | 1,846,973 | 1,846,973 |
Core deposits and other intangible assets | 27,465 | 34,555 |
Other real estate owned | 3,937 | 7,952 |
Other assets | 2,613,139 | 2,015,441 |
Total assets | 47,959,883 | 41,970,021 |
Deposits: | ||
Non-interest-bearing | 7,906,502 | 9,812,744 |
Interest-bearing | 11,365,349 | 7,884,605 |
Savings and money market accounts | 14,427,206 | 13,774,534 |
Time Deposits | 4,840,753 | 3,489,355 |
Total deposits | 38,539,810 | 34,961,238 |
Securities sold under agreements to repurchase | 209,489 | 194,910 |
Federal Home Loan Bank advances | 2,138,169 | 464,436 |
Subordinated debt and other borrowings | 424,938 | 424,055 |
Accrued interest payable | 66,967 | 19,478 |
Other liabilities | 544,722 | 386,512 |
Total liabilities | 41,924,095 | 36,450,629 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, no par value; 10.0 million shares authorized; 225,000 shares non-cumulative perpetual preferred stock, Series B, liquidation preference $225.0 million, issued and outstanding at Dec. 31, 2023 and 2022, respectively | 217,126 | 217,126 |
Common stock, par value $1.00; 180.0 million shares authorized; 76.8 million and 76.5 million shares issued and outstanding at Dec. 31, 2023 and 2022, respectively | 76,767 | 76,454 |
Additional paid-in capital | 3,109,493 | 3,074,867 |
Retained earnings | 2,784,927 | 2,341,706 |
Accumulated other comprehensive loss, net of taxes | (152,525) | (190,761) |
Total shareholders' equity | 6,035,788 | 5,519,392 |
Total liabilities and shareholders' equity | $ 47,959,883 | $ 41,970,021 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets [Abstract] | ||
Securities held-to-maturity, fair value | $ 2,775,184 | $ 2,744,946 |
Allowance for credit losses - securities held-to-maturity | $ (1,707) | $ (1,608) |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 225,000 | 225,000 |
Preferred stock, shares outstanding (in shares) | 225,000 | 225,000 |
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) | 76,767,000 | 76,454,000 |
Common stock, shares outstanding (in shares) | 76,767,000 | 76,454,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income: | |||
Loans, including fees | $ 1,950,365,000 | $ 1,182,492,000 | $ 924,043,000 |
Securities: | |||
Taxable | 140,308,000 | 67,063,000 | 34,769,000 |
Tax-exempt | 97,625,000 | 81,522,000 | 64,848,000 |
Federal funds sold and other | 165,070,000 | 42,858,000 | 7,554,000 |
Total interest income | 2,353,368,000 | 1,373,935,000 | 1,031,214,000 |
Interest expense: | |||
Deposits | 983,118,000 | 204,119,000 | 54,116,000 |
Securities sold under agreements to repurchase | 3,744,000 | 794,000 | 239,000 |
Federal Home Loan Bank advances and other borrowings | 104,388,000 | 39,729,000 | 44,458,000 |
Total interest expense | 1,091,250,000 | 244,642,000 | 98,813,000 |
Net interest income | 1,262,118,000 | 1,129,293,000 | 932,401,000 |
Provision for credit losses | 93,596,000 | 67,925,000 | 16,126,000 |
Net interest income after provision for credit losses | 1,168,522,000 | 1,061,368,000 | 916,275,000 |
Noninterest income: | |||
Total noninterest income | 433,253,000 | 416,124,000 | 395,734,000 |
Noninterest expense: | |||
Salaries and employee benefits | 531,828,000 | 510,175,000 | 436,006,000 |
Equipment and occupancy | 138,980,000 | 109,672,000 | 95,250,000 |
Other real estate (benefit) expense, net | 315,000 | 280,000 | (712,000) |
Marketing and other business development | 23,914,000 | 21,073,000 | 12,888,000 |
Postage and supplies | 11,143,000 | 10,168,000 | 8,195,000 |
Amortization of intangibles | 7,090,000 | 7,810,000 | 8,518,000 |
Other noninterest expense | 174,499,000 | 120,821,000 | 99,959,000 |
Total noninterest expense | 887,769,000 | 779,999,000 | 660,104,000 |
Income before income taxes | 714,006,000 | 697,493,000 | 651,905,000 |
Income tax expense | 151,854,000 | 136,751,000 | 124,582,000 |
Net income | 562,152,000 | 560,742,000 | 527,323,000 |
Preferred stock dividends | 15,192,000 | 15,192,000 | 15,192,000 |
Net income available to common shareholders | $ 546,960,000 | $ 545,550,000 | $ 512,131,000 |
Per share information: | |||
Basic net income per common share | $ 7.20 | $ 7.20 | $ 6.79 |
Diluted net income per common share | $ 7.14 | $ 7.17 | $ 6.75 |
Weighted average common shares outstanding: | |||
Basic | 76,016,370 | 75,735,404 | 75,468,339 |
Diluted | 76,647,543 | 76,133,865 | 75,927,147 |
Service charges on deposit accounts | |||
Noninterest income: | |||
Total noninterest income | $ 49,223,000 | $ 44,675,000 | $ 41,311,000 |
Investment services | |||
Noninterest income: | |||
Total noninterest income | 52,432,000 | 46,441,000 | 37,917,000 |
Insurance sales commissions | |||
Noninterest income: | |||
Total noninterest income | 13,670,000 | 12,186,000 | 10,516,000 |
Gains on mortgage loans sold, net | |||
Noninterest income: | |||
Total noninterest income | 6,511,000 | 7,268,000 | 32,424,000 |
Investment gains (losses) on sales, net | |||
Noninterest income: | |||
Total noninterest income | (19,674,000) | 156,000 | 759,000 |
Trust fees | |||
Noninterest income: | |||
Total noninterest income | 26,683,000 | 23,511,000 | 20,724,000 |
Income from equity method investment | |||
Noninterest income: | |||
Total noninterest income | 85,402,000 | 145,466,000 | 122,274,000 |
Other noninterest income | |||
Noninterest income: | |||
Total noninterest income | 132,958,000 | 135,964,000 | 129,794,000 |
Gain loss on sale of fixed assets | |||
Noninterest income: | |||
Total noninterest income | $ 86,048,000 | $ 457,000 | $ 15,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income: | $ 562,152 | $ 560,742 | $ 527,323 |
Other comprehensive income (loss), net of tax: | |||
Changes in fair value on available-for-sale securities, net of tax | 48,038 | (283,382) | (32,509) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | (7,414) | 1,002 | (18,373) |
Accretion of net unrealized gains on securities transferred from available-for-sale to held-to-maturity, net of tax | (7,454) | (5,477) | (7,575) |
Net gain on cash flow hedges reclassified from other comprehensive income into net income, net of tax | (9,689) | (9,975) | (9,645) |
Net loss (gain) on sale of investment securities reclassified from other comprehensive income into net income, net of tax | 14,755 | (115) | (561) |
Total other comprehensive income (loss), net of tax | 38,236 | (297,947) | (68,663) |
Total comprehensive income | $ 600,388 | $ 262,795 | $ 458,660 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI Attributable to Parent | Accounting Standards Update 2016-13 | Accounting Standards Update 2016-13 Retained Earnings | |
Balance (in shares) at Dec. 31, 2020 | 75,850,000 | ||||||||
Balance at Dec. 31, 2020 | $ 4,904,611 | $ 217,126 | $ 75,850 | $ 3,028,063 | $ 1,407,723 | $ 175,849 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits (in shares) | 45,125 | 45,000 | |||||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits | $ 1,001 | $ 45 | 956 | ||||||
Dividends, Preferred Stock, Cash | 15,192 | (15,192) | |||||||
Common dividends paid | 55,504 | (55,504) | |||||||
Issuance of restricted common shares, net of forfeitures (in shares) | 213,000 | ||||||||
Issuance of restricted common shares, net of forfeitures | 0 | $ 213 | (213) | ||||||
Restricted shares withheld for taxes & related tax benefit | 88,000 | ||||||||
Issuance of restricted common shares, net of forfeitures | (3,790) | $ 88 | (3,878) | ||||||
Restricted shares withheld for taxes (in shares) | (53,000) | ||||||||
Issuance of restricted common shares, net of forfeitures | (4,131) | $ (53) | (4,078) | ||||||
Stock-based compensation expense | 24,952 | 24,952 | |||||||
Net income | 527,323 | 527,323 | |||||||
Other Comprehensive Income (Loss) | (68,663) | (68,663) | |||||||
Balance (in shares) at Dec. 31, 2021 | 76,143,000 | ||||||||
Balance at Dec. 31, 2021 | $ 5,310,607 | 217,126 | $ 76,143 | 3,045,802 | 1,864,350 | 107,186 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits (in shares) | 15,959 | 16,000 | |||||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits | $ 328 | $ 16 | 312 | ||||||
Dividends, Preferred Stock, Cash | 15,192 | (15,192) | |||||||
Common dividends paid | 68,194 | (68,194) | |||||||
Issuance of restricted common shares, net of forfeitures (in shares) | 250,000 | ||||||||
Issuance of restricted common shares, net of forfeitures | 0 | $ 250 | (250) | ||||||
Restricted shares withheld for taxes & related tax benefit | 96,000 | ||||||||
Issuance of restricted common shares, net of forfeitures | (5,462) | $ 96 | (5,558) | ||||||
Restricted shares withheld for taxes (in shares) | (51,000) | ||||||||
Issuance of restricted common shares, net of forfeitures | (5,042) | $ (51) | (4,991) | ||||||
Stock-based compensation expense | 39,552 | 39,552 | |||||||
Net income | 560,742 | 560,742 | |||||||
Other Comprehensive Income (Loss) | (297,947) | (297,947) | |||||||
Balance (in shares) at Dec. 31, 2022 | 76,454,000 | ||||||||
Balance at Dec. 31, 2022 | $ 5,519,392 | 217,126 | $ 76,454 | 3,074,867 | 2,341,706 | (190,761) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits (in shares) | 40,188 | 40,000 | |||||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits | $ 971 | $ 40 | 931 | ||||||
Dividends, Preferred Stock, Cash | 15,192 | (15,192) | |||||||
Common dividends paid | 68,737 | (68,737) | |||||||
Issuance of restricted common shares, net of forfeitures (in shares) | 235,000 | ||||||||
Issuance of restricted common shares, net of forfeitures | 0 | $ 235 | (235) | ||||||
Restricted shares withheld for taxes & related tax benefit | 97,000 | ||||||||
Issuance of restricted common shares, net of forfeitures | (3,725) | $ 97 | (3,822) | ||||||
Restricted shares withheld for taxes (in shares) | (59,000) | ||||||||
Issuance of restricted common shares, net of forfeitures | (4,186) | $ (59) | (4,127) | ||||||
Stock-based compensation expense | 41,879 | 41,879 | |||||||
Net income | 562,152 | 562,152 | |||||||
Cumulative effect of change in accounting principle | [1] | $ (35,002) | $ (35,002) | ||||||
Other Comprehensive Income (Loss) | 38,236 | 38,236 | |||||||
Balance (in shares) at Dec. 31, 2023 | 76,767,000 | ||||||||
Balance at Dec. 31, 2023 | $ 6,035,788 | $ 217,126 | $ 76,767 | $ 3,109,493 | $ 2,784,927 | $ (152,525) | |||
[1]Represents the impact of Banker's Healthcare Group's adoption of ASU 2016-13. See Note 2. Equity Method Investment. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net income | $ 562,152 | $ 560,742 | $ 527,323 |
Operating activities: | |||
Net amortization/accretion of premium/discount on securities | 58,792 | 65,838 | 59,066 |
Depreciation, amortization and accretion | 78,698 | 62,298 | 53,256 |
Provision for credit losses | 93,596 | 67,925 | 16,126 |
Gains on mortgage loans sold, net | (6,511) | (7,268) | (32,424) |
Investment losses (gains) on sales, net | 19,674 | (156) | (759) |
Gain on other equity investments, net | (8,732) | (10,605) | (23,109) |
Gain on remeasurement of previously held noncontrolling interest | 0 | (5,500) | 0 |
Stock-based compensation expense | 41,879 | 39,552 | 24,952 |
Deferred tax expense (benefit) | 72,368 | 19,740 | (12,232) |
Losses (gains) on disposition of other real estate and other investments | 13 | (179) | (1,168) |
Gain on sale of fixed assets | (86,048) | (457) | (15) |
Income from equity method investment | (85,402) | (145,466) | (122,274) |
Dividends received from equity method investment | 36,694 | 63,114 | 69,996 |
Excess tax benefit from stock compensation | (208) | (3,027) | (2,475) |
Gains on commercial loans sold, net | (643) | (2,275) | (4,143) |
(Increase) decrease in other assets | (262,851) | (82,436) | 73,542 |
Increase (decrease) in other liabilities | 7,944 | (26,620) | (60,315) |
Net cash provided by operating activities | 478,404 | 604,925 | 657,444 |
Investing activities: | |||
Payments to Acquire Debt Securities, Available-for-sale | 1,114,808 | 699,293 | 2,107,794 |
Proceeds from Sale of Debt Securities, Available-for-sale | 312,574 | 29,501 | 37,457 |
Proceeds from Maturities, Prepayments and Calls of Debt Securities, Available-for-sale | 139,251 | 417,348 | 617,054 |
Payments to Acquire Held-to-maturity Securities | 0 | 968,449 | 186,260 |
Proceeds from Maturities, Prepayments and Calls of Held-to-maturity Securities | 43,639 | 74,770 | 40,442 |
Net decrease (increase) in securities purchased under agreements to resell | (44,733) | 486,724 | (1,000,000) |
Increase in loans, net | 3,812,426 | 5,634,350 | 1,027,185 |
Proceeds from Sale, Loan and Lease, Held-for-Investment | 117,216 | 0 | 0 |
Purchases of premises and equipment and software | 78,256 | 63,522 | 23,178 |
Purchase of bank owned life insurance | 244,000 | 100,000 | 0 |
Proceeds from bank owned life insurance settlement | 3,992 | 1,951 | 1,656 |
Proceeds from sales of software, premises, and equipment | 198,920 | 698 | 281 |
Acquisitions, net of cash acquired | 0 | 30,896 | 0 |
Proceeds from sale of other real estate | 6,018 | 994 | 6,090 |
Proceeds from (payments for) derivative instruments | 0 | (95,734) | 99,710 |
Payments to Acquire Federal Home Loan Bank Stock | (36,829) | (12,389) | |
Proceeds from sale (purchase) of Federal Home Loan Bank stock | 12,602 | ||
Purchase of other intangible assets | 0 | 825 | 0 |
Increase in other investments | 92,997 | 90,967 | 83,830 |
Net cash used in investing activities | (4,602,439) | (6,684,439) | (3,612,955) |
Financing activities: | |||
Net increase in deposits | 3,578,604 | 3,661,396 | 3,599,084 |
Net increase in securities sold under agreements to repurchase | 14,579 | 42,351 | 24,395 |
Federal Home Loan Bank: Advances | 3,425,000 | 500,000 | 0 |
Federal Home Loan Bank: Repayments/maturities | 1,750,001 | 925,000 | 200,001 |
Repayments of Notes Payable | 0 | (29,547) | (250,000) |
Principal payments of finance lease obligation | 311 | 281 | 261 |
Issuance of common stock pursuant to restricted stock unit agreement, net of shares withheld for taxes | (3,725) | (5,462) | (3,790) |
Proceeds From Stock Options Exercised, Net of Repurchase of Restricted Shares | (3,215) | 4,714 | 3,130 |
Common dividends paid | 68,737 | 68,194 | 55,504 |
Preferred stock dividends paid | 15,192 | 15,192 | 15,192 |
Net cash provided by financing activities | 5,177,002 | 3,155,357 | 3,095,601 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 1,052,967 | (2,924,157) | 140,090 |
Cash, cash equivalents and restricted cash, beginning of year | 1,177,382 | 4,101,539 | 3,961,449 |
Cash, cash equivalents and restricted cash, end of year | 2,230,349 | 1,177,382 | 4,101,539 |
Commercial Loan [Member] | |||
Operating activities: | |||
Payments for Origination and Purchases of Loans Held-for-sale | (368,588) | (498,312) | (564,647) |
Proceeds from Sale of Loans Held-for-sale | 381,045 | 497,180 | 582,305 |
Consumer Loan [Member] | |||
Operating activities: | |||
Payments for Origination and Purchases of Loans Held-for-sale | (1,754,147) | (1,578,168) | (2,037,897) |
Proceeds from Sale of Loans Held-for-sale | $ 1,698,679 | $ 1,589,005 | $ 2,112,336 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Nature of Business — Pinnacle Financial Partners, Inc. (Pinnacle Financial) is a financial holding company whose primary business is conducted by its wholly-owned subsidiary, Pinnacle Bank (Pinnacle Bank). Pinnacle Bank is a Tennessee state-chartered commercial bank headquartered in Nashville, Tennessee. Pinnacle Bank also holds a 49% interest in Bankers Healthcare Group, LLC (BHG), a company that primarily serves as a full-service commercial loan provider to healthcare and other professional practices and providers but also makes consumer loans for various purposes. The investment in BHG previously held by Pinnacle Financial was contributed to Pinnacle Bank effective September 30, 2022. Pinnacle Bank provides a full range of banking services, including investment, mortgage, insurance and comprehensive wealth management services, in its 17 primarily urban markets and their surrounding communities. On March 1, 2022, Pinnacle Bank acquired the remaining 80% outstanding membership interest of JB&B Capital, LLC (JB&B) for a cash price of $32.0 million. JB&B is a commercial equipment financing business headquartered in Knoxville, TN. Pinnacle Bank had previously acquired 20% of JB&B in 2017. Pinnacle Financial accounted for the acquisition of JB&B under the acquisition method in accordance with Accounting Standards Codification (ASC) Topic 805, Business Combinations . Accordingly, the purchase price is allocated to the fair value of the assets acquired and liabilities assumed as of the date of the acquisition. Determining the fair value of assets and liabilities, particularly illiquid assets and liabilities, is a complicated process involving significant judgment regarding estimates and assumptions used to calculate estimated fair value. At the acquisition date, JB&B's net assets were initially recorded at a fair value of $12.9 million, consisting mainly of loans and leases receivable. JB&B's $29.5 million of indebtedness was also paid off in connection with consummation of the acquisition. The preexisting noncontrolling interest of JB&B held by Pinnacle Bank was remeasured at a fair value of $8.0 million on the acquisition date resulting in a gain on remeasurement of $5.5 million that was recorded in other noninterest income during the year ended December 31, 2022. The purchase price allocations for the acquisition of JB&B were finalized during the first quarter of 2023. Basis of Presentation — These consolidated financial statements include the accounts of Pinnacle Financial and its direct and indirect wholly-owned subsidiaries. Certain statutory trust affiliates of Pinnacle Financial, as noted in Note 9 , 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. generally accepted accounting principles 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 dates and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for credit losses and the determination of any impairment of goodwill or intangible assets. It is reasonably possible Pinnacle Financial's estimate of the allowance for credit losses and determination of impairment of intangible assets could change as a result of the uncertainty in current macroeconomic conditions. The resulting change in these estimates could be material to Pinnacle Financial's consolidated financial statements. Impairment — Long-lived assets, including purchased intangible assets subject to amortization, such as core deposit intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. Pinnacle Financial had $27.5 million and $34.6 million of long-lived intangibles at December 31, 2023 and 2022, respectively. Goodwill is evaluated for impairment at least annually and more frequently if events and circumstances indicate that the asset might be impaired. ASC 350, Intangibles - Goodwill and Other, provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity performs a qualitative assessment and determines it is necessary, or if a qualitative assessment is not performed, the entity is required to perform a one-step test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit (if any). If, based on a qualitative assessment, an entity determines that the fair value of a reporting unit is more than its carrying amount, the one-step goodwill impairment test is not required. Pinnacle Financial performed a qualitative assessment of goodwill as of December 31, 2023 by examining changes in macroeconomic conditions, industry and market conditions, overall financial performance, cost factors and other relevant entity-specific events, including changes in the share price of Pinnacle Financial's common stock. The results of the qualitative assessment indicated that it was more likely than not that the estimated fair value of Pinnacle Financial's sole reporting unit exceeded its carrying value amount at December 31, 2023 and, therefore, no goodwill impairment was recorded. Should Pinnacle Financial's common stock price decline below book value per share and remain below book value per share for an extended duration or other impairment indicators become known, additional impairment testing of goodwill may be required. Should it be determined in a future period that the goodwill has become impaired, then a charge to earnings will be recorded in the period such determination is made. The following table presents activity for goodwill and other intangible assets (in thousands): Goodwill Core deposit and Total Balance at December 31, 2022 $ 1,846,973 $ 34,555 $ 1,881,528 Acquisitions and purchase of other intangible asset — — — Amortization — (7,090) (7,090) Balance at December 31, 2023 $ 1,846,973 $ 27,465 $ 1,874,438 The following table presents the gross carrying amount and accumulated amortization for the core deposit and other intangible assets (in thousands): December 31, 2023 December 31, 2022 Gross carrying amount $ 117,211 $ 117,211 Accumulated amortization (89,746) (82,656) Net book value $ 27,465 $ 34,555 Cash Equivalents and Cash Flows — Cash on hand, cash items in process of collection, amounts due from banks, Federal funds sold, short-term discount notes and securities purchased under agreements to resell, with original maturities within ninety days, are included in cash and cash equivalents. The following supplemental cash flow information addresses certain cash payments and noncash transactions for each of the years in the three-year period ended December 31, 2023 as follows (in thousands): For the years ended December 31, 2023 2022 2021 Cash Payments: Interest $ 1,042,542 $ 236,463 $ 110,119 Income taxes paid 99,890 128,850 108,304 Noncash Transactions: Loans charged-off to the allowance for credit losses 76,725 54,176 54,996 Loans foreclosed upon with repossessions transferred to other real estate 2,016 230 1,098 Loans foreclosed upon with repossessions transferred to other repossessed assets 561 — — Available-for-sale securities transferred to held-to-maturity portfolio — 1,059,737 — Proceeds receivable from restructure of bank owned life insurance policies 141,547 — — Right-of-use assets recognized in the period in exchange for lease obligations 205,776 42,413 17,642 Securities — Securities are classified based on management's intention on the date of purchase. All debt securities classified as available-for-sale are recorded at fair value with any unrealized gains and losses reported in accumulated other comprehensive income (loss), net of the deferred income tax effects. Securities that Pinnacle Financial has both the positive intent and ability to hold to maturity are classified as held-to-maturity and are carried at historical cost and adjusted for amortization of premiums and accretion of discounts. Interest and dividends on securities, including amortization of premiums and accretion of discounts calculated under the effective interest method, are included in interest income. For certain securities, amortization of premiums and accretion of discounts is computed based on the anticipated life of the security which may be shorter than the stated life of the security. Realized gains and losses from the sale of securities are determined using the specific identification method and are recorded on the trade date of the sale. Periodically, available-for-sale securities may be sold or the composition of the portfolio realigned to improve yields, quality or marketability, to implement changes in investment or asset/liability strategy, including maintaining collateral requirements and raising funds for liquidity purposes or in preparation of anticipated changes in market interest rates. Additionally, if an available-for-sale security loses its investment grade, 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. Allowance for Credit Losses - Securities Held-to-Maturity — Expected credit losses on debt securities classified as held-to-maturity are measured on a collective basis by major security type. Pinnacle has a zero loss expectation for certain securities within the portfolio, including U.S. treasury securities in addition to U.S government agency securities and residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, and accordingly, no allowance for credit losses is estimated for these securities. The remainder of the portfolio consists substantially of municipal securities rated A or higher by the ratings agencies. The estimates of expected credit losses for the municipal securities and corporate notes and other securities are based on historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The credit models utilized rely on regression analyses to predict probability of default (PD) based on projected macroeconomic factors, including unemployment rates and gross domestic product (GDP), among others. A reasonable and supportable period of twenty-four months and reversion period of eight months is utilized to estimate credit losses on held-to-maturity municipal and corporate securities. The allowance is increased through provision for credit losses and decreased by charge-offs, net of recoveries of amounts previously charged-off. Allowance for Credit Losses - Securities Available-for-Sale — For any securities classified as available-for-sale that are in an unrealized loss position at the balance sheet date, Pinnacle Financial assesses whether or not it intends to sell the security, or more likely than not will be required to sell the security, before recovery of its amortized cost basis. If either criteria is met, the security's amortized cost basis is written down to fair value through net income. If neither criteria is met, Pinnacle Financial evaluates whether any portion of the decline in fair value is the result of credit deterioration. Such evaluations consider the extent to which the amortized cost of the security exceeds its fair value, changes in credit ratings and any other known adverse conditions related to the specific security. If the evaluation indicates that a credit loss exists, an allowance for credit losses is recorded through provision for credit losses for the amount by which the amortized cost basis of the security exceeds the present value of cash flows expected to be collected, limited by the amount by which the amortized cost exceeds fair value. Any impairment not recognized in the allowance for credit losses is recognized in other comprehensive income. Loans held-for-sale — Loans originated and intended for sale are carried at the lower of cost or estimated fair value as determined on a loan-by-loan basis. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Realized gains and losses are recognized when legal title to the loans has been transferred to the purchaser and sales proceeds have been received and are reflected in the accompanying consolidated statement of income in gains on mortgage loans sold, net of related costs such as compensation expenses, for mortgage loans, and as a component of other noninterest income for commercial loans held-for-sale. Loans — Pinnacle Financial uses the following loan segments for financial reporting purposes: owner occupied commercial real estate mortgage, non-owner occupied commercial real estate, consumer real estate mortgage, construction and land development, commercial and industrial and consumer and other. The appropriate classification is determined based on the underlying collateral utilized to secure each loan. These classifications are consistent with those utilized in the Quarterly Report of Condition and Income filed by Pinnacle Bank with the Federal Deposit Insurance Corporation (FDIC). Loans are reported at their outstanding principal balances, net of applicable purchase accounting and any deferred fees or costs on originated loans. Interest income on loans is accrued based on the principal balance outstanding. Loan origination fees, net of certain loan origination costs, are deferred and recognized as an adjustment to the related loan yield using a method which approximates the interest method. At December 31, 2023 and 2022, net deferred loan fees of $4.8 million and $26.1 million, respectively, were included as a reduction to loans on the accompanying consolidated balance sheets. As part of our routine credit monitoring process, commercial loans receive risk ratings by the assigned financial advisor and are subject to validation by our independent loan review department. Risk ratings are categorized as pass, special mention, substandard, substandard-nonaccrual or doubtful-nonaccrual. Pinnacle Financial believes that its categories follow those outlined by the FDIC, Pinnacle Bank's primary federal regulator. At December 31, 2023, approximately 79.2% of Pinnacle Financial's loan portfolio was specifically assigned a risk rating. Certain consumer loans and commercial relationships that possess certain qualifying characteristics, including individually smaller balances, are generally not assigned an individual risk rating but are evaluated collectively for credit risk as a homogeneous pool of loans and individually as either accrual or nonaccrual based on the performance of the loan. Loans are placed on nonaccrual status when there is a significant deterioration in the financial condition of the borrower, which generally is the case but is not limited to when the principal or interest is more than 90 days past due, unless the loan is both well-secured and in the process of collection. All interest accrued but not collected for loans that are placed on nonaccrual status is reversed against current interest income. Interest income is subsequently recognized only if certain cash payments are received while the loan is classified as nonaccrual, but interest income recognition is reviewed on a case-by-case basis to determine if the payment should be applied to interest or principal pursuant to regulatory guidelines. A nonaccrual loan is returned to accruing status once the loan has been brought current as to principal and interest and collection is reasonably assured or the loan has been well-secured through other techniques. Loans are charged off when management believes that the full collectability of the loan is unlikely. As such, a loan may be partially charged-off after a "confirming event" has occurred which serves to validate that full repayment pursuant to the terms of the loan is unlikely. Purchased loans, including loans acquired through a merger, are initially recorded at fair value on the date of purchase. At the time of acquisition, management evaluates all purchased loans using a variety of factors such as current classification or risk rating, past due status and history as a component of the fair value determination. For purchased loans that have not experienced more-than-insignificant credit deterioration since origination, management evaluates each reviewed loan using an internal grading system with a grade assigned to each loan at the date of acquisition. To the extent that any purchased loan is not specifically reviewed, such loan is assumed to have characteristics similar to the characteristics of the specifically reviewed acquired portfolio of purchased loans. Purchased loans that have experienced more than insignificant credit deterioration since origination ("purchased credit deteriorated loans") are individually evaluated by management to determine the estimated fair value of each loan. In determining the estimated fair value of such loans, management considers a number of factors including, among other things, the remaining life of the acquired loans, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral, estimated holding periods, and net present value of cash flows expected to be received. Allowance for Credit Losses - Loans — Pinnacle Financial estimates its allowance for credit losses in accordance with the Current Expected Credit Losses (CECL) methodology. Pinnacle Financial's management assesses the adequacy of the allowance on a quarterly basis. This assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance. The level of the allowance is based upon management's evaluation of historical default and loss experience, current and projected economic conditions, asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers' ability to repay a loan (including the timing of future payments), the estimated value of any underlying collateral, composition of the loan portfolio, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. The level of the allowance for credit losses maintained by management is believed adequate to absorb all expected future losses inherent in the loan portfolio at the balance sheet date. The allowance is increased through provision for credit losses and decreased by charge-offs, net of recoveries of amounts previously charged-off. During the second quarter of 2023, Pinnacle Financial implemented updated CECL models in an effort to ensure that risk in its portfolio at an individual loan level continues to be adequately captured given the uncertain state of the economy. The implementation of the new model had no material effect on the overall allowance for credit losses in the quarter of implementation. The allowance for credit losses is measured on a collective basis for pools of loans with similar risk characteristics. Pinnacle Financial has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses: • Owner occupied commercial real estate mortgage loans - Owner occupied commercial real estate mortgage loans are secured by commercial office buildings, industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. For such loans, repayment is largely dependent upon the operation of the borrower's business. • Non-owner occupied commercial real estate loans - These loans represent investment real estate loans secured by office buildings, industrial buildings, warehouses, retail buildings, and multifamily residential housing. Repayment is primarily dependent on lease income generated from the underlying collateral. • Consumer real estate mortgage loans - Consumer real estate mortgage loans consist primarily of loans secured by 1-4 family residential properties, including home equity lines of credit. Repayment is primarily dependent on the personal cash flow of the borrower. • Construction and land development loans - Construction and land development loans include loans where the repayment is dependent on the successful completion and eventual sale, refinance or operation of the related real estate project. Construction and land development loans include 1-4 family construction projects and commercial construction endeavors such as warehouses, apartments, office and retail space and land acquisition and development. • Commercial and industrial loans - Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. These loans are generally secured by equipment, inventory, and accounts receivable of the borrower and repayment is primarily dependent on business cash flows. Loans granted under the Paycheck Protection Program (PPP), which are fully guaranteed by the SBA, are included in this category. • Consumer and other loans - Consumer and other loans include all loans issued to individuals not included in the consumer real estate mortgage classification. Examples of consumer and other loans are automobile loans, consumer credit cards and loans to finance education, among others. Many consumer loans are unsecured. Repayment is primarily dependent on the personal cash flow of the borrower. For commercial real estate, consumer real estate, construction and land development, and commercial and industrial loans, Pinnacle Financial primarily utilizes a probability of default (PD) and loss given default (LGD) modeling approach. These models utilize historical correlations between default experience, loan level attributes and certain macroeconomic factors as determined through a statistical regression analysis. All loan segments modeled using this approach incorporate one or more macroeconomic drivers. Macroeconomic factors used in the model include the unadjusted and seasonally adjusted unemployment rate, gross domestic product, commercial property price index, consumer credit, commercial real estate price index, household debt ratio, household financial obligations ratio, and certain home price indices. Projections of these macroeconomic factors, obtained from an independent third party, are utilized to predict quarterly rates of default based on the statistical PD models. Adjustments are made to predicted default rates as considered necessary for each loan segment based on other quantitative and qualitative information not utilized as a direct input into the statistical models. The predicted quarterly default rates are then applied to the estimated future exposure at default (EAD), as determined based on contractual amortization terms and estimated prepayments. An estimated LGD, determined based on historical loss experience, is then applied to the quarterly defaulted balances for each loan segment to estimate future losses of the loan's amortized cost. Losses are predicted over a period of time determined to be reasonable and supportable, and at the end of the reasonable and supportable period losses are reverted to long term historical averages. The reasonable and supportable period and reversion period are re-evaluated each quarter by Pinnacle Financial and are dependent on the current economic environment among other factors. At December 31, 2023, a reasonable and supportable period of fifteen months was utilized for all loan segments, followed by a twelve month straight line reversion to long term averages. For the consumer and other loan segment, a loss rate approach is utilized. For these loans, historical charge off rates are applied to projected future balances, as determined in the same manner as EAD for the statistically modeled loan segments. For credit cards, which have no amortization terms or contractual maturities and are unconditionally cancellable, future balances are estimated based on expected payment volume applied to the current balance. The estimated loan losses for all loan segments are adjusted for changes in qualitative factors not inherently considered in the quantitative analyses. The qualitative categories and the measurements used to quantify the risks within each of these categories are subjectively selected by management but measured by objective measurements period over period. The data for each measurement may be obtained from internal or external sources. The current period measurements are evaluated and assigned a factor commensurate with the current level of risk relative to past measurements over time. The resulting qualitative adjustments are applied to the relevant collectively evaluated loan portfolios. These adjustments are based upon quarterly trend assessments in portfolio concentrations, policy exceptions, associate retention, independent loan review results, competition and peer group credit quality trends. The qualitative allowance allocation, as determined by the processes noted above, is increased or decreased for each loan segment based on the assessment of these various qualitative factors. Additional qualitative considerations are made for any identified risk which did not exist within our portfolio historically and therefore may not be adequately addressed through evaluation of such risk factor based on historical portfolio trends as previously discussed. Loans that do not share similar risk characteristics with the collectively evaluated pools are evaluated on an individual basis and are excluded from the collectively evaluated pools. Individual evaluations are generally performed for loans greater than $1.0 million which have experienced significant credit deterioration. Such loans are evaluated for credit losses based on either discounted cash flows or the fair value of collateral. For loans individually evaluated for which repayment is expected to be provided substantially through the operation or sale of the collateral, Pinnacle Financial has elected the practical expedient under ASC 326 to estimate expected credit losses based on the fair value of the collateral, with selling costs considered in the event sale of the collateral is expected. The starting point for the estimate of the allowance for credit losses on loans is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. Pinnacle Financial uses a probability of default/loss given default model to determine the allowance for credit losses on loans. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses on loans because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses on loans is generally not recorded upon modification. Occasionally, a loan modification will be granted by providing principal forgiveness on certain loans. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses on loans. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses on loans. In some cases, a loan restructuring will result in providing multiple types of modifications. Typically, one type of modification, such as a payment delay or term extension, is granted initially. If the borrower continues to experience financial difficulty, another modification, such as principal forgiveness or an interest rate reduction, may be granted. Additionally, multiple types of modifications may be made on the same loan within the current reporting period. Such a combination is at least two of the following: a payment delay, term extension, principal forgiveness and interest rate reduction. Upon determination that a modified loan (or portion of the loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses on loans is adjusted by the same amount. In assessing the adequacy of the allowance for credit losses on loans, Pinnacle Financial considers the results of Pinnacle Financial's ongoing independent loan review process. Pinnacle Financial undertakes this process both to ascertain those loans in the portfolio with elevated credit risk and to assist in its overall evaluation of the risk characteristics of the entire loan portfolio. Its loan review process includes the judgment of management, independent internal loan reviewers and reviews that may have been conducted by third-party reviewers including regulatory examiners. Pinnacle Financial incorporates relevant loan review results in the allowance. In accordance with CECL, losses are estimated over the remaining contractual terms of loans, adjusted for prepayments. The contractual term excludes expected extensions, renewals and modifications unless management has a reasonable expectation at the reporting date that a modification will be executed or such renewals, extensions or modifications are included in the original loan agreement and are not unconditionally cancellable by Pinnacle Financial. Credit losses are estimated on the amortized cost basis of loans, which includes the principal balance outstanding, purchase discounts and premiums, deferred loan fees and costs and accrued interest receivable. Accrued interest receivable is presented separately on the balance sheets and as allowed under Accounting Standards Update (ASU) 2016-13 Financial Instruments - Credit Losses is excluded from the tabular loan disclosures in Note 5. While policies and procedures used to estimate the allowance for credit losses on loans, as well as the resultant provision for credit losses charged to income, are considered adequate by management and are reviewed periodically by regulators, model validators and internal audit, they are necessarily approximate and imprecise. There are factors beyond Pinnacle Financial's control, such as changes in projected economic conditions, real estate markets or particular industry conditions which may materially impact asset quality and the adequacy of the allowance for credit losses on loans and thus the resulting provision for credit losses. Allowance for Credit Losses on Off Balance Sheet Credit Exposures — Pinnacle Financial estimates expected credit losses over the contractual term of obligations to extend credit, unless the obligation is unconditionally cancellable. The allowance for off balance sheet exposures is adjusted through the provision for credit losses. The estimates are determined based on the likelihood of funding during the contractual term and an estimate of credit losses subsequent to funding. Estimated credit losses on subsequently funded balances are based on the same assumptions as used to estimate credit losses on existing funded loans. Transfers of Financial Assets — Transfers of financial assets are accounted for as sales when control over the assets has been surrendered or in the case of a loan participation, a portion of the asset has |
Equity method investment
Equity method investment | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Note 2. Equity Method Investment On February 1, 2015, Pinnacle Bank acquired a 30% interest in Bankers Healthcare Group, LLC (BHG) for $75 million in cash. On March 1, 2016, Pinnacle Bank and Pinnacle Financial increased their investment in BHG by a combined 19%, for a total investment in BHG of 49%. The additional 19% interest was acquired pursuant to a purchase agreement whereby both Pinnacle Financial and Pinnacle Bank acquired 8.55% and an additional 10.45%, respectively, of the outstanding membership interests in BHG in exchange for $74.1 million in cash and 860,470 shares of Pinnacle Financial common stock valued at $39.9 million. The investment in BHG previously held by Pinnacle Financial was contributed to Pinnacle Bank effective September 30, 2022. On March 1, 2016, Pinnacle Financial, Pinnacle Bank and the other members of BHG entered into an Amended and Restated Limited Liability Company Agreement of BHG and have subsequently entered into a Second Amended and Restated Limited Liability Company Agreement on February 2, 2021. The Second Amended and Restated Limited Liability Company Agreement, provides for, among other things, the following terms: • co-sale rights for Pinnacle Bank in the event the other members of BHG decide to sell all or a portion of their ownership interests; and • a right of first refusal for BHG and the other members of BHG in the event that Pinnacle Bank decides to sell all or a portion of its ownership interests, except in connection with a transfer of its ownership interests to an affiliate or in connection with the acquisition of Pinnacle Financial or Pinnacle Bank or a merger in which Pinnacle Financial or Pinnacle Bank is not the surviving entity. Pinnacle Financial accounts for this investment pursuant to the equity method for unconsolidated subsidiaries and will recognize its interest in BHG's profits and losses in noninterest income with corresponding adjustments to the BHG investment account. Because BHG has been determined to be a voting interest entity of which Pinnacle Financial controls less than a majority of the board seats, this investment does not require consolidation and is accounted for pursuant to the equity method of accounting. Additionally, Pinnacle Financial did not recognize any goodwill or other intangible assets associated with these transactions as of the respective purchase dates, however, it will recognize accretion income and amortization expense associated with the fair value adjustments to the net assets acquired including the fair value of certain of BHG's liabilities which are recorded as a component of income from equity method investment, pursuant to the equity method of accounting. In accordance with Regulation S-X 3-09, the audited consolidated balance sheets of BHG as of September 30, 2023 and 2022, and the related consolidated statements of income, comprehensive income, members’ equity, and cash flows for each of the three years in the period ended September 30, 2023 are filed herewith as Exhibit 99.1 as a result of the fact that Pinnacle Bank’s share of BHG’s pre-tax net income for the year ended December 31, 2022 exceeded 20% of Pinnacle Financial’s consolidated pre-tax net income for the same period. Pinnacle Bank's share of BHG's pre-tax net income for the year ended December 31, 2023 did not exceed 20% of Pinnacle Financial's consolidated pre-tax net income for the same period. BHG has a fiscal year-end of September 30th. For each of the fiscal years in the period from December 31, 2016 through December 31, 2021, Pinnacle Financial included summarized financial information for BHG as of and for the periods presented in the footnotes to Pinnacle Financial’s consolidated financial statements in its Annual Reports on Form 10-K in accordance with Regulation S-X 4-08(g), as a result of the fact that Pinnacle Financial’s share of BHG’s pre-tax net income exceeded 10%, but not 20%, of Pinnacle Financial’s consolidated pre-tax net income for the relevant periods presented. At December 31, 2023, Pinnacle Financial has recorded technology, trade name and customer relationship intangibles, net of related amortization, of $6.0 million compared to $6.3 million as of December 31, 2022. Amortization expense of $349,000 was included in Pinnacle Financial's results for the year ended December 31, 2023 compared to $512,000 for 2022 and $752,000 for 2021. Accretion income of $225,000 was included in Pinnacle Financial's results for the year ended December 31, 2023, while $718,000 of accretion income was recorded in 2022 and $1.5 million was recorded in 2021. Additionally, at December 31, 2023, Pinnacle Financial had recorded accretable discounts associated with certain liabilities of BHG of $200,000 compared to $500,000 as of December 31, 2022. During the year ended December 31, 2023, Pinnacle Bank received dividends from BHG of $36.7 million, compared to $63.1 million and $70.0 million received by Pinnacle Bank and Pinnacle Financial in the aggregate during the years ended December 31, 2022 and 2021, respectively. Pinnacle Financial's and Pinnacle Bank's share of earnings from BHG are included in Pinnacle Financial's consolidated tax return. Profits from intercompany transactions are eliminated. Pinnacle Bank has a participating interest in a $675.0 million revolving line of credit for the benefit of BHG in the amount of $150.0 million. At December 31, 2023, there was $69.4 million of outstanding balance on the line related to Pinnacle Bank's interest in the line. The line accrues interest at SOFR plus 200 basis points and is secured by all assets of BHG. The credit agreement contains covenants requiring BHG to maintain certain financial ratios and satisfy certain other affirmative and negative covenants. At December 31, 2023, neither BHG nor the originating bank had represented to Pinnacle Bank that BHG was not in compliance, in all material respects, with these covenants. BHG partners with third party lenders, including Pinnacle Bank, to facilitate loan originations as part of BHG’s alternative financing portfolio, whereby BHG acts as the marketing firm and refers loans to the third party lenders for funding. The third party lenders receive a fee for each loan funded and subsequently sold to BHG. These loans are ultimately sold through BHG's network of clients, which includes Pinnacle Bank. During the years ended December 31, 2023, 2022 and 2021, respectively, BHG purchased $1.4 billion, $1.0 billion and $646.6 million of loans originated by Pinnacle Bank, respectively. During the year ended December 31, 2023, Pinnacle Bank purchased no loans from BHG. During the years ended December 31, 2022 and 2021, Pinnacle Bank purchased $125.6 million and $276.7 million, respectively, of loans from BHG at par pursuant to BHG's joint venture loan program whereby BHG and Pinnacle Bank share proportionately in the credit risk of the acquired loans based on the rate on the loan and the rate of the purchase. The yield on this portfolio to Pinnacle Bank is anticipated to be between 4.50% and 6.00% per annum. At December 31, 2023 and 2022, there were $263.0 million and $350.6 million, respectively, of BHG joint venture program loans held by Pinnacle Bank. BHG adopted ASU 2016-13 on October 1, 2023, which introduced the CECL methodology for estimating all expected losses over the life of the financial asset. Upon adoption of ASU 2016-13, BHG's balance for the allowance for credit losses was increased by $95.2 million through retained earnings. Pinnacle Bank recorded its proportionate share of the impact of BHG's CECL adoption by recording a $35.0 million entry to retained earnings, net of deferred taxes, with corresponding entries to the equity method investment in BHG and deferred taxes. Prior to October 1, 2023, BHG recorded its allowance for loan losses under the incurred loss method. The following summary of BHG's financial position and results of operations as of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 are presented as unaudited due to BHG's fiscal year end being September 30 (in thousands): Banker's Healthcare Group December 31, 2023 December 31, 2022 Assets $ 4,304,835 $ 4,375,643 Liabilities $ 3,749,821 $ 3,821,725 Equity interests 555,014 553,918 Total liabilities and equity $ 4,304,835 $ 4,375,643 For the year ended December 31, 2023 2022 2021 Revenues $ 1,175,756 $ 1,110,230 $ 735,506 Net income, pre-tax $ 181,326 $ 295,186 $ 241,051 |
Restricted Cash Balances
Restricted Cash Balances | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash Balances | Note 3. Restricted Cash Balances Regulation D of the Federal Reserve Act requires that banks maintain reserve balances with the Federal Reserve Bank based principally on the type and amount of their deposits. At its option, Pinnacle Financial maintains additional balances to compensate for clearing and other services. For the years ended December 31, 2023 and 2022, the average daily balance maintained at the Federal Reserve was approximately $2.6 billion and $1.8 billion, respectively. Restricted cash included on Pinnacle Financial's consolidated balance sheets was $86.9 million and $31.4 million at December 31, 2023 and 2022, respectively. This restricted cash is maintained at banks as collateral primarily for our derivative portfolio. Pinnacle Financial maintains some of its cash in bank deposit accounts at financial institutions other than Pinnacle Bank that, at times, may exceed federally insured limits. Pinnacle Financial may lose all uninsured balances if one of the correspondent banks fails without warning. Pinnacle Financial has not experienced any losses in such accounts. Pinnacle Financial believes it is not exposed to any significant credit risk on cash and cash equivalents. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 4. Securities The amortized cost and fair value of securities available-for-sale and held-to-maturity at December 31, 2023 and 2022 are summarized as follows (in thousands): Amortized Cost Gross Gross Fair December 31, 2023 Securities available-for-sale: U.S Treasury securities $ 907,990 $ 2 $ 14,580 $ 893,412 U.S. Government agency securities 284,607 — 21,877 262,730 Mortgage-backed securities 1,071,963 444 125,017 947,390 State and municipal securities 1,604,874 26,129 45,108 1,585,895 Asset-backed securities 201,577 338 10,280 191,635 Corporate notes and other 477,761 69 41,362 436,468 $ 4,548,772 $ 26,982 $ 258,224 $ 4,317,530 Securities held-to-maturity: U.S Treasury securities $ 90,309 $ — $ 3,840 $ 86,469 U.S. Government agency securities 364,769 — 19,187 345,582 Mortgage-backed securities 382,100 637 34,900 347,837 State and municipal securities 1,886,459 6,079 159,027 1,733,511 Asset-backed securities 198,418 — 14,228 184,190 Corporate notes and other 86,009 — 8,414 77,595 $ 3,008,064 $ 6,716 $ 239,596 $ 2,775,184 Allowance for credit losses - securities held-to-maturity (1,707) Securities held-to-maturity, net of allowance for credit losses $ 3,006,357 December 31, 2022 Securities available-for-sale: U.S Treasury securities $ 196,151 $ — $ 1,967 $ 194,184 U.S. Government agency securities 432,475 — 36,318 396,157 Mortgage-backed securities 1,114,948 211 143,583 971,576 State and municipal securities 1,478,310 12,553 78,557 1,412,306 Asset-backed securities 134,386 — 16,983 117,403 Corporate notes and other 515,221 41 48,018 467,244 $ 3,871,491 $ 12,805 $ 325,426 $ 3,558,870 Securities held-to-maturity: U.S Treasury securities $ 92,738 $ — $ 6,472 $ 86,266 U.S. Government agency securities 374,255 — 27,860 346,395 Mortgage-backed securities 413,119 52 41,593 371,578 State and municipal securities 1,927,778 2,216 233,564 1,696,430 Asset-backed securities 184,241 — 18,573 165,668 Corporate notes and other 88,527 — 9,918 78,609 $ 3,080,658 $ 2,268 $ 337,980 $ 2,744,946 Allowance for credit losses - securities held-to-maturity (1,608) Securities held-to-maturity, net of allowance for credit losses $ 3,079,050 During the years ended December 31, 2022, 2020 and 2018, Pinnacle Financial transferred, at fair value, $1.1 billion, $873.6 million and $179.8 million, respectively, of securities from the available-for-sale portfolio to the held-to-maturity portfolio. The related net unrealized after tax losses of $1.5 million, net unrealized after tax gains of $69.0 million and net unrealized after tax losses of $2.2 million, respectively, remained in accumulated other comprehensive income (loss) and will be amortized over the remaining life of the securities, offsetting the related amortization of discount on the transferred securities. No gains or losses were recognized at the time of the transfer. At December 31, 2023, approximately $2.1 billion of Pinnacle Financial's investment portfolio was pledged to secure public funds and other deposits and securities sold under agreements to repurchase. At December 31, 2023, repurchase agreements comprised of secured borrowings totaled $209.5 million and were secured by $209.5 million of pledged U.S. government agency securities, mortgage-backed securities, municipal securities, asset backed securities and corporate debentures. As the fair value of securities pledged to secure repurchase agreements may decline, Pinnacle Financial regularly evaluates its need to pledge additional securities for the counterparty to remain adequately secured. The amortized cost and fair value of debt securities as of December 31, 2023 by contractual maturity is shown below. Actual maturities may differ from contractual maturities of mortgage-backed securities since the mortgages 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 Amortized Fair Amortized Fair Due in one year or less $ 16,744 $ 18,747 $ 44,911 $ 43,530 Due in one year to five years 204,619 202,103 406,769 383,312 Due in five years to ten years 549,251 504,648 100,801 94,025 Due after ten years 2,504,618 2,453,007 1,875,065 1,722,290 Mortgage-backed securities 1,071,963 947,390 382,100 347,837 Asset-backed securities 201,577 191,635 198,418 184,190 $ 4,548,772 $ 4,317,530 $ 3,008,064 $ 2,775,184 At December 31, 2023 and 2022, included in securities available-for-sale were the following investments with unrealized losses. The information below classifies these investments according to the term of the unrealized loss of less than twelve months or twelve months or longer (in thousands): Investments with an Unrealized Loss of Investments with an Total Investments Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized December 31, 2023 U.S. Treasury securities $ 693,621 $ 11,651 $ 192,500 $ 2,929 $ 886,121 $ 14,580 U.S. Government agency securities 14,989 11 247,648 21,866 262,637 21,877 Mortgage-backed securities 72,907 1,518 828,251 123,499 901,158 125,017 State and municipal securities 185,108 908 449,212 44,200 634,320 45,108 Asset-backed securities 42,207 254 122,469 10,026 164,676 10,280 Corporate notes and other 12,679 7 403,882 41,355 416,561 41,362 Total temporarily-impaired securities $ 1,021,511 $ 14,349 $ 2,243,962 $ 243,875 $ 3,265,473 $ 258,224 December 31, 2022 U.S. Treasury securities $ 192,188 $ 1,963 $ 1,997 $ 4 $ 194,185 $ 1,967 U.S. Government agency securities 46,062 2,224 350,094 34,094 396,156 36,318 Mortgage-backed securities 390,014 34,106 570,601 109,477 960,615 143,583 State and municipal securities 568,691 18,863 304,451 59,694 873,142 78,557 Asset-backed securities 513 5 116,442 16,978 116,955 16,983 Corporate notes and other 259,453 20,260 207,326 27,758 466,779 48,018 Total temporarily-impaired securities $ 1,456,921 $ 77,421 $ 1,550,911 $ 248,005 $ 3,007,832 $ 325,426 The applicable date for determining when securities are in an unrealized loss position is December 31, 2023 and 2022. As such, it is possible that a security had a market value less than its amortized cost on other days during the twelve-month periods ended December 31, 2023 and 2022, but is not in the "Investments with an Unrealized Loss of less than 12 months" category above. As shown in the tables above, at December 31, 2023 and 2022, Pinnacle Financial had unrealized losses of $258.2 million and $325.4 million on $3.3 billion and $3.0 billion, respectively, of securities. The unrealized losses associated with $1.1 billion, $873.6 million and $179.8 million of securities transferred from the available-for-sale portfolio to the held-to-maturity portfolio during the years ended December 31, 2022, 2020 and 2018, respectively, represent unrealized losses since the date of purchase, independent of the impact associated with changes in the cost basis upon transfer between portfolios. As described in Note 1. Summary of Significant Accounting Policies, for any securities classified as available-for-sale that are in an unrealized loss position at the balance sheet date, Pinnacle Financial assesses whether or not it intends to sell the security, or more-likely-than-not will be required to sell the security, before recovery of its amortized cost basis which would require a write-down to fair value through net income. Because Pinnacle Financial, as of December 31, 2023, did not intend to sell those securities that had an unrealized loss at December 31, 2023, and at December 31, 2023 it was not more-likely-than-not that Pinnacle Financial will be required to sell the securities before recovery of their amortized cost bases, which may be maturity, Pinnacle Financial has determined that no write-down is necessary. In addition, Pinnacle Financial evaluates whether any portion of the decline in fair value is the result of credit deterioration, which would require the recognition of an allowance for credit losses. Such evaluations consider the extent to which the amortized cost of the security exceeds its fair value, changes in credit ratings and any other known adverse conditions related to the specific security. The unrealized losses associated with securities at December 31, 2023 are driven by changes in interest rates and are not due to the credit quality of the securities, and accordingly, no allowance for credit losses is considered necessary related to available-for-sale securities at December 31, 2023. These securities will continue to be monitored as a part of Pinnacle Financial's ongoing evaluation of credit quality. The allowance for credit losses on held-to-maturity securities is measured on a collective basis by major security type as described in Note 1. Summary of Significant Accounting Policies. Pinnacle Financial has a zero loss expectation for U.S. treasury securities in addition to U.S government agency securities and mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, and accordingly, no allowance for credit losses is estimated for these securities. Credit losses on held-to-maturity state and municipal securities and corporate notes and other securities are estimated using probability of default and loss given default models driven primarily by macroeconomic factors over a reasonable and supportable period of twenty-four months with an eight month reversion to average loss factors. The allowance for credit losses on held-to-maturity securities totaled $1.7 million and $1.6 million, at December 31, 2023 and 2022, respectively. Pinnacle Financial utilizes bond credit ratings assigned by third party ratings agencies to monitor the credit quality of debt securities held-to-maturity. At December 31, 2023, all debt securities classified as held-to-maturity were rated A or higher by the ratings agencies. Updated credit ratings are obtained as they become available from the ratings agencies. Periodically, available-for-sale securities may be sold or the composition of the portfolio realigned to improve yields, quality or marketability, to implement changes in investment or asset/liability strategy, including maintaining collateral requirements and raising funds for liquidity purposes or in preparation of 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, and to improve yields during the years ended December 31, 2023, 2022 and 2021, available-for-sale securities of approximately $312.6 million, $29.5 million and $37.5 million, respectively, were sold, resulting in gross realized gains of $321,000, $292,000 and $769,000, and gross realized losses of $20.0 million, $136,000 and $10,000, respectively. Pinnacle Financial has entered into various fair value hedging transactions to mitigate the impact of changing interest rates on the fair values of available for sale securities. See Note 14. Derivative Instruments for disclosure of the gains and losses recognized on derivative instruments and the cumulative fair value hedging adjustments to the carrying amount of the hedged securities. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Note 5. Loans and Allowance for Credit Losses For financial reporting purposes, Pinnacle Financial classifies its loan portfolio based on the underlying collateral utilized to secure each loan. This classification is consistent with those utilized in the Quarterly Report of Condition and Income filed by Pinnacle Bank with the Federal Deposit Insurance Corporation (FDIC). Pinnacle Financial uses the following loan categories for presentation of loan balances and the related allowance for credit losses on loans: • Owner occupied commercial real estate mortgage loans - Owner occupied commercial real estate mortgage loans are secured by commercial office buildings, industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. For such loans, repayment is largely dependent upon the operation of the borrower's business. • Non-owner occupied commercial real estate loans - These loans represent investment real estate loans secured by office buildings, industrial buildings, warehouses, retail buildings, and multifamily residential housing. Repayment is primarily dependent on lease income generated from the underlying collateral. • Consumer real estate mortgage loans - Consumer real estate mortgage loans consist primarily of loans secured by 1-4 family residential properties, including home equity lines of credit. Repayment is primarily dependent on the personal cash flow of the borrower. • Construction and land development loans - Construction and land development loans include loans where the repayment is dependent on the successful completion and eventual sale, refinance or operation of the related real estate project. Construction and land development loans include 1-4 family construction projects and commercial construction endeavors such as warehouses, apartments, office and retail space and land acquisition and development. • Commercial and industrial loans - Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. These loans are generally secured by equipment, inventory, and accounts receivable of the borrower and repayment is primarily dependent on business cash flows. Loans granted under the Paycheck Protection Program (PPP), which are fully guaranteed by the SBA, are included in this category. • Consumer and other loans - Consumer and other loans include all loans issued to individuals not included in the consumer real estate mortgage classification. Examples of consumer and other loans are automobile loans, consumer credit cards and loans to finance education, among others. Many consumer loans are unsecured. Repayment is primarily dependent on the personal cash flow of the borrower. Loans at December 31, 2023 and 2022 were as follows (in thousands): December 31, 2023 December 31, 2022 Commercial real estate: Owner-occupied $ 4,044,896 $ 3,587,257 Non-owner occupied 7,535,494 6,542,619 Consumer real estate – mortgage 4,851,531 4,435,046 Construction and land development 4,041,081 3,679,498 Commercial and industrial 11,666,691 10,241,362 Consumer and other 536,398 555,823 Subtotal $ 32,676,091 $ 29,041,605 Allowance for credit losses (353,055) (300,665) Loans, net $ 32,323,036 $ 28,740,940 Commercial loans receive risk ratings by the assigned financial advisor subject to validation by Pinnacle Financial's independent loan review department. Risk ratings are categorized as pass, special mention, substandard, substandard-nonaccrual or doubtful-nonaccrual. Pass rated loans include multiple ratings categories representing varying degrees of risk attributes lesser than those of the other defined risk categories further described below. Pinnacle Financial believes its categories follow those used by Pinnacle Bank's primary regulators. At December 31, 2023, approximately 79.2% of Pinnacle Financial's loan portfolio was analyzed as a commercial loan type with a specifically assigned risk rating. Consumer loans and small business loans are generally not assigned an individual risk rating but are evaluated as either accrual or nonaccrual based on the performance of the individual loans. However, certain consumer real estate-mortgage loans and certain consumer and other loans receive a specific risk rating due to the loan proceeds being used for commercial purposes even though the collateral may be of a consumer loan nature. Consumer loans that have been placed on nonaccrual but have not otherwise been assigned a risk rating are believed by management to share risk characteristics with loans rated substandard-nonaccrual and have been presented as such in Pinnacle Financial's risk rating disclosures. Risk ratings are subject to continual review by a financial advisor and a senior credit officer. At least annually, Pinnacle Financial's credit procedures require every risk rated loan of $1.5 million or more be subject to a formal credit risk review process. Each loan's risk rating is also subject to review by Pinnacle Financial's independent loan review department, which reviews a substantial portion of Pinnacle Financial's risk rated portfolio annually. Included in the coverage are independent reviews of loans in targeted higher-risk portfolio segments such as certain commercial and industrial loans, land loans and/or loan types in certain geographies. Following are the definitions of the risk rating categories used by Pinnacle Financial. Pass rated loans include all credits other than those included within these categories: • Special mention loans have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in Pinnacle Financial's credit position at some future date. • Substandard loans are inadequately protected by the current net worth and financial capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize collection of the debt. Substandard loans are characterized by the distinct possibility that Pinnacle Financial could sustain some loss if the deficiencies are not corrected. • Substandard-nonaccrual loans are substandard loans that have been placed on nonaccrual status. • Doubtful-nonaccrual loans have all the characteristics of substandard-nonaccrual loans with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The table below presents loan balances classified within each risk rating category by primary loan type and based on year of origination or most recent renewal as of December 31, 2023 (in thousands): December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate- owner occupied Pass $ 785,834 $ 1,123,425 $ 871,389 $ 502,260 $ 267,595 $ 357,339 $ 56,680 $ 3,964,522 Special Mention 1,595 37,324 5,300 2,252 5,306 4,701 — 56,478 Substandard (1) 5,528 9,331 3,262 1,145 568 610 — 20,444 Substandard-nonaccrual 1,781 615 686 53 — 317 — 3,452 Doubtful-nonaccrual — — — — — — — — Total Commercial real estate - owner occupied $ 794,738 $ 1,170,695 $ 880,637 $ 505,710 $ 273,469 $ 362,967 $ 56,680 $ 4,044,896 Current period gross charge-offs $ — — — — — — — $ — Commercial real estate- Non-owner occupied Pass $ 1,304,109 $ 2,682,275 $ 1,737,275 $ 713,979 $ 505,767 $ 370,420 $ 107,841 $ 7,421,666 Special Mention — 30,229 — 6,745 216 5,335 — 42,525 Substandard (1) 25,723 2,969 — — 1,195 73 — 29,960 Substandard-nonaccrual — 153 40,180 — — 489 521 41,343 Doubtful-nonaccrual — — — — — — — — Total Commercial real estate - Non-owner occupied $ 1,329,832 $ 2,715,626 $ 1,777,455 $ 720,724 $ 507,178 $ 376,317 $ 108,362 $ 7,535,494 Current period gross charge-offs $ — — — — — — — $ — Consumer real estate – mortgage Pass $ 573,120 $ 976,006 $ 1,056,720 $ 448,420 $ 207,790 $ 318,505 $ 1,253,091 $ 4,833,652 Special Mention — — — — — — — — Substandard (1) — — — — — — — — Substandard-nonaccrual 688 2,265 2,951 2,525 5,265 3,671 514 17,879 Doubtful-nonaccrual — — — — — — — — Total Consumer real estate – mortgage $ 573,808 $ 978,271 $ 1,059,671 $ 450,945 $ 213,055 $ 322,176 $ 1,253,605 $ 4,851,531 Current period gross charge-offs $ — (225) (91) (6) (89) (472) — $ (883) Construction and land development Pass $ 1,153,137 $ 1,930,062 $ 884,060 $ 12,102 $ 5,580 $ 6,369 $ 41,886 $ 4,033,196 Special Mention 2,728 — — 4,467 — — — 7,195 Substandard (1) — — — — — 82 — 82 Substandard-nonaccrual — 608 — — — — — 608 Doubtful-nonaccrual — — — — — — — — Total Construction and land development $ 1,155,865 $ 1,930,670 $ 884,060 $ 16,569 $ 5,580 $ 6,451 $ 41,886 $ 4,041,081 Current period gross charge-offs $ — — — — — (3) — $ (3) December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial and industrial Pass $ 3,778,326 $ 2,103,473 $ 1,127,096 $ 325,176 $ 215,158 $ 142,806 $ 3,753,575 $ 11,445,610 Special Mention 11,125 22,806 12,457 532 144 1,847 45,025 93,936 Substandard (1) 10,142 2,243 25,311 145 359 9,028 60,986 108,214 Substandard-nonaccrual 10,436 4,193 1,583 409 359 735 1,215 18,930 Doubtful-nonaccrual — — — 1 — — — 1 Total Commercial and industrial $ 3,810,029 $ 2,132,715 $ 1,166,447 $ 326,263 $ 216,020 $ 154,416 $ 3,860,801 $ 11,666,691 Current period gross charge-offs $ (3,428) (24,114) (13,857) (3,309) (111) (455) (15,268) $ (60,542) Consumer and other Pass $ 136,809 $ 28,774 $ 66,126 $ 37,015 $ 541 $ 656 $ 266,402 $ 536,323 Special Mention — — — — — — — — Substandard (1) — — — — — — — — Substandard-nonaccrual — — — — — — 75 75 Doubtful-nonaccrual — — — — — — — — Total Consumer and other $ 136,809 $ 28,774 $ 66,126 $ 37,015 $ 541 $ 656 $ 266,477 $ 536,398 Current period gross charge-offs $ (151) (629) (6,377) (2,808) (235) (110) (4,987) $ (15,297) Total loans Pass $ 7,731,335 $ 8,844,015 $ 5,742,666 $ 2,038,952 $ 1,202,431 $ 1,196,095 $ 5,479,475 $ 32,234,969 Special Mention 15,448 90,359 17,757 13,996 5,666 11,883 45,025 200,134 Substandard (1) 41,393 14,543 28,573 1,290 2,122 9,793 60,986 158,700 Substandard-nonaccrual 12,905 7,834 45,400 2,987 5,624 5,212 2,325 82,287 Doubtful-nonaccrual — — — 1 — — — 1 Total loans $ 7,801,081 $ 8,956,751 $ 5,834,396 $ 2,057,226 $ 1,215,843 $ 1,222,983 $ 5,587,811 $ 32,676,091 Current period gross charge-offs $ (3,579) $ (24,968) $ (20,325) $ (6,123) $ (435) $ (1,040) $ (20,255) $ (76,725) (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 loan modifications made to borrowers experiencing financial difficulty. Potential problem loans, which are not included in nonaccrual loans, amounted to approximately $127.4 million at December 31, 2023, compared to $53.8 million at December 31, 2022. The table below presents the aging of past due balances by loan segment at December 31, 2023 and December 31, 2022 (in thousands): 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans December 31, 2023 Commercial real estate: Owner-occupied $ 1,671 $ 507 $ 3,398 $ 5,576 $ 4,039,320 $ 4,044,896 Non-owner occupied 40,577 489 153 41,219 7,494,275 7,535,494 Consumer real estate – mortgage 21,585 1,352 10,824 33,761 4,817,770 4,851,531 Construction and land development 621 28 608 1,257 4,039,824 4,041,081 Commercial and industrial 14,197 28,221 16,890 59,308 11,607,383 11,666,691 Consumer and other 5,286 1,868 1,496 8,650 527,748 536,398 Total $ 83,937 $ 32,465 $ 33,369 $ 149,771 $ 32,526,320 $ 32,676,091 December 31, 2022 Commercial real estate: Owner-occupied $ 2,112 $ 615 $ 1,139 $ 3,866 $ 3,583,391 $ 3,587,257 Non-owner occupied 359 48 1,681 2,088 6,540,531 6,542,619 Consumer real estate – mortgage 13,635 83 9,094 22,812 4,412,234 4,435,046 Construction and land development 221 102 130 453 3,679,045 3,679,498 Commercial and industrial 15,457 13,713 9,428 38,598 10,202,764 10,241,362 Consumer and other 4,056 1,688 746 6,490 549,333 555,823 Total $ 35,840 $ 16,249 $ 22,218 $ 74,307 $ 28,967,298 $ 29,041,605 The following table details the changes in the allowance for credit losses on loans from December 31, 2020 to December 31, 2021 to December 31, 2022 to December 31, 2023 by loan classification and the allocation of allowance for credit losses (in thousands): Commercial real estate - owner occupied Commercial real estate - non-owner occupied Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Total Allowance for Credit Losses: Balance at December 31, 2020 $ 23,298 $ 79,132 $ 33,304 $ 42,408 $ 98,423 $ 8,485 $ 285,050 Charged-off loans (1,420) (786) (632) (367) (46,213) (5,578) (54,996) Recovery of previously charged-off loans 1,609 969 2,288 372 7,485 3,550 16,273 Provision for credit losses on loans (3,869) (20,811) (2,856) (12,984) 52,645 4,781 16,906 Balance at December 31, 2021 $ 19,618 $ 58,504 $ 32,104 $ 29,429 $ 112,340 $ 11,238 $ 263,233 Charged-off loans (1,413) (185) (651) (150) (39,020) (12,757) (54,176) Recovery of previously charged-off loans 2,082 187 1,512 471 15,687 7,690 27,629 Provision for credit losses on loans 6,330 (18,027) 3,571 6,364 55,346 10,395 63,979 Balance at December 31, 2022 $ 26,617 $ 40,479 $ 36,536 $ 36,114 $ 144,353 $ 16,566 $ 300,665 Charged-off loans — — (883) (3) (60,542) (15,297) (76,725) Recovery of previously charged-off loans 76 1,632 2,114 338 15,556 8,403 28,119 Provision for credit losses on loans 1,997 15,576 33,587 2,693 48,845 (1,702) 100,996 Balance at December 31, 2023 $ 28,690 $ 57,687 $ 71,354 $ 39,142 $ 148,212 $ 7,970 $ 353,055 The adequacy of the allowance for credit losses on loans is reviewed by Pinnacle Financial's management on a quarterly basis. This assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance. The level of the allowance is based upon management's evaluation of historical default and loss experience, current and projected economic conditions, asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers' ability to repay the loan (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. The level of the allowance for credit losses on loans maintained by management is believed adequate to absorb all expected future losses inherent in the loan portfolio at the balance sheet date. The allowance is increased by provisions charged to expense and decreased by charge-offs, net of recoveries of amounts previously charged-off. During the second quarter of 2023, Pinnacle Financial implemented updated CECL models in an effort to ensure that risk in its portfolio continues to be adequately captured given the uncertain state of the economy. CECL methodology requires the allowance for credit losses to be measured on a collective basis for pools of loans with similar risk characteristics, and for loans that do not share similar risk characteristics with the collectively evaluated pools, evaluations are performed on an individual basis. For commercial real estate, consumer real estate, construction and land development, and commercial and industrial loans, Pinnacle Financial primarily utilizes a probability of default and loss given default modeling approach. These models utilize historical correlations between default and loss experience, loan level attributes, and certain macroeconomic factors as determined through a statistical regression analysis. Segments using this approach incorporate various economic drivers. Under the current model, commercial and industrial loans consider gross domestic product (GDP), the consumer credit index and the national unemployment rate, commercial construction loans and commercial real estate loans including nonowner occupied and owner occupied commercial real estate loans consider the national unemployment rate and the commercial property and commercial real estate price indices, construction and land development loans consider the commercial property, consumer credit and home price indices dependent upon their use as residential versus commercial, consumer real estate loans consider the home price index and household debt ratio and other consumer loans consider the national unemployment rate and the household financial obligations ratio. Under the previous model, all loan segments considered changes in the national unemployment rate. In addition to the national unemployment rate, GDP and the three-month treasury rate were considered for owner occupied commercial real estate loans, the commercial real estate price index and the five-year treasury rate were considered for construction loans, and the three-month treasury rate was considered for commercial and industrial loans. A third-party provides management with quarterly macroeconomic scenarios, which management evaluates to determine the best estimate of the expected losses. For the consumer and other loan segment, a non-statistical approach based on historical charge off rates is utilized. The implementation of the new model including the addition of, and changes to, macroeconomic factors considered had no material effect on the overall allowance for credit losses. Losses are predicted over a period of time determined to be reasonable and supportable, and at the end of the reasonable and supportable period losses are reverted to long term historical averages. The reasonable and supportable period and reversion period are re-evaluated each quarter by Pinnacle Financial and are dependent on the current economic environment among other factors. A reasonable and supportable period of 15 months was utilized for all loan segments at December 31, 2023 as compared to 24 months at December 31, 2022, followed by, in each case, a 12 month straight line reversion to long term averages at each measurement date. The estimated loan losses for all loan segments are adjusted for changes in qualitative factors not inherently considered in the quantitative analyses. These adjustments are based in part on quarterly trend assessments compared to historical experience in portfolio concentrations, policy exceptions, associate retention, independent loan review results, collateral considerations, risk ratings, competition and peer group credit quality trends. The qualitative allowance allocation, as determined by the processes noted above, is increased or decreased for each loan segment based on the assessment of these various qualitative factors. Loans that do not share similar risk characteristics with the collectively evaluated pools are evaluated on an individual basis and are excluded from the collectively evaluated pools. Individual evaluations are generally performed for loans greater than $1.0 million which have experienced significant credit deterioration. Such loans are evaluated for credit losses based on either discounted cash flows or the fair value of collateral. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, as of December 31, 2023 and December 31, 2022 (in thousands): Real Estate Business Assets Other Total December 31, 2023 Commercial real estate: Owner-occupied $ 22,284 $ — $ — $ 22,284 Non-owner occupied 69,577 — — 69,577 Consumer real estate – mortgage 20,389 — — 20,389 Construction and land development 668 — — 668 Commercial and industrial — 31,625 552 32,177 Consumer and other — — — — Total $ 112,918 $ 31,625 $ 552 $ 145,095 December 31, 2022 Commercial real estate: Owner-occupied $ 10,804 $ — $ — $ 10,804 Non-owner occupied 4,795 — — 4,795 Consumer real estate – mortgage 22,466 — — 22,466 Construction and land development 299 — — 299 Commercial and industrial — 12,327 — 12,327 Consumer and other — — 2 2 Total $ 38,364 $ 12,327 $ 2 $ 50,693 The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. Pinnacle Financial uses a probability of default/loss given default model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, a loan modification will be granted by providing principal forgiveness on certain loans. When principal forgiveness is provided, the amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. In some cases, a loan restructuring will result in providing multiple types of modifications. Typically, one type of modification, such as a payment delay or term extension, is granted initially. If the borrower continues to experience financial difficulty, another modification, such as principal forgiveness or an interest rate reduction, may be granted. Additionally, multiple types of modifications may be made on the same loan within the current reporting period. Such a combination is at least two of the following: a payment delay, term extension, principal forgiveness and interest rate reduction. Upon determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. The following table shows the amortized cost basis of the loans modified to borrowers experiencing financial difficulty at December 31, 2023, disaggregated by class of loans and type of modification granted and describes the financial effect of the modifications made to borrowers experiencing financial difficulty (in thousands): December 31, 2023 Payment Delay Term Extension Combination¹ Total % Total % Total % Total Commercial real estate: Owner-occupied — — % 5,528 0.14 % — — % 5,528 Non-owner occupied 12,244 0.16 % — — % 13,479 0.18 % 25,723 Consumer real estate – mortgage — — % — — % — — % — Construction and land development — — % — — % — — % — Commercial and industrial — — % 3,226 0.03 % — — % 3,226 Consumer and other — — % — — % — — % — 12,244 8,754 13,479 34,477 ¹ The combination includes payment delay, term extension, and an interest rate reduction December 31, 2023 Financial Effect Payment Delay: Non-owner occupied Implemented interest-only payments until loan maturity Term Extension: Owner Occupied Added a weighted average 0.46 years to the term of the modified loans Commercial and industrial Added a weighted average 0.25 years to the term of the modified loans Combination: Non-owner Occupied Reduced weighted average contractual interest rate by 0.55%, added a weighted average 2 years to the term, and implemented an alternative payment schedule until loan maturity Commercial and industrial loans totaling $3.2 million included in the table above were subsequently past due and had a payment default in the twelve months following modification. Pinnacle Financial charged off $357,000 of previously modified commercial and industrial loans during the year ended December 31, 2023. The table below presents the amortized cost basis of loans on nonaccrual status and loans past due 90 or more days and still accruing interest at December 31, 2023 and 2022. Also presented is the balance of loans on nonaccrual status at December 31, 2023 and 2022 for which there was no related allowance for credit losses recorded (in thousands): December 31, 2023 December 31, 2022 Total nonaccrual loans Nonaccrual loans with no allowance for credit losses Loans past due 90 or more days and still accruing Total nonaccrual loans Nonaccrual loans with no allowance for credit losses Loans past due 90 or more days and still accruing Commercial real estate: Owner-occupied $ 3,452 $ 122 $ — $ 1,882 $ — $ — Non-owner occupied 41,343 40,669 — 2,244 1,040 — Consumer real estate – mortgage 17,879 — 781 17,330 — — Construction and land development 608 — — 231 — — Commercial and industrial 18,931 519 3,802 16,345 8,003 3,663 Consumer and other 75 — 1,421 84 — 743 Total $ 82,288 $ 41,310 $ 6,004 $ 38,116 $ 9,043 $ 4,406 Pinnacle Financial's policy is the accrual of interest income will be discontinued when (1) there is a significant deterioration in the financial condition of the borrower and full repayment of principal and interest is not expected or (2) the principal or interest is more than 90 days past due, unless the loan is both well secured and in the process of collection. As such, at the date loans are placed on nonaccrual status, Pinnacle Financial reverses all previously accrued interest income against current year earnings. Pinnacle Financial's policy is once a loan is placed on nonaccrual status each subsequent payment is reviewed on a case-by-case basis to determine if the payment should be applied to interest or principal pursuant to regulatory guidelines. Pinnacle Financial recognized no interest income through cash payments received on nonaccrual loans during the years ended December 31, 2023, 2022, and 2021. Had these nonaccruing loans been on accruing status, interest income would have been higher by $4.5 million, $1.6 million and $1.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. Approximately $7.9 million and $6.4 million of nonaccrual loans as of December 31, 2023 and 2022, respectively, were performing pursuant to their contractual terms at those dates. 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 had 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 December 31, 2023 with the comparative exposures for December 31, 2022 (in thousands): At December 31, 2023 Outstanding Principal Balances Unfunded Commitments Total exposure Total Exposure at December 31, 2022 Lessors of nonresidential buildings $ 4,674,176 $ 1,242,159 $ 5,916,335 $ 7,058,045 Lessors of residential buildings 2,028,622 1,150,419 3,179,041 3,725,186 New housing for-sale builders 577,090 819,563 1,396,653 1,763,089 Music publishers 787,407 432,374 1,219,781 1,127,636 Total $ 8,067,295 $ 3,644,515 $ 11,711,810 $ 13,673,956 Among other data, Pinnacle Financial monitors two ratios regarding construction and commercial real estate lending as a part of its concentration management process. 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 December 31, 2023 and 2022, Pinnacle Bank's construction and land development loans as a percentage of total risk-based capital were 84.2% and 85.9%, 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 259.0% and 249.6% as of December 31, 2023 and 2022, 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 commercial real estate and multifamily 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. Pinnacle Bank was within the 100% and 300% guidelines as of December 31, 2023 and has established what it believes to be appropriate controls to monitor its lending in these areas as it aims to keep the level of these loans below the 100% and 300% thresholds. At December 31, 2023, Pinnacle Financial had granted loans and other extensions of credit amounting to approximately $37.7 million to current directors, executive officers, and their related interests, of which $34.7 million had been drawn upon. At December 31, 2022, Pinnacle Financial had granted loans and other extensions of credit amounting to approximately $20.9 million to directors, executive officers, and their related interests, of which approximately $16.0 million had been drawn upon. All loans to directors, executive officers, and their related interests were performing in accordance with contractual terms at December 31, 2023 and 2022. Loans Held for Sale At December 31, 2023, Pinnacle Financial had approximately $9.3 million in commercial loans held for sale compared to $21.1 million at December 31, 2022. These include 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. Also included are commercial loans originated for sale to BHG as part of BHG's alternative financing portfolio as more fully described in Note 2. Equity Method Investment. At December 31, 2023, Pinnacle Financial had approximately $20.2 million of mortgage loans held-for-sale compared to approximately $12.9 million at December 31, 2022. Total mortgage loan volumes sold during the year ended December 31, 2023 were approximately $653.9 million compared to approximately $826.2 million and $1.6 billion for the years ended December 31, 2022 and 2021, respectively. During the year ended December 31, 2023, Pinnacle Financial recognized $6.5 million in gains on the sale of these loans, net of commissions paid, compared to $7.3 million and $32.4 million, respectively, during the years ended December 31, 2022 and 2021. 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. |
Premises and Equipment and Leas
Premises and Equipment and Lease Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Premises and Equipment and Lease Commitments [Abstract] | |
Premises and Equipment and Lease Commitments | Note 6. Premises and Equipment and Lease Commitments Premises and equipment at December 31, 2023 and 2022 are summarized as follows (in thousands): Range of Useful Lives 2023 2022 Land Not applicable $ 36,528 $ 71,741 Buildings 15 years - 30 years 103,919 206,434 Leasehold improvements 14 years - 35 years 74,606 62,209 Furniture and equipment 3 years - 20 years 183,919 144,979 398,972 485,363 Less: accumulated depreciation and amortization 142,095 157,478 $ 256,877 $ 327,885 Depreciation and amortization expense was approximately $30.2 million, $25.9 million, and $22.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. Pinnacle Financial has entered into various operating leases, primarily for office space and branch facilities. The leases are classified as operating or finance leases at commencement. Right-of-use assets representing the right to use the underlying asset and lease liabilities representing the obligation to make future lease payments are recognized on the balance sheet within other assets other liabilities During the year ended December 31, 2023, Pinnacle Bank consummated a sale-leaseback transaction pursuant to which it sold a combined 49 properties to two unaffiliated entities, PNB TN Portfolio Owner LLC and PNB Portfolio Owner, LLC (each, a "Purchaser" and collectively, the "Purchasers"), each of whom is an affiliate of Oak Street Real Estate Capital, for an aggregate cash purchase price of $198.2 million and concurrently agreed to separately lease each of those properties for an initial term of 14.5 years, with two five (5) year renewal options that Pinnacle Bank may exercise to extend the term of any of the leases. The pre-tax, net gain recorded associated with the sale of these 49 properties was $85.7 million, after deducting transaction-related expenses. The aggregate annual lease expense associated with these properties will be approximately $17.0 million for the first twelve months of the lease term, with each lease including a 1.9% annual rent escalation during the initial term, and a 2.0% annual rent escalation during each of the two five-year renewal terms, if exercised. The proceeds of the sale-leaseback transaction have been retained in Pinnacle Bank's cash accounts at the Federal Reserve. Right-of-use assets and lease liabilities relating to Pinnacle Financial's operating and finance leases are as follows at December 31, 2023 and 2022 (in thousands): December 31, 2023 December 31, 2022 Right-of-use assets: Operating leases $ 296,272 $ 126,767 Finance leases 1,092 1,318 Total right-of-use assets $ 297,364 $ 128,085 Lease liabilities: Operating leases $ 304,944 $ 133,108 Finance leases 2,146 2,458 Total lease liabilities $ 307,090 $ 135,566 The total lease cost related to operating leases and short term leases is recognized on a straight-line basis over the lease term. For finance leases, right-of-use assets are amortized on a straight-line basis over the lease term and interest imputed on the lease liability is recognized using the effective interest method. The components of Pinnacle Financial's total lease cost were as follows for the years ended December 31, 2023, 2022 and 2021 (in thousands): For the years ended December 31, 2023 2022 2021 Operating lease cost $ 30,913 $ 18,292 $ 15,696 Short-term lease cost 349 401 297 Finance lease cost: Interest on lease liabilities 167 189 208 Amortization of right-of-use asset 226 226 226 Sublease income (1,365) (1,357) (1,309) Net lease cost $ 30,290 $ 17,751 $ 15,118 The weighted average remaining lease term and weighted average discount rate for operating and finance leases at December 31, 2023 and 2022 are as follows: December 31, 2023 December 31, 2022 Weighted average remaining lease term Operating leases 12.00 years 10.44 years Finance leases 4.84 years 5.84 years Weighted average discount rate Operating leases 4.29 % 3.11 % Finance leases 7.22 % 7.22 % Cash flows related to operating and finance leases during the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands): For the years ended December 31, 2023 2022 2021 Operating cash flows related to operating leases $ 28,614 $ 16,956 $ 14,712 Operating cash flows related to finance leases $ 167 $ 189 $ 208 Financing cash flows related to finance leases $ 311 $ 281 $ 261 Future undiscounted lease payments for operating and finance leases with initial terms of more than 12 months are as follows at December 31, 2023 (in thousands): Operating Leases Finance Leases 2024 $ 36,814 $ 527 2025 35,058 527 2026 32,687 527 2027 31,623 527 2028 31,133 439 Thereafter 230,286 — Total undiscounted lease payments 397,601 2,547 Less: imputed interest (92,657) (401) Net lease liabilities $ 304,944 $ 2,146 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Interest-Bearing Deposit Liabilities [Abstract] | |
Deposits | Note 7. Deposits At December 31, 2023, the scheduled maturities of time deposits are as follows (in thousands): 2024 $ 4,093,153 2025 590,695 2026 133,782 2027 14,168 2028 8,955 Thereafter — $ 4,840,753 At December 31, 2023 and 2022, approximately $1.8 billion and $1.3 billion, respectively, of time deposits had been issued in denominations of $250,000 or greater. At December 31, 2023 and 2022, Pinnacle Financial had $2.5 million and $1.4 million, respectively, of deposit accounts in overdraft status that have been reclassified to loans on the accompanying consolidated balance sheets. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2023 | |
Advance from Federal Home Loan Bank [Abstract] | |
Federal Home Loan Bank Advances | Note 8. Federal Home Loan Bank Advances Pinnacle Bank is a member of the FHLB and as a result, is eligible for advances from the FHLB pursuant to the terms of various borrowing agreements, which assist Pinnacle Bank in the funding of its home mortgage and commercial real estate loan portfolios. Pinnacle Bank has pledged certain qualifying residential mortgage loans and, pursuant to a blanket lien, certain qualifying commercial mortgage loans with an aggregate carrying value of approximately $7.8 billion as collateral under the borrowing agreements with the FHLB. At December 31, 2023 and 2022, Pinnacle Bank had outstanding advances from the FHLB totaling approximately $2.1 billion and $464.4 million, respectively. The scheduled maturities of FHLB advances at December 31, 2023 and interest rates are as follows (in thousands): Scheduled maturities Weighted average interest rates (1) 2024 $ — — % 2025 366,250 4.97 % 2026 162,500 4.00 % 2027 237,500 4.14 % 2028 1,375,000 3.97 % Thereafter 12 2.75 % 2,141,262 Deferred costs (1,070) Fair value hedging adjustment (2,023) Total Federal Home Loan Bank advances $ 2,138,169 Weighted average interest rate 4.17 % (1) Some FHLB advances include variable interest rates and could increase in the future. The table reflects rates in effect as of December 31, 2023. At December 31, 2023, Pinnacle Bank had accommodations which allow it to borrow from the Federal Reserve Bank of Atlanta's discount window and purchase Federal funds from several of its correspondent banks on an overnight basis at prevailing overnight market rates. These accommodations are subject to various restrictions as to their term and availability, and in most cases, must be repaid within less than a month. At December 31, 2023, Pinnacle Bank had approximately $2.8 billion in borrowing availability with the FHLB, $6.8 billion with the Federal Reserve Bank discount window, and approximately $105.0 million with other correspondent banks with whom Pinnacle Bank has arranged lines of credit. At December 31, 2023, Pinnacle Bank was not carrying any balances with the Federal Reserve Bank discount window or correspondent banks under these arrangements. |
Other borrowings
Other borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Subordinated Debt [Abstract] | |
Subordinated Borrowings Disclosure | Note 9. Other Borrowings Pinnacle Financial has twelve wholly-owned subsidiaries that are statutory business trusts created for the exclusive purpose of issuing 30-year capital trust preferred securities, and Pinnacle Financial has entered into certain other subordinated debt agreements. These instruments are outlined below as of December 31, 2023 (in thousands): Name Date Established Maturity Total Debt Outstanding Interest Rate at December 31, 2023 Coupon Structure Trust preferred securities Pinnacle Statutory Trust I December 29, 2003 December 30, 2033 $ 10,310 8.44 % 3-month SOFR + 2.80% (1) Pinnacle Statutory Trust II September 15, 2005 September 30, 2035 20,619 6.99 % 3-month SOFR + 1.40% (1) Pinnacle Statutory Trust III September 07, 2006 September 30, 2036 20,619 7.24 % 3-month SOFR + 1.65% (1) Pinnacle Statutory Trust IV October 31, 2007 September 30, 2037 30,928 8.50 % 3-month SOFR + 2.85% (1) BNC Capital Trust I April 03, 2003 April 15, 2033 5,155 8.91 % 3-month SOFR + 3.25% (1) BNC Capital Trust II March 11, 2004 April 07, 2034 6,186 8.51 % 3-month SOFR + 2.85% (1) BNC Capital Trust III September 23, 2004 September 23, 2034 5,155 8.06 % 3-month SOFR + 2.40% (1) BNC Capital Trust IV September 27, 2006 December 31, 2036 7,217 7.29 % 3-month SOFR + 1.70% (1) Valley Financial Trust I June 26, 2003 June 26, 2033 4,124 8.72 % 3-month SOFR + 3.10% (1) Valley Financial Trust II September 26, 2005 December 15, 2035 7,217 7.14 % 3-month SOFR + 1.49% (1) Valley Financial Trust III December 15, 2006 January 30, 2037 5,155 7.38 % 3-month SOFR + 1.73% (1) Southcoast Capital Trust III August 05, 2005 September 30, 2035 10,310 7.09 % 3-month SOFR + 1.50% (1) Subordinated Debt Pinnacle Financial Subordinated Notes September 11, 2019 September 15, 2029 300,000 4.13 % Fixed (2) Debt issuance costs and fair value adjustment (8,057) Total subordinated debt and other borrowings $ 424,938 (1) Rate transitioned to three month term SOFR plus a comparable tenor spread adjustment beginning after July 1, 2023 as three month LIBOR ceased to be published effective July 1, 2023. (2) Previously was to transition to three |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes Income tax expense attributable to continuing operations for each of the years ended December 31 is as follows (in thousands): 2023 2022 2021 Current tax expense : Federal $ 67,711 $ 104,141 $ 125,016 State 11,775 12,870 11,798 Total current tax expense 79,486 117,011 136,814 Deferred tax expense (benefit): Federal 67,446 15,082 (12,149) State 4,922 4,658 (83) Total deferred tax (benefit) expense 72,368 19,740 (12,232) Total income tax expense $ 151,854 $ 136,751 $ 124,582 Pinnacle Financial's income tax expense differs from the amounts computed by applying the Federal income tax statutory rate of 21% to income before income taxes. A reconciliation of the differences for each of the years in the three-year period ended December 31, 2023 is as follows (in thousands): 2023 2022 2021 Income tax expense at statutory rate $ 149,941 $ 146,474 $ 136,900 State excise tax expense, net of federal tax effect 13,191 13,847 9,255 Non-deductible executive compensation 5,186 5,481 2,149 Tax-exempt securities (21,663) (18,730) (15,243) Federal tax credits (5,238) (5,019) (4,712) Bank owned life insurance income (4,324) (4,599) (4,413) Bank owned life insurance surrender 8,572 — — Non-deductible FDIC assessment 5,361 2,331 1,697 Insurance premiums — (36) (273) Excess tax benefits associated with equity compensation (208) (3,027) (2,475) Other items 1,036 29 1,697 Income tax expense $ 151,854 $ 136,751 $ 124,582 Pinnacle Financial's effective tax rate differs from the Federal income tax rates primarily due to state excise tax expense, investments in bank-qualified tax-exempt municipal securities, tax benefits from Pinnacle Bank's real estate investment trust and municipal investment subsidiaries, and tax benefits associated with share-based compensation and bank owned life insurance offset in part by the limitation on deductibility of meals and entertainment expense, non-deductible FDIC insurance premiums and non-deductible executive compensation. The increase in the effective income tax rate in 2023 as compared to 2022 is primarily due to the restructuring of BOLI contracts resulting in restructuring charges totaling $7.2 million and surrender penalties totaling $9.1 million offset in part by the tax impact of the $29.0 million charge related to the FDIC special assessment to recover losses incurred by the Deposit Insurance Fund associated with the multiple high-profile bank failures which occurred in the first half of 2023. The components of deferred income taxes included in other assets in the accompanying consolidated balance sheets at December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 Deferred tax assets: Allowance for credit losses $ 86,911 $ 77,015 Loans 4,659 10,576 Insurance 784 817 Accrued liability for supplemental retirement agreements 7,005 7,595 Restricted stock and stock options 6,251 7,795 Securities 49,331 67,286 Lease liability 76,918 35,589 Other real estate owned 750 1,526 Net federal operating loss carryforward and credits 1,064 1,168 Annual incentive compensation 11,842 21,322 Partnership interests 13,541 31,559 Allowance for off balance sheet credit exposures 4,367 6,527 Tax credit investments — 8,282 FDIC special assessment 7,250 — Other deferred tax assets 2,532 3,267 Total deferred tax assets 273,205 280,324 2023 2022 Deferred tax liabilities: Depreciation and amortization 23,140 17,723 Core deposit and other intangible assets 6,087 9,070 Cash flow hedge 836 6,854 REIT dividends 2,604 2,338 FHLB related liabilities 125 328 Equity method investment 42 76 Right-of-use assets and other leasing transactions 74,068 33,157 Leases 67,711 35,547 Subordinated debt 1,412 1,662 Tax credit investments 7,614 — Other deferred tax liabilities 2,356 2,054 Total deferred tax liabilities 185,995 108,809 Net deferred tax assets $ 87,210 $ 171,515 At December 31, 2023, the Company had federal and state loss carryforwards resulting from acquisitions of approximately $4.8 million that expire at various dates from 2028 to 2034. 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. A reconciliation of the beginning and ending unrecognized tax benefit related to state uncertain tax positions for each of the years in the three-year period ended December 31, 2023 is as follows (in thousands): 2023 2022 2021 Balance at January 1, $ 15,752 $ 12,737 $ 9,658 Increases due to tax positions taken during the current year 642 3,721 3,647 Increases due to tax positions taken during a prior year — — — Decreases due to the lapse of the statute of limitations during the current year (1,340) (706) (568) Decreases due to settlements with the taxing authorities during the current year (6,248) — — Balance at December 31, $ 8,806 $ 15,752 $ 12,737 Pinnacle Financial's policy is to recognize interest and/or penalties related to income tax matters in income tax expense. Pinnacle Financial recognized $80,000 and $264,000 in interest and penalties related to income tax matters for the years ended December 31, 2023 and 2022, respectively. Pinnacle Financial recognized no interest and penalties for the year ended December 31, 2021. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 11. Commitments and Contingent Liabilities In the normal course of business, Pinnacle Financial has entered into off-balance sheet financial instruments which include commitments to extend credit (i.e., including unfunded lines of credit) and standby letters of credit. Commitments to extend credit are usually the result of lines of credit granted to existing borrowers under agreements that the total outstanding indebtedness will not exceed a specific amount during the term of the indebtedness. Typical borrowers are commercial concerns that use lines of credit to supplement their treasury management functions, thus their total outstanding indebtedness may fluctuate during any time period based on the seasonality of their business and the resultant timing of their cash flows. Other typical lines of credit are related to home equity loans granted to consumers. Commitments to extend credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. At December 31, 2023, these commitments amounted to $15.0 billion, of which approximately $1.8 billion related to home equity lines of credit. Standby letters of credit are generally issued on behalf of an applicant (customer) to a specifically named beneficiary and are the result of a particular business arrangement that exists between the applicant and the beneficiary. Standby letters of credit have fixed expiration dates and are usually for terms of two years or less unless terminated beforehand due to criteria specified in the standby letter of credit. A typical arrangement involves the applicant routinely being indebted to the beneficiary for such items as inventory purchases, insurance, utilities, lease guarantees or other third party commercial transactions. The standby letter of credit would permit the beneficiary to obtain payment from Pinnacle Financial under certain prescribed circumstances. Subsequently, Pinnacle Financial would then seek reimbursement from the applicant pursuant to the terms of the standby letter of credit. At December 31, 2023, these commitments amounted to $325.1 million. Pinnacle Financial 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 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 would only be reflected if drawn upon. 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 December 31, 2023 and 2022, Pinnacle Financial had accrued reserves of $17.5 million and $25.0 million, respectively, for the inherent risks associated with these off-balance sheet commitments. The provision for credit losses related to these unfunded commitments decreased $7.5 million during the year ended December 31, 2023 as compared to a $2.5 million increase during the year ended December 31, 2022. Various legal claims also arise from time to time in the normal course of business. In the opinion of management, the resolution of these routine claims outstanding at December 31, 2023 will not have a material impact on Pinnacle Financial's consolidated financial condition, operating results or cash flows. |
Salary Deferral Plans
Salary Deferral Plans | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Compensation Arrangements [Abstract] | |
Salary Deferral Plans | Note 12. Salary Deferral Plans Pinnacle Financial has a 401(k) retirement plan (the 401k Plan) covering all employees who elect to participate, subject to certain eligibility requirements. The 401(k) Plan allows employees to defer up to 50% of their salary subject to regulatory limitations with Pinnacle Financial matching 100% of the first 4% of employee self-directed contributions during 2023, 2022, and 2021. Pinnacle Financial's expense associated with the matching component of the plan for each of the years in the three-year period ended December 31, 2023 was approximately $15.3 million, $13.7 million and $11.1 million, respectively, and is included in the accompanying consolidated statements of operations in salaries and employee benefits expense. |
Stock Options, Restricted Share
Stock Options, Restricted Shares and Restricted Share Units | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Options and Restricted Shares and Restricted Share Units | Note 13. Stock Options and Restricted Shares Pinnacle Financial's Amended and Restated 2018 Omnibus Equity Incentive Plan (the "2018 Plan") permits Pinnacle Financial to reissue outstanding awards that are subsequently forfeited, settled in cash, withheld by Pinnacle Financial to cover withholding taxes or expire unexercised and returned to the 2018 Plan. At December 31, 2023, there were approximately 921,000 shares available for issuance under the 2018 Plan. Common Stock Options Upon the acquisition of CapitalMark Bank & Trust (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 December 31, 2023, there are no remaining options outstanding under any equity incentive plan of Pinnacle Financial including those that were granted under the CapitalMark Option Plan. A summary of stock option activity within the equity incentive plans during each of the years in the three-year period ended December 31, 2023 and information regarding expected vesting, contractual terms remaining, intrinsic values and other matters was as follows: Number Weighted-Average Exercise Price Weighted-Average Contractual Remaining Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2020 101,769 $ 23.46 Granted — — Stock options exercised (45,125) 22.18 Forfeited (497) 20.00 Outstanding at December 31, 2021 56,147 $ 24.51 Granted — — Stock options exercised (15,959) 23.28 Forfeited — — Outstanding at December 31, 2022 40,188 $ 25.00 Granted — — Stock options exercised (40,188) 25.00 Forfeited — — Outstanding at December 31, 2023 — $ — 0.00 $ — Options exercisable at December 31, 2023 — $ — 0.00 $ — . During 2023, 2022, and 2021, the aggregate intrinsic value of stock options exercised under Pinnacle Financial's equity incentive plans was $1.6 million, $1.0 million and $3.0 million, respectively, determined using the quoted price of Pinnacle Financial common stock as of the date of option exercise. There have been no options granted by Pinnacle Financial since 2008. All stock option awards granted by Pinnacle Financial were fully vested during 2013. Stock options granted under the CapitalMark Plan were fully vested at the time of acquisition. As such, there was no impact on the results of operations for stock-based compensation related to stock options for any year in the three-year period ended December 31, 2023, except for the tax impact recorded as a component of income tax expense upon exercise. Restricted Shares A summary of activity for unvested restricted share awards for the years ended December 31, 2023, 2022, and 2021 follows: Number Grant Date Weighted-Average Cost Unvested at December 31, 2020 594,669 $ 56.97 Shares awarded 249,641 77.00 Restrictions lapsed and shares released to associates/directors (193,846) 56.47 Shares forfeited (37,129) 62.79 Unvested at December 31, 2021 613,335 $ 64.93 Shares awarded 286,445 98.06 Restrictions lapsed and shares released to associates/directors (188,394) 64.53 Shares forfeited (35,775) 75.35 Unvested at December 31, 2022 675,611 $ 78.53 Shares awarded 269,025 71.84 Restrictions lapsed and shares released to associates/directors (206,956) 73.17 Shares forfeited (34,281) 75.84 Unvested at December 31, 2023 703,399 $ 77.68 Pinnacle Financial grants restricted share awards to associates (including certain members of executive management) and outside directors with time-based vesting criteria. The following tables outline restricted stock grants that were made by grant year, grouped by similar vesting criteria, during the three-year period ended December 31, 2023. The table below reflects the life-to-date activity for these awards: Grant Group (1) Vesting Shares Restrictions lapsed and shares released to participants Shares withheld Shares forfeited by participants (4) Shares unvested Time Based Awards 2021 Associates (2) 3 — 5 237,811 60,966 24,552 30,455 121,838 2022 Associates (2) 3 — 5 276,965 37,226 15,019 16,723 207,997 2023 Associates (2) 3 — 5 258,185 328 185 15,995 241,677 Outside Director Awards (3) 2021 Outside directors 1 11,830 10,222 1,608 — — 2022 Outside directors 1 9,480 7,740 1,740 — — 2023 Outside directors 1 10,840 — — — 10,840 (1) Groups include employees (referred to as associates above) and outside directors. When the restricted shares are awarded, a participant receives voting rights and forfeitable dividend rights with respect to the shares, but is not able to transfer the shares until the restrictions have lapsed. Once the restrictions lapse, the participant is taxed on the value of the award and may elect to sell some shares (or have Pinnacle Financial withhold some shares) to pay the applicable income taxes associated with the award. Alternatively, the recipient can pay the withholding taxes in cash. For time-based vesting restricted share awards, dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by Pinnacle Financial at the time of termination. For awards to Pinnacle Financial's directors, dividends are placed into escrow until the forfeiture restrictions on such shares lapse. (2) The forfeiture restrictions on these restricted share awards lapse in equal annual installments on the anniversary date of the grant. (3) Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapse on March 1, 2024 based on each individual board member meeting attendance goals for the various board and board committee meetings to which each member was scheduled to attend. (4) These shares represent forfeitures resulting from recipients whose employment or board membership was terminated during the life-to-date period ended December 31, 2023. 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. Compensation expense associated with the 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. Restricted Stock Unit Awards A summary of activity for unvested restricted stock unit awards for the years ended December 31, 2023, 2022, and 2021 follows: Number Grant Date Unvested at December 31, 2020 — $ — Restricted stock units awarded 56,864 71.21 Restrictions lapsed and underlying shares released to associates (128) 70.95 Restricted stock units forfeited (368) 70.95 Unvested at December 31, 2021 56,368 $ 71.22 Restricted stock units awarded 38,133 104.80 Restrictions lapsed and underlying shares released to associates (18,897) 71.24 Restricted stock units forfeited (1,621) 85.50 Unvested at December 31, 2022 73,983 $ 88.21 Restricted stock units awarded 70,716 70.25 Restrictions lapsed and underlying shares released to associates (34,465) 83.75 Restricted stock units forfeited (7,357) 78.83 Unvested at December 31, 2023 102,877 $ 78.03 Pinnacle Financial grants restricted stock units to its Named Executive Officers (NEOs) and leadership team members with time-based vesting criteria. Compensation expense associated with time-based vesting restricted stock unit awards is recognized over the time period that the restrictions associated with the awards lapse on a straight-line basis based on the total cost of the award. The following table outlines restricted stock unit grants that were made, grouped by similar vesting criteria, during the three-year period ended December 31, 2023. The table reflects the life-to-date activity for these awards: Grant year Vesting Shares Restrictions lapsed and shares released to participants Shares withheld for taxes by participants Shares forfeited by participants (1) Shares unvested 2021 3 56,864 24,905 12,653 2,706 16,600 2022 3 38,133 8,848 4,204 2,300 22,781 2023 3 70,716 2,140 740 4,340 63,496 (1) These shares represent forfeitures resulting from recipients whose employment was terminated during the life-to-date period ended December 31, 2023. Dividend equivalents are held in escrow for award recipients for dividends paid prior to the forfeiture restrictions lapsing. Such dividend equivalents are not released from escrow if an award is forfeited. Performance Stock Unit Awards The following table details the performance stock unit awards outstanding at December 31, 2023: Grant year Units Awarded Applicable performance periods associated with each tranche (fiscal year) Service period per tranche Subsequent Period in which units to be settled into shares of common stock (2) Named Executive Officers (NEOs) (1) Leadership Team other than NEOs 2023 103,136 — 247,515 61,673 2023-2025 0 0 2026 2022 56,465 — 135,514 32,320 2022-2024 0 0 2025 2022 — — 230,000 — 2022-2024 0 1 2026 2021 89,234 — 214,155 45,240 2021-2023 0 0 2024 2020 136,137 — 204,220 59,648 2020 2 3 2025 2021 2 2 2025 2022 2 1 2025 2019 166,211 — 249,343 52,244 2019 2 3 2024 2020 2 2 2024 2021 2 1 2024 (1) The named executive officers are awarded a range of awards that generally may be earned based on attainment of goals between a target level of performance and a maximum level of performance. The 230,000 performance units awarded to the NEOs in 2022 may be earned based on target level performance and do not include maximum level payout. (2) Performance stock unit awards granted in or after 2021, if earned, will be settled in shares of Pinnacle Financial common stock in the period noted in the table, if the performance criterion included in the applicable performance unit award agreement are met. During the years ended December 31, 2023, 2022 and 2021, the restrictions associated with 112,561, 130,996 and 134,146 performance stock unit awards, respectively, granted in prior years lapsed, based on the terms of the applicable award agreement and approval by Pinnacle Financial's Human Resources and Compensation Committee, and were settled into shares of Pinnacle Financial common stock with 39,139, 46,684 and 46,616 shares, respectively, being withheld to pay the taxes associated with the settlement of those shares. Additionally, during the years ended December 31, 2023 and 2021, 9,967 and 199,633 performance stock unit awards granted in prior years were forfeited due to the failure to reach performance targets as defined in the associated performance stock unit award agreements. No shares were forfeited during the year ended December 31, 2022. A summary of stock compensation expense, net of the impact of income taxes, related to restricted share awards, restricted stock unit awards and performance stock unit awards for each year in the three-year period ended December 31, 2023, follows (in thousands): 2023 2022 2021 Restricted stock expense $ 41,879 $ 39,552 $ 24,952 Income tax benefit (1) 10,470 10,339 6,522 Restricted stock expense, net of income tax benefit $ 31,409 $ 29,213 $ 18,430 (1) Income tax benefit shown at statutory tax rate for each period presented. A portion of the restricted stock expense associated with awards to NEOs may be disallowed based on Federal income tax regulations. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 14. 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 earnings. Pinnacle Financial's derivative instruments with certain counterparties contain legally enforceable netting that allow multiple transactions to be settled into a single amount. The fair value hedge and interest rate swaps (swaps) assets and liabilities are presented at gross fair value before the application of bilateral collateral and master netting agreements, but after the initial margin posting and daily variation margin payments made with central clearinghouse organizations. Total fair value hedge and swaps assets and liabilities are adjusted to take into consideration the effects of legally enforceable master netting agreements and cash collateral received or paid as of December 31, 2023 and 2022. The resulting net fair value hedge and swaps asset and liability fair values are included in other assets and other liabilities, respectively, on the consolidated balance sheets. The daily settlement of the derivative exposure does not change or reset the contractual terms of the instrument. Non-hedge derivatives For derivatives not designated as hedges, the gain or loss is recognized in current period earnings. Pinnacle Financial enters into 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 customer transactions as of December 31, 2023 and 2022 is included in the following table (in thousands): December 31, 2023 December 31, 2022 Notional Estimated Fair Value (1) Notional Amount Estimated Fair Value (1) Interest rate swap agreements: Assets $ 2,037,740 $ 66,462 $ 1,620,520 $ 39,763 Liabilities 2,037,740 (67,206) 1,620,520 (96,483) Total non-hedging derivatives $ 4,075,480 $ (744) $ 3,241,040 $ (56,720) (1) The variation margin payments for derivatives cleared through central clearing houses are characterized as settlements. At December 31, 2023, no notional amounts of interest rate swap agreements designated as non-hedge derivatives cleared through clearing houses. At December 31, 2022, the notional amount of interest rate swap agreements designated as non-hedge derivatives cleared through clearing houses was $827.3 million with a fair value that approximates zero due to $56.3 million in variation margin payments. The effects of Pinnacle Financial's interest rate swaps to facilitate customers' transactions on the income statement during the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands): Amount of Gain (Loss) Recognized in Income Location of Gain (Loss) Recognized in Income Year ended December 31, 2023 2022 2021 Interest rate swap agreements Other noninterest income $ (308) $ 53 $ 846 Derivatives designated as cash flow hedges For derivative instruments that are designated and qualify as a cash flow hedge, the aggregate fair value of the derivative instrument is recorded in other assets or other liabilities with any gain or loss related to changes in fair value recorded in accumulated other comprehensive income, net of tax. The gain or loss is reclassified into earnings in the same period during which the hedged asset or liability affects earnings and is presented in the same income statement line item as the earnings effect of the hedged asset or liability. Pinnacle Financial uses forward cash flow hedge relationships in an effort to manage future interest rate exposure. The hedging strategy converts the SOFR-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 2022, Pinnacle Financial paid $95.7 million to purchase interest rate floors and interest rate collars with notional amounts totaling $1.8 billion to mitigate the impact of changing interest rates on SOFR-based variable rate loans. A summary of Pinnacle Financial's cash flow hedge relationships as of December 31, 2023 and 2022 is as follows (in thousands): December 31, 2023 December 31, 2022 Balance Sheet Location Weighted Average Remaining Maturity Receive Rate Pay Rate Notional Estimated Notional Estimated Asset derivatives Interest rate floor - loans Other assets 3.84 4.00%-4.50% minus USD-Term SOFR 1M N/A $ 875,000 $ 36,483 $ 875,000 $ 48,622 Interest rate collar - loans Other assets 3.84 4.25%-4.75% minus USD-Term SOFR 1M USD-Term SOFR 1M minus 6.75%-7.00% $ 875,000 $ 38,314 $ 875,000 $ 45,553 $ 1,750,000 $ 74,797 $ 1,750,000 $ 94,175 The effects of Pinnacle Financial's cash flow hedge relationships on the statement of comprehensive income (loss) during the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands): Amount of Gain (Loss) Recognized in Other Comprehensive Income Years ended December 31, 2023 2022 2021 Asset derivatives Interest rate floor - loans $ (7,414) $ 1,002 $ (15,034) The cash flow hedges were determined to be highly effective during the periods presented and as a result qualified for hedge accounting treatment. If a hedge were deemed to be ineffective, the amount included in accumulated other comprehensive income (loss) would be reclassified into a line item within the statement of income that impacts operating results. A hedging relationship is no longer considered to be effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence or Pinnacle Financial discontinues hedge accounting. Gains on cash flow hedges totaling $9.7 million, $10.0 million and $9.6 million, net of tax, were reclassified from accumulated other comprehensive income (loss) into net income during the years ended December 31, 2023, 2022 and 2021, respectively. Approximately $9.0 million in unrealized gains, net of tax, are expected to be reclassified from accumulated other comprehensive income (loss) into net income over the twelve months ended December 31, 2024. 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. The hedging strategy on securities converts the fixed interest rates to variable interest rates based on SOFR or federal funds 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. During 2023, Pinnacle Financial entered into fair value hedges with aggregate notional amounts of $1.2 billion to mitigate the effect of changing interest rates on FHLB advances with payments beginning on various dates throughout 2024 and the first quarter of 2025. A summary of Pinnacle Financial's fair value hedge relationships as of December 31, 2023 and 2022 is as follows (in thousands): December 31, 2023 December 31, 2022 Balance Sheet Location Weighted Average Remaining Maturity (In Years) Weighted Average Pay Rate Receive Rate Notional Amount Estimated Fair Value (1) Notional Amount Estimated Fair Value (1) Asset derivatives Interest rate swaps - securities Other assets 10.16 1.97% Federal funds/SOFR $ 543,061 $ 42,983 $ 1,420,724 $ 56,056 Interest rate swaps - borrowings Other assets 3.53 N/A —% $ 750,000 $ 3,654 $ — $ — Liability derivatives Interest rate swaps - securities Other liabilities 11.22 3.10% Federal funds/SOFR 1,569,078 (1,275) — — Interest rate swaps - borrowings Other liabilities 4.09 N/A —% 425,000 (1,656) — — Total fair value derivatives $ 3,287,139 $ 43,706 $ 1,420,724 $ 56,056 (1) The variation margin payments for derivatives cleared through central clearing houses are characterized as settlements. At December 31, 2023 and 2022, the notional amount of fair value derivatives hedges cleared through clearing houses is $2.0 billion and $877.7 million with a fair value that approximates zero due to $4.0 million and $47.9 million in variation margin payments. Notional amounts totaling $392.2 million as of December 31, 2023 receive a variable rate of interest based on the daily compounded federal funds rate and notional amounts totaling $2.9 billion as of December 31, 2023 receive a variable rate of interest based on the daily compounded secured overnight financing rate. The effects of Pinnacle Financial's fair value hedge relationships on the income statement during the years end December 31, 2023, 2022 and 2021 were as follows (in thousands): Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income Year ended December 31, Securities 2023 2022 2021 Interest rate swaps Interest income on securities $ (14,348) $ 80,728 $ 42,642 Securities available-for-sale Interest income on securities $ 14,348 $ (80,728) $ (42,642) Location of Gain (Loss) Amount of Loss Recognized in Income Years ended December 31, FHLB advances 2023 2022 2021 Interest rate swaps - FHLB advances Interest expense on FHLB advances and other borrowings $ 1,998 $ — $ — FHLB advances Interest expense on FHLB advances and other borrowings $ (1,998) $ — $ — The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at December 31, 2023 and 2022 (in thousands): Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Line item on the balance sheet Securities available-for-sale $ 2,074,621 $ 1,445,511 $ (41,708) $ (56,056) FHLB advances $ 1,173,002 $ — $ (1,998) $ — During the years ended December 31, 2023, 2022 and 2021 amortization expense totaling $645,000, $1.9 million and $3.5 million, respectively, related to previously terminated fair value hedges was recognized as a reduction to interest income on loans. |
Employee Contracts
Employee Contracts | 12 Months Ended |
Dec. 31, 2023 | |
Compensation Related Costs [Abstract] | |
Employment Contracts | Note 15. Employment Contracts Pinnacle Financial has entered into, and subsequently amended employment agreements with four of its senior executives: the President and Chief Executive Officer, the Chairman of the Board, the Chairman of the Carolinas and Virginia, and the Chief Financial Officer. These agreements, as amended, automatically renew each year on January 1 for an additional year unless any of the parties to the agreements gives notice of intent not to renew the agreement prior to November 30th of the preceding year, in which case the agreement terminates 30 days later. The agreements specify that in certain defined "Terminating Events," Pinnacle Financial will be obligated to pay each of the four senior executives certain amounts, which vary according to the Terminating Event, which is based on their annual salaries and bonuses. These Terminating Events include termination for disability, cause, without cause and other events. The agreement with the Chairman of the Carolinas and Virginia also provides for the payment of certain deferred benefits under his prior employment agreement with BNC upon termination of his employment with Pinnacle Financial. During 2012, Pinnacle Financial entered into, and subsequently amended, a change of control agreement with its Chief Credit Officer providing the employee with certain benefits if his employment terminated under certain scenarios within twelve months of a change in control. This agreement automatically renews each year on January 1 unless a party to the agreement notifies the other parties of intent not to renew the agreement prior to November 30th of the preceding year, in which case the agreement terminates 30 days later. |
Related Party Matters
Related Party Matters | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 16. Related Party Transactions See Note 5 - "Loans and Allowance for Credit Losses", concerning loans and other extensions of credit to certain directors, officers, and their related entities and individuals, Note 12 – "Salary Deferral Plans" regarding supplemental retirement agreement obligations to certain directors who were formerly directors or employees of acquired banks and Note 2 - "Equity Method Investment" regarding related parties associated with the investment. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 17. Fair Value of Financial Instruments FASB ASC 820, Fair Value Measurements and Disclosures , defines fair value, establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements. The definition of fair value focuses on the exit price, i.e., the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, not the entry price, i.e., the price that would be paid to acquire the asset or received to assume the liability at the measurement date. The statement emphasizes that fair value is a market-based measurement; not an entity-specific measurement. Therefore, the fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. Valuation Hierarchy FASB ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: • Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. Assets Securities available-for-sale – Where quoted prices are available for identical securities in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government securities and certain other financial products. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. In certain cases where there is limited activity or less transparency around inputs to the valuation and more complex pricing models or discounted cash flows are used, securities are classified within Level 3 of the valuation hierarchy. Other investments – Included in other investments are investments recorded at fair value primarily in certain nonpublic investments and funds. The valuation of these nonpublic investments requires management judgment due to the absence of observable quoted market prices, inherent lack of liquidity and the long-term nature of such assets. These investments are valued initially based upon transaction price. The carrying values of other investments are adjusted either upwards or downwards from the transaction price to reflect expected exit values as evidenced by financing and sale transactions with third parties, or when determination of a valuation adjustment is confirmed through financial reports provided by the portfolio managers of the investments. A variety of factors are reviewed and monitored to assess positive and negative changes in valuation including, but not limited to, current operating performance and future expectations of the particular investment, industry valuations of comparable public companies and changes in market outlook and the third-party financing environment over time. In determining valuation adjustments resulting from the investment review process, emphasis is placed on current company performance and market conditions. These investments are included in Level 3 of the valuation hierarchy if the entities and funds are not widely traded and the underlying investments are in privately-held and/or start-up companies for which market values are not readily available. Certain investments in funds for which the underlying assets of the fund represent publicly traded investments are included in Level 2 of the valuation hierarchy. Other assets – Included in other assets are certain assets carried at fair value, including interest rate swap agreements to facilitate customer transactions, interest rate swap agreements designated as fair value hedges, interest rate caps and 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. Collateral dependent loans – Collateral dependent loans are measured at the fair value of the collateral securing the loan less estimated selling costs. The fair value of real estate collateral is determined based on real estate appraisals which are generally based on recent sales of comparable properties which are then adjusted for property specific factors. Non-real estate collateral is valued based on various sources, including third party asset valuations and internally determined values based on cost adjusted for depreciation and other judgmentally determined discount factors. Collateral dependent loans are classified within Level 3 of the hierarchy due to the unobservable inputs used in determining their fair value such as collateral values and the borrower's underlying financial condition. Other real estate owned – Other real estate owned (OREO) represents real estate foreclosed upon by Pinnacle Bank through loan defaults by customers or acquired by deed in lieu of foreclosure. A significant portion of these amounts relate to lots, homes and development projects that are either completed or are in various stages of 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 credit losses. Additional OREO losses for subsequent valuation downward adjustments are determined on a specific property basis and are included as a component of noninterest expense along with holding costs. Any gains or losses realized at the time of disposal are also reflected in noninterest expense, as applicable. OREO is included in Level 3 of the valuation hierarchy due to the lack of observable market inputs into the determination of fair value as appraisal values are property-specific and sensitive to the changes in the overall economic environment. Liabilities Other liabilities – Pinnacle Financial has certain liabilities carried at fair value including certain interest rate swap agreements to facilitate customer transactions, interest rate swaps designated as fair value, interest rate caps and floors designated as 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 the financial instruments carried at fair value on a recurring basis as of December 31, 2023 and 2022, 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 Models with significant observable market parameters Models with significant unobservable market parameters December 31, 2023 Investment securities available-for-sale: U.S. Treasury securities $ 893,412 $ — $ 893,412 $ — U.S. Government agency securities 262,730 — 262,730 — Mortgage-backed securities 947,390 — 947,390 — State and municipal securities 1,585,895 — 1,585,416 479 Asset-backed securities 191,635 — 191,635 — Corporate notes and other 436,468 — 436,468 — Total investment securities available-for-sale 4,317,530 — 4,317,051 479 Other investments 179,487 — 22,347 157,140 Other assets 197,541 — 197,541 — Total assets at fair value $ 4,694,558 $ — $ 4,536,939 $ 157,619 Other liabilities $ 79,068 $ — $ 79,068 $ — Total liabilities at fair value $ 79,068 $ — $ 79,068 $ — December 31, 2022 Investment securities available-for-sale: U.S. Treasury securities $ 194,184 $ — $ 194,184 $ — U.S. Government agency securities 396,157 — 396,157 — Mortgage-backed securities 971,576 — 971,576 — State and municipal securities 1,412,306 — 1,411,677 629 Asset-backed securities 117,403 — 117,403 — Corporate notes and other 467,244 — 467,244 — Total investment securities available-for-sale 3,558,870 — 3,558,241 629 Other investments 153,011 — 22,029 130,982 Other assets 190,629 — 190,629 — Total assets at fair value $ 3,902,510 $ — $ 3,770,899 $ 131,611 Other liabilities $ 96,483 $ — $ 96,483 $ — Total liabilities at fair value $ 96,483 $ — $ 96,483 $ — The following table presents assets measured at fair value on a nonrecurring basis as of December 31, 2023 and 2022 (in thousands): December 31, 2023 Total carrying value in the consolidated balance sheet Quoted market prices in an active market Models with significant observable market parameters Models with significant unobservable market Other real estate owned $ 3,937 $ — $ — $ 3,937 Collateral dependent loans (1) 52,167 — — 52,167 Total $ 56,104 $ — $ — $ 56,104 December 31, 2022 Other real estate owned $ 7,952 $ — $ — $ 7,952 Collateral dependent loans (1) 33,767 — — 33,767 Total $ 41,719 $ — $ — $ 41,719 (1) The carrying values of collateral dependent loans at December 31, 2023 and 2022 are net of valuation allowances of $18.6 million and $6.5 million, respectively. 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 year ended December 31, 2023, there were no transfers between Levels 1, 2 or 3. The table below includes a rollforward of the balance sheet amounts for the years ended December 31, 2023 and December 31, 2022, (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 year ended December 31, 2023 2022 Available-for-sale Securities Other Other Available-for-sale Securities Other Other Fair value, Jan. 1 $ 629 $ 130,982 $ — $ 828 $ 100,996 $ — Total net realized gains included in income 4 3,112 — 7 10,605 — Change in unrealized gains/losses included in other comprehensive income (loss) 5 — — (48) — — Purchases — 32,515 — — 33,208 — Issuances — — — — — — Settlements (159) (9,469) — (158) (13,827) — Transfers out of Level 3 — — — — — — Fair value, Dec. 31 $ 479 $ 157,140 $ — $ 629 $ 130,982 $ — Total realized gains included in income $ 4 $ 3,112 $ — $ 7 $ 10,605 $ — The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at December 31, 2023 and 2022. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash, cash equivalents, interest-bearing due from banks and restricted cash, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as non-interest bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity (in thousands). Carrying/ Estimated Fair Value (1) Quoted market prices in an active market Models with significant observable market parameters Models with significant unobservable market December 31, 2023 Financial assets: Securities purchased with agreement to resell $ 558,009 $ 461,375 $ — $ — $ 461,375 Securities held-to-maturity 3,006,357 2,775,184 — 2,775,184 — Loans, net 32,323,036 31,863,583 — — 31,863,583 Consumer loans held-for-sale 104,217 104,626 — 104,626 — Commercial loans held-for-sale 9,280 9,316 — 9,316 — Financial liabilities: Deposits and securities sold under agreements to repurchase 38,749,299 37,954,938 — — 37,954,938 Federal Home Loan Bank advances 2,138,169 2,166,912 — — 2,166,912 Subordinated debt and other borrowings 424,938 462,399 — — 462,399 Carrying/ Estimated Fair Value (1) Quoted market prices in an active market Models with significant observable market parameters Models with significant unobservable market December 31, 2022 Financial assets: Securities purchased with agreement to resell $ 513,276 $ 440,390 $ — $ — $ 440,390 Securities held-to-maturity 3,079,050 2,744,946 — 2,744,946 — Loans, net 28,740,940 27,901,662 — — 27,901,662 Consumer loans held-for-sale 42,237 42,353 — 42,353 — Commercial loans held-for-sale 21,093 21,151 — 21,151 — Financial liabilities: Deposits and securities sold under agreements to repurchase 35,156,148 34,435,447 — — 34,435,447 Federal Home Loan Bank advances 464,436 477,673 — — 477,673 Subordinated debt and other borrowings 424,055 430,884 — — 430,884 (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. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Note 18. Variable Interest Entities Under ASC 810, Pinnacle Financial is deemed to be the primary beneficiary and required to consolidate a variable interest entity (VIE) if it has a variable interest in the VIE that provides it with a controlling financial interest. For such purposes, the determination of whether a controlling financial interest exists is based on whether a single party has both the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. ASC 810 requires continual reconsideration of conclusions reached regarding which interest holder is a VIE's primary beneficiary and disclosures surrounding those VIE's which have not been consolidated. The consolidation methodology provided in this footnote as of December 31, 2023 and 2022 has been prepared in accordance with ASC 810. Non-consolidated Variable Interest Entities At December 31, 2023, Pinnacle Financial did not have any consolidated VIEs to disclose but did have the following non-consolidated VIEs: low income housing partnerships, other tax credit investments, trust preferred issuances and managed discretionary trusts. Since 2003, Pinnacle Financial has made equity investments as a limited partner in various partnerships that sponsor affordable housing projects. The purpose of these investments is to achieve a satisfactory return on capital and to support Pinnacle Financial's community reinvestment initiatives. The activities of the limited partnerships include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants generally within Pinnacle Financial's primary geographic region. Pinnacle Financial has invested in various limited partnerships that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit (“LIHTC”) pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to assist Pinnacle Bank in achieving its strategic plan associated with the Community Reinvestment Act and to achieve a satisfactory return on capital. The primary activities of the limited partnerships include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants. Generally, these types of investments are funded through a combination of debt and equity. Pinnacle Financial is a limited partner in each LIHTC limited partnership. Each limited partnership is managed by an unrelated third party general partner who exercises full control over the affairs of the limited partnership. The general partner has all the rights, powers and authority granted or permitted to be granted to a general partner of a limited partnership. Except for limited rights granted to the limited partner(s), the limited partner(s) may not participate in the operation, management, or control of the limited partnership’s business, transact any business in the limited partnership’s name or have any power to sign documents for or otherwise bind the limited partnership. In addition, the general partner may only be removed by the limited partner(s) in the event the general partner fails to comply with the terms of the agreement or is negligent in performing its duties. The partnerships related to affordable housing projects are considered VIEs because Pinnacle Financial, as the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the success of the entity through voting rights or similar rights. While Pinnacle Financial could absorb losses that are significant to these partnerships as it has a risk of loss for its initial capital contributions and funding commitments to each partnership, it is not considered the primary beneficiary of the partnerships as the general partners whose managerial functions give them the power to direct the activities that most significantly impact the partnerships' economic performance and who are exposed to all losses beyond Pinnacle Financial's initial capital contributions and funding commitments are considered the primary beneficiaries. Pinnacle Financial makes equity investments as a limited partner or non-managing member in entities that receive New Markets Tax Credits, historic tax credits, and renewable energy tax credits. The purpose of these investments is to achieve a satisfactory return on investment and support Pinnacle Financial's community reinvestment initiatives. These entities are considered VIEs as Pinnacle Financial as the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the success of the entity through voting rights or similar rights. Pinnacle Financial (or companies it has acquired) has previously issued subordinated debt totaling $133.0 million to certain statutory trusts which are considered VIEs because Pinnacle Financial's capital contributions to these trusts are not considered "at risk" in evaluating whether the holders of the equity investments at risk in the trusts have the power through voting rights or similar rights to direct the activities that most significantly impact the entities' economic performance. These trusts were not consolidated by Pinnacle Financial because the holders of the securities issued by the trusts absorb a majority of expected losses and residual returns. Pinnacle Financial serves as manager over certain discretionary trusts, for which it makes investment decisions on behalf of the trusts' beneficiaries in return for a management fee. The trusts meet the definition of a VIE since the holders of the equity investments at risk do not have the power through voting rights or similar rights to direct the activities that most significantly impact the entities' economic performance. However, since the management fees Pinnacle Financial receives are not considered variable interests in the trusts as all of the requirements related to permitted levels of decision maker fees are met, such VIEs are not consolidated by Pinnacle Financial because it cannot be the trusts' primary beneficiary. Pinnacle Financial has no contractual requirements to provide financial support to the trusts. The following table summarizes VIE's that are not consolidated by Pinnacle Financial as of December 31, 2023 and 2022 (in thousands): December 31, 2023 December 31, 2022 Type Maximum Liability Maximum Liability Classification Low income housing partnerships $ 260,476 $ — $ 228,372 $ — Other Assets Other tax credit investments 27,600 — 6,118 — Other Assets Trust preferred issuances N/A 132,995 N/A 132,995 Subordinated Debt Managed discretionary trusts N/A N/A N/A N/A N/A |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Matters | Note 19. Regulatory Matters Pursuant to Tennessee banking law, Pinnacle Bank may not, without the prior consent of the Commissioner of the Tennessee Department of Financial Institutions (TDFI), pay any dividends to Pinnacle Financial in a calendar year in excess of the total of Pinnacle Bank's retained net income for that year plus the retained net income for the preceding two In addition, the Federal Reserve has issued supervisory guidance advising bank holding companies to eliminate, defer or reduce dividends paid on common stock and other forms of Tier 1 capital where the company’s net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends, the company’s prospective rate of earnings retention is not consistent with the company’s capital needs and overall current and prospective financial condition or the company will not meet, or is in danger of not meeting, minimum regulatory capital adequacy ratios. Recent supplements to this guidance reiterate the need for bank holding companies to inform their applicable reserve bank sufficiently in advance of the proposed payment of a dividend in certain circumstances. During the year ended December 31, 2023, Pinnacle Bank paid $106.2 million in dividends to Pinnacle Financial. As of December 31, 2023, Pinnacle Bank could pay approximately $1.4 billion of additional dividends to Pinnacle Financial without prior approval of the Commissioner of the TDFI. Since the fourth quarter of 2013, Pinnacle Financial has paid a quarterly common stock dividend. The board of directors of Pinnacle Financial has increased the dividend amount per share over time. The most recent increase occurred on January 18, 2022, when the board of directors increased the dividend to $0.22 per common share from $0.18 per common share. During the second quarter of 2020, Pinnacle Financial successfully issued 9.0 million depositary shares, each representing a 1/40th fractional interest in a share of Series B noncumulative, perpetual preferred stock (the "Series B Preferred Stock") in a registered public offering to both retail and institutional investors. Beginning in the third quarter of 2020, Pinnacle Financial began paying a quarterly dividend of $16.88 per share (or $0.422 per depositary share), on the Series B Preferred Stock. The amount and timing of all future dividend payments by Pinnacle Financial, if any, including dividends on Pinnacle Financial's Series B Preferred Stock (and associated depositary shares), is subject to discretion of Pinnacle Financial's board of directors and will depend on Pinnacle Financial's receipt of dividends from Pinnacle Bank, earnings, capital position, financial condition, liquidity and other factors, including regulatory capital requirements, as they become known to Pinnacle Financial and receipt of any regulatory approvals that may become required as a result of each of Pinnacle Financial's or Pinnacle Bank's financial results. Pinnacle Financial and Pinnacle Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions, by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Pinnacle Financial and Pinnacle Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Pinnacle Financial's and Pinnacle Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require Pinnacle Financial and its banking subsidiary to maintain minimum amounts and ratios of common equity Tier 1 capital to risk-weighted assets, Tier 1 capital to risk-weighted assets, total capital to risk-weighted assets and Tier 1 capital to average assets. As permitted by the interim final rule issued on March 27, 2020 by the federal banking regulatory agencies, each of Pinnacle Bank and Pinnacle Financial has elected the option to delay the estimated impact on regulatory capital of Pinnacle Financial's and Pinnacle Bank's adoption of ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which was effective January 1, 2020. The initial impact of adoption of ASU 2016-13, as well as 25% of the quarterly increases in the allowance for credit losses subsequent to adoption of ASU 2016-13 (collectively the “transition adjustments”), was delayed until December 31, 2021. As of January 1, 2022, the cumulative amount of the transition adjustments of $68.0 million became fixed and will be phased out of the regulatory capital calculations evenly over a three year period, with 75% recognized in 2022, 50% recognized in 2023, and 25% recognized in 2024. Beginning on January 1, 2025, the temporary regulatory capital benefits will be fully reversed. Management believes, as of December 31, 2023, that Pinnacle Financial and Pinnacle Bank met all capital adequacy requirements to which they are subject. To be categorized as well-capitalized under applicable banking regulations, Pinnacle Financial and Pinnacle Bank must maintain certain total, Tier 1, common equity Tier 1 and Tier 1 leverage capital 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 of 2.5% is not included in the required minimum ratios of the table presented below. Pinnacle Financial's and Pinnacle Bank's actual capital amounts and ratios are presented in the following table (in thousands): Actual Minimum Capital Minimum Amount Ratio Amount Ratio Amount Ratio December 31, 2023 Total capital to risk weighted assets: Pinnacle Financial $ 5,115,755 12.7 % $ 3,216,424 8.0 % $ 4,020,530 10.0 % Pinnacle Bank $ 4,797,278 12.0 % $ 3,207,699 8.0 % $ 4,009,623 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 4,354,759 10.8 % $ 2,412,318 6.0 % $ 2,412,318 6.0 % Pinnacle Bank $ 4,465,282 11.1 % $ 2,405,774 6.0 % $ 3,207,699 8.0 % Common equity Tier 1 capital: Pinnacle Financial $ 4,137,510 10.3 % $ 1,809,238 4.5 % N/A N/A Pinnacle Bank $ 4,465,159 11.1 % $ 1,804,330 4.5 % $ 2,606,255 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 4,354,759 9.4 % $ 1,853,213 4.0 % N/A N/A Pinnacle Bank $ 4,465,282 9.7 % $ 1,847,972 4.0 % $ 2,309,965 5.0 % December 31, 2022 Total capital to risk weighted assets: Pinnacle Financial $ 4,584,292 12.4 % $ 2,949,276 8.0 % $ 3,686,595 10.0 % Pinnacle Bank $ 4,282,742 11.6 % $ 2,941,082 8.0 % $ 3,676,353 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 3,888,100 10.5 % $ 2,211,957 6.0 % $ 2,211,957 6.0 % Pinnacle Bank $ 4,015,550 10.9 % $ 2,205,812 6.0 % $ 2,941,082 8.0 % Common equity Tier 1 capital: Pinnacle Financial $ 3,670,851 10.0 % $ 1,658,968 4.5 % N/A N/A Pinnacle Bank $ 4,015,427 10.9 % $ 1,654,359 4.5 % $ 2,389,629 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 3,888,100 9.7 % $ 1,595,457 4.0 % N/A N/A Pinnacle Bank $ 4,015,550 10.1 % $ 1,591,502 4.0 % $ 1,989,378 5.0 % (*) Average assets for the above calculations were based on the most recent quarter. |
Other Income and Expenses
Other Income and Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Other Noninterest Income and Noninterest Expense [Abstract] | |
Other Income and Other Expense Disclosure | Note 20. Other Noninterest Income and Expense Other noninterest income and expense totals are more fully detailed in the following tables (in thousands). Any components of these totals exceeding 1% of the aggregate of total net interest income and total noninterest income for any of the years presented, as well as amounts Pinnacle Financial elected to present, are stated separately. Years ended 2023 2022 2021 Other noninterest income: Interchange and other consumer fees $ 69,709 $ 68,022 $ 57,263 Bank-owned life insurance 15,797 21,033 18,942 Loan swap fees 7,851 5,812 5,414 SBA loan sales 3,983 7,036 12,242 Income from other equity investments 8,732 10,605 23,109 Other noninterest income 26,886 23,456 12,824 Total other noninterest income $ 132,958 $ 135,964 $ 129,794 Other noninterest expense: Deposit related expenses $ 78,757 $ 28,972 $ 24,003 Lending related expenses 50,109 52,700 39,578 Wealth management related expenses 2,934 2,565 1,950 Audit, exam and insurance expense 10,887 9,209 11,259 Administrative and other expenses 31,812 27,375 23,169 Total other noninterest expense $ 174,499 $ 120,821 $ 99,959 |
Parent Company Only Financial I
Parent Company Only Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Information | Note 21. Parent Company Only Financial Information The following information presents the condensed balance sheets, statements of operations, and cash flows of Pinnacle Financial as of December 31, 2023 and 2022 and for each of the years in the three-year period ended December 31, 2023 (in thousands): CONDENSED BALANCE SHEETS 2023 2022 Assets: Cash and cash equivalents $ 197,079 $ 186,572 Investments in bank subsidiary 6,126,172 5,626,844 Investments in consolidated subsidiaries 14,031 12,202 Investment in unconsolidated subsidiaries: Statutory Trusts 3,995 3,995 Other investments 67,848 56,957 Current income tax receivable 32,466 33,870 Other assets 144,597 57,980 $ 6,586,188 $ 5,978,420 Liabilities and shareholders' equity: Subordinated debt and other borrowings 424,938 424,055 Other liabilities 125,462 34,973 Shareholders' equity 6,035,788 5,519,392 $ 6,586,188 $ 5,978,420 CONDENSED STATEMENTS OF OPERATIONS 2023 2022 2021 Revenues: Income from bank subsidiary $ 106,203 $ 110,834 $ 99,766 Income from nonbank subsidiaries 750 145 89 Income from equity method investment — 33,817 33,169 Other income 12,360 6,478 14,945 Expenses: Interest expense 23,263 18,590 22,903 Personnel expense, including stock compensation 41,879 39,552 24,952 Other expense 3,180 3,025 2,697 Income before income taxes and equity in undistributed income of subsidiaries 50,991 90,107 97,417 Income tax benefit (13,547) (8,444) (3,088) Income before equity in undistributed income of subsidiaries 64,538 98,551 100,505 Equity in undistributed income of bank subsidiary 496,236 461,004 424,978 Equity in undistributed income of nonbank subsidiaries 1,378 1,187 1,840 Net income $ 562,152 $ 560,742 $ 527,323 Preferred stock dividends 15,192 15,192 15,192 Net income available to common shareholders $ 546,960 $ 545,550 $ 512,131 CONDENSED STATEMENTS OF CASH FLOWS 2023 2022 2021 Operating activities : Net income $ 562,152 $ 560,742 $ 527,323 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization and accretion 883 882 1,886 Stock-based compensation expense 41,879 39,552 24,952 Increase in income tax payable, net 89,597 28,281 — Deferred tax expense 3,014 1,760 2,850 Income from equity method investments, net — (33,817) (33,169) Dividends received from equity method investment — 10,365 12,214 Excess tax benefit from stock compensation (208) (3,027) (2,475) Gain on other investments, net (2,088) (2,563) (10,223) Decrease (increase) in other assets (88,227) (32,609) 19,478 Increase (decrease) in other liabilities 1,099 3,881 2,032 Equity in undistributed income of bank subsidiary (496,236) (461,004) (424,978) Equity in undistributed income of nonbank subsidiaries (1,378) (1,187) (1,840) Net cash provided by operating activities 110,487 111,256 118,050 Investing activities : Investment in consolidated nonbanking subsidiaries (10,000) — — Repayment of investment in consolidated nonbanking subsidiaries 9,691 — — Increase in other investments (8,802) (15,776) (11,668) Net cash used in investing activities (9,111) (15,776) (11,668) Financing activities : Repayment of subordinated debt and other borrowings — — (120,000) Issuance of common stock pursuant to restricted stock unit agreement, net of shares withheld for taxes (3,725) (5,462) (3,790) Exercise of common stock options, net of shares surrendered for taxes (3,215) (4,714) (3,130) Common dividends paid (68,737) (68,194) (55,504) Preferred stock dividends paid (15,192) (15,192) (15,192) Net cash used in financing activities (90,869) (93,562) (197,616) 2023 2022 2021 Net increase (decrease) in cash 10,507 1,918 (91,234) Cash and cash equivalents, beginning of year 186,572 184,654 275,888 Cash and cash equivalents, end of year $ 197,079 $ 186,572 $ 184,654 The investment in BHG previously held by Pinnacle Financial was contributed to Pinnacle Bank in an amount of $134.7 million, net of deferred tax liabilities associated with the investment, effective September 30, 2022. Pinnacle Bank is subject to restrictions on the payment of dividends to Pinnacle Financial under Tennessee banking laws. Pinnacle Bank paid dividends of $106.2 million, $110.8 million and $99.8 million, respectively, to Pinnacle Financial in each of the years ended December 31, 2023, 2022 and 2021. |
Quarterly Financial Results (un
Quarterly Financial Results (unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Results (unaudited) | Note 22. Quarterly Financial Results (unaudited) A summary of selected consolidated quarterly financial data for each of the years in the three-year period ended December 31, 2023 follows: (in thousands, except per share data) First Second Third Fourth 2023 Interest income $ 506,039 $ 575,239 $ 627,294 $ 644,796 Net interest income 312,231 315,393 317,242 317,252 Provision for credit losses 18,767 31,689 26,826 16,314 Net income before taxes 171,266 245,902 167,980 128,858 Net income 137,271 197,299 132,603 94,979 Net income available to common shareholders 133,473 193,501 128,805 91,181 Basic net income per common share $ 1.76 $ 2.55 $ 1.69 $ 1.20 Diluted net income per common share $ 1.76 $ 2.54 $ 1.69 $ 1.19 2022 Interest income $ 258,617 $ 292,376 $ 371,764 $ 451,178 Net interest income 239,475 264,574 305,784 319,460 Provision for credit losses 2,720 12,907 27,493 24,805 Net income before taxes 157,590 181,131 183,843 174,929 Net income 129,110 145,127 148,658 137,847 Net income available to common shareholders 125,312 141,329 144,860 134,049 Basic net income per common share $ 1.66 $ 1.87 $ 1.91 $ 1.77 Diluted net income per common share $ 1.65 $ 1.86 $ 1.91 $ 1.76 2021 Interest income $ 251,917 $ 259,236 $ 260,868 $ 259,193 Net interest income 222,870 233,225 237,543 238,763 Provision for credit losses 7,235 2,834 3,382 2,675 Net income before taxes 153,648 162,458 169,405 166,394 Net income 125,428 131,790 136,577 133,528 Net income available to common shareholders 121,630 127,992 132,779 129,730 Basic net income per common share $ 1.61 $ 1.70 $ 1.76 $ 1.72 Diluted net income per common share $ 1.61 $ 1.69 $ 1.75 $ 1.71 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||||||||||||||
Net income | $ 94,979 | $ 132,603 | $ 197,299 | $ 137,271 | $ 137,847 | $ 148,658 | $ 145,127 | $ 129,110 | $ 133,528 | $ 136,577 | $ 131,790 | $ 125,428 | $ 562,152 | $ 560,742 | $ 527,323 |
Insider Trading Arrangements
Insider Trading Arrangements - shares | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 14, 2023 | |
Trading Arrangements, by Individual | |||
Non-Rule 10b5-1 Arrangement Adopted | false | ||
Rule 10b5-1 Arrangement Terminated | false | ||
Non-Rule 10b5-1 Arrangement Terminated | false | ||
M. Terry Turner [Member] | |||
Trading Arrangements, by Individual | |||
Material Terms of Trading Arrangement | M. Terry Turner, the President, Chief Executive Officer and director of Pinnacle Financial, adopted a new trading plan on December 14, 2023 (with the first trade under the plan to occur on or after March 13, 2024). The plan expires on the earlier of (i) December 1, 2024 or (ii) upon the completion of the sale of the maximum number of shares under the plan. The aggregate number of shares to be sold under the plan is 72,000 shares. | ||
Name | M. Terry Turner | ||
Title | President, Chief Executive Officer and director | ||
Rule 10b5-1 Arrangement Adopted | true | ||
Adoption Date | December 14, 2023 | ||
Termination Date | December 1, 2024 | ||
Arrangement Duration | 263 days | ||
Aggregate Available | 72,000 | ||
Robert A. McCabe, Jr. [Member] | |||
Trading Arrangements, by Individual | |||
Material Terms of Trading Arrangement | Robert A. McCabe, Jr., the Chairman of the Board and director of Pinnacle Financial, adopted a new trading plan on December 14, 2023 (with the first trade under the plan to occur on or after March 13, 2024). The plan expires on the earlier of (i) December 1, 2024 or (ii) upon the completion of the sale of the maximum number of shares under the plan. The aggregate number of shares to be sold under the plan is 72,000 share | ||
Name | Robert A. McCabe, Jr. | ||
Title | Chairman of the Board and director | ||
Adoption Date | December 14, 2023 | ||
Termination Date | December 1, 2024 | ||
Arrangement Duration | 263 days | ||
Aggregate Available | 72,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — These consolidated financial statements include the accounts of Pinnacle Financial and its direct and indirect wholly-owned subsidiaries. Certain statutory trust affiliates of Pinnacle Financial, as noted in Note 9 , are included in these consolidated financial statements pursuant to the equity method of accounting. Significant intercompany transactions and accounts are eliminated in consolidation. |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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 dates and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for credit losses and the determination of any impairment of goodwill or intangible assets. It is reasonably possible Pinnacle Financial's estimate of the allowance for credit losses and determination of impairment of intangible assets could change as a result of the uncertainty in current macroeconomic conditions. The resulting change in these estimates could be material to Pinnacle Financial's consolidated financial statements. |
Impairment | Impairment — Long-lived assets, including purchased intangible assets subject to amortization, such as core deposit intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. Pinnacle Financial had $27.5 million and $34.6 million of long-lived intangibles at December 31, 2023 and 2022, respectively. Goodwill is evaluated for impairment at least annually and more frequently if events and circumstances indicate that the asset might be impaired. ASC 350, Intangibles - Goodwill and Other, provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity performs a qualitative assessment and determines it is necessary, or if a qualitative assessment is not performed, the entity is required to perform a one-step test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit (if any). If, based on a qualitative assessment, an entity determines that the fair value of a reporting unit is more than its carrying amount, the one-step goodwill impairment test is not required. Pinnacle Financial performed a qualitative assessment of goodwill as of December 31, 2023 by examining changes in macroeconomic conditions, industry and market conditions, overall financial performance, cost factors and other relevant entity-specific events, including changes in the share price of Pinnacle Financial's common stock. The results of the qualitative assessment indicated that it was more likely than not that the estimated fair value of Pinnacle Financial's sole reporting unit exceeded its carrying value amount at December 31, 2023 and, therefore, no goodwill impairment was recorded. Should Pinnacle Financial's common stock price decline below book value per share and remain below book value per share for an extended duration or other impairment indicators become known, additional impairment testing of goodwill may be required. Should it be determined in a future period that the goodwill has become impaired, then a charge to earnings will be recorded in the period such determination is made. The following table presents activity for goodwill and other intangible assets (in thousands): Goodwill Core deposit and Total Balance at December 31, 2022 $ 1,846,973 $ 34,555 $ 1,881,528 Acquisitions and purchase of other intangible asset — — — Amortization — (7,090) (7,090) Balance at December 31, 2023 $ 1,846,973 $ 27,465 $ 1,874,438 The following table presents the gross carrying amount and accumulated amortization for the core deposit and other intangible assets (in thousands): December 31, 2023 December 31, 2022 Gross carrying amount $ 117,211 $ 117,211 Accumulated amortization (89,746) (82,656) Net book value $ 27,465 $ 34,555 |
Cash Equivalents and Cash Flows | Cash Equivalents and Cash Flows — Cash on hand, cash items in process of collection, amounts due from banks, Federal funds sold, short-term discount notes and securities purchased under agreements to resell, with original maturities within ninety days, are included in cash and cash equivalents. The following supplemental cash flow information addresses certain cash payments and noncash transactions for each of the years in the three-year period ended December 31, 2023 as follows (in thousands): For the years ended December 31, 2023 2022 2021 Cash Payments: Interest $ 1,042,542 $ 236,463 $ 110,119 Income taxes paid 99,890 128,850 108,304 Noncash Transactions: Loans charged-off to the allowance for credit losses 76,725 54,176 54,996 Loans foreclosed upon with repossessions transferred to other real estate 2,016 230 1,098 Loans foreclosed upon with repossessions transferred to other repossessed assets 561 — — Available-for-sale securities transferred to held-to-maturity portfolio — 1,059,737 — Proceeds receivable from restructure of bank owned life insurance policies 141,547 — — Right-of-use assets recognized in the period in exchange for lease obligations 205,776 42,413 17,642 |
Securities | Securities — Securities are classified based on management's intention on the date of purchase. All debt securities classified as available-for-sale are recorded at fair value with any unrealized gains and losses reported in accumulated other comprehensive income (loss), net of the deferred income tax effects. Securities that Pinnacle Financial has both the positive intent and ability to hold to maturity are classified as held-to-maturity and are carried at historical cost and adjusted for amortization of premiums and accretion of discounts. Interest and dividends on securities, including amortization of premiums and accretion of discounts calculated under the effective interest method, are included in interest income. For certain securities, amortization of premiums and accretion of discounts is computed based on the anticipated life of the security which may be shorter than the stated life of the security. Realized gains and losses from the sale of securities are determined using the specific identification method and are recorded on the trade date of the sale. |
Allowance for Credit Losses - Securities Held to Maturity | Allowance for Credit Losses - Securities Held-to-Maturity — Expected credit losses on debt securities classified as held-to-maturity are measured on a collective basis by major security type. Pinnacle has a zero loss expectation for certain securities within the portfolio, including U.S. treasury securities in addition to U.S government agency securities and residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, and accordingly, no allowance for credit losses is estimated for these securities. The remainder of the portfolio consists substantially of municipal securities rated A or higher by the ratings agencies. The estimates of expected credit losses for the municipal securities and corporate notes and other securities are based on historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The credit models utilized rely on regression analyses to predict probability of default (PD) based on projected macroeconomic factors, including unemployment rates and gross domestic product (GDP), among others. A reasonable and supportable period of twenty-four months and reversion period of eight months is utilized to estimate credit losses on held-to-maturity municipal and corporate securities. The allowance is increased through provision for credit losses and decreased by charge-offs, net of recoveries of amounts previously charged-off. |
Allowance for credit losses - Securities Available-for-sale | Allowance for Credit Losses - Securities Available-for-Sale — For any securities classified as available-for-sale that are in an unrealized loss position at the balance sheet date, Pinnacle Financial assesses whether or not it intends to sell the security, or more likely than not will be required to sell the security, before recovery of its amortized cost basis. If either criteria is met, the security's amortized cost basis is written down to fair value through net income. If neither criteria is met, Pinnacle Financial evaluates whether any portion of the decline in fair value is the result of credit deterioration. Such evaluations consider the extent to which the amortized cost of the security exceeds its fair value, changes in credit ratings and any other known adverse conditions related to the specific security. If the evaluation indicates that a credit loss exists, an allowance for credit losses is recorded through provision for credit losses for the amount by which the amortized cost basis of the security exceeds the present value of cash flows expected to be collected, limited by the amount by which the amortized cost exceeds fair value. Any impairment not recognized in the allowance for credit losses is recognized in other comprehensive income. |
Loans held-for-sale | Loans held-for-sale — Loans originated and intended for sale are carried at the lower of cost or estimated fair value as determined on a loan-by-loan basis. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Realized gains and losses are recognized when legal title to the loans has been transferred to the purchaser and sales proceeds have been received and are reflected in the accompanying consolidated statement of income in gains on mortgage loans sold, net of related costs such as compensation expenses, for mortgage loans, and as a component of other noninterest income for commercial loans held-for-sale. |
Loans | Loans — Pinnacle Financial uses the following loan segments for financial reporting purposes: owner occupied commercial real estate mortgage, non-owner occupied commercial real estate, consumer real estate mortgage, construction and land development, commercial and industrial and consumer and other. The appropriate classification is determined based on the underlying collateral utilized to secure each loan. These classifications are consistent with those utilized in the Quarterly Report of Condition and Income filed by Pinnacle Bank with the Federal Deposit Insurance Corporation (FDIC). Loans are reported at their outstanding principal balances, net of applicable purchase accounting and any deferred fees or costs on originated loans. Interest income on loans is accrued based on the principal balance outstanding. Loan origination fees, net of certain loan origination costs, are deferred and recognized as an adjustment to the related loan yield using a method which approximates the interest method. At December 31, 2023 and 2022, net deferred loan fees of $4.8 million and $26.1 million, respectively, were included as a reduction to loans on the accompanying consolidated balance sheets. As part of our routine credit monitoring process, commercial loans receive risk ratings by the assigned financial advisor and are subject to validation by our independent loan review department. Risk ratings are categorized as pass, special mention, substandard, substandard-nonaccrual or doubtful-nonaccrual. Pinnacle Financial believes that its categories follow those outlined by the FDIC, Pinnacle Bank's primary federal regulator. At December 31, 2023, approximately 79.2% of Pinnacle Financial's loan portfolio was specifically assigned a risk rating. Certain consumer loans and commercial relationships that possess certain qualifying characteristics, including individually smaller balances, are generally not assigned an individual risk rating but are evaluated collectively for credit risk as a homogeneous pool of loans and individually as either accrual or nonaccrual based on the performance of the loan. Loans are placed on nonaccrual status when there is a significant deterioration in the financial condition of the borrower, which generally is the case but is not limited to when the principal or interest is more than 90 days past due, unless the loan is both well-secured and in the process of collection. All interest accrued but not collected for loans that are placed on nonaccrual status is reversed against current interest income. Interest income is subsequently recognized only if certain cash payments are received while the loan is classified as nonaccrual, but interest income recognition is reviewed on a case-by-case basis to determine if the payment should be applied to interest or principal pursuant to regulatory guidelines. A nonaccrual loan is returned to accruing status once the loan has been brought current as to principal and interest and collection is reasonably assured or the loan has been well-secured through other techniques. Loans are charged off when management believes that the full collectability of the loan is unlikely. As such, a loan may be partially charged-off after a "confirming event" has occurred which serves to validate that full repayment pursuant to the terms of the loan is unlikely. |
Purchased Loans | Purchased loans, including loans acquired through a merger, are initially recorded at fair value on the date of purchase. At the time of acquisition, management evaluates all purchased loans using a variety of factors such as current classification or risk rating, past due status and history as a component of the fair value determination. For purchased loans that have not experienced more-than-insignificant credit deterioration since origination, management evaluates each reviewed loan using an internal grading system with a grade assigned to each loan at the date of acquisition. To the extent that any purchased loan is not specifically reviewed, such loan is assumed to have characteristics similar to the characteristics of the specifically reviewed acquired portfolio of purchased loans. Purchased loans that have experienced more than insignificant credit deterioration since origination ("purchased credit deteriorated loans") are individually evaluated by management to determine the estimated fair value of each loan. In determining the estimated fair value of such loans, management considers a number of factors including, among other things, the remaining life of the acquired loans, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral, estimated holding periods, and net present value of cash flows expected to be received. |
Credit Loss, Financial Instrument | Allowance for Credit Losses - Loans — Pinnacle Financial estimates its allowance for credit losses in accordance with the Current Expected Credit Losses (CECL) methodology. Pinnacle Financial's management assesses the adequacy of the allowance on a quarterly basis. This assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance. The level of the allowance is based upon management's evaluation of historical default and loss experience, current and projected economic conditions, asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers' ability to repay a loan (including the timing of future payments), the estimated value of any underlying collateral, composition of the loan portfolio, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. The level of the allowance for credit losses maintained by management is believed adequate to absorb all expected future losses inherent in the loan portfolio at the balance sheet date. The allowance is increased through provision for credit losses and decreased by charge-offs, net of recoveries of amounts previously charged-off. During the second quarter of 2023, Pinnacle Financial implemented updated CECL models in an effort to ensure that risk in its portfolio at an individual loan level continues to be adequately captured given the uncertain state of the economy. The implementation of the new model had no material effect on the overall allowance for credit losses in the quarter of implementation. The allowance for credit losses is measured on a collective basis for pools of loans with similar risk characteristics. Pinnacle Financial has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses: • Owner occupied commercial real estate mortgage loans - Owner occupied commercial real estate mortgage loans are secured by commercial office buildings, industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. For such loans, repayment is largely dependent upon the operation of the borrower's business. • Non-owner occupied commercial real estate loans - These loans represent investment real estate loans secured by office buildings, industrial buildings, warehouses, retail buildings, and multifamily residential housing. Repayment is primarily dependent on lease income generated from the underlying collateral. • Consumer real estate mortgage loans - Consumer real estate mortgage loans consist primarily of loans secured by 1-4 family residential properties, including home equity lines of credit. Repayment is primarily dependent on the personal cash flow of the borrower. • Construction and land development loans - Construction and land development loans include loans where the repayment is dependent on the successful completion and eventual sale, refinance or operation of the related real estate project. Construction and land development loans include 1-4 family construction projects and commercial construction endeavors such as warehouses, apartments, office and retail space and land acquisition and development. • Commercial and industrial loans - Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. These loans are generally secured by equipment, inventory, and accounts receivable of the borrower and repayment is primarily dependent on business cash flows. Loans granted under the Paycheck Protection Program (PPP), which are fully guaranteed by the SBA, are included in this category. • Consumer and other loans - Consumer and other loans include all loans issued to individuals not included in the consumer real estate mortgage classification. Examples of consumer and other loans are automobile loans, consumer credit cards and loans to finance education, among others. Many consumer loans are unsecured. Repayment is primarily dependent on the personal cash flow of the borrower. For commercial real estate, consumer real estate, construction and land development, and commercial and industrial loans, Pinnacle Financial primarily utilizes a probability of default (PD) and loss given default (LGD) modeling approach. These models utilize historical correlations between default experience, loan level attributes and certain macroeconomic factors as determined through a statistical regression analysis. All loan segments modeled using this approach incorporate one or more macroeconomic drivers. Macroeconomic factors used in the model include the unadjusted and seasonally adjusted unemployment rate, gross domestic product, commercial property price index, consumer credit, commercial real estate price index, household debt ratio, household financial obligations ratio, and certain home price indices. Projections of these macroeconomic factors, obtained from an independent third party, are utilized to predict quarterly rates of default based on the statistical PD models. Adjustments are made to predicted default rates as considered necessary for each loan segment based on other quantitative and qualitative information not utilized as a direct input into the statistical models. The predicted quarterly default rates are then applied to the estimated future exposure at default (EAD), as determined based on contractual amortization terms and estimated prepayments. An estimated LGD, determined based on historical loss experience, is then applied to the quarterly defaulted balances for each loan segment to estimate future losses of the loan's amortized cost. Losses are predicted over a period of time determined to be reasonable and supportable, and at the end of the reasonable and supportable period losses are reverted to long term historical averages. The reasonable and supportable period and reversion period are re-evaluated each quarter by Pinnacle Financial and are dependent on the current economic environment among other factors. At December 31, 2023, a reasonable and supportable period of fifteen months was utilized for all loan segments, followed by a twelve month straight line reversion to long term averages. For the consumer and other loan segment, a loss rate approach is utilized. For these loans, historical charge off rates are applied to projected future balances, as determined in the same manner as EAD for the statistically modeled loan segments. For credit cards, which have no amortization terms or contractual maturities and are unconditionally cancellable, future balances are estimated based on expected payment volume applied to the current balance. The estimated loan losses for all loan segments are adjusted for changes in qualitative factors not inherently considered in the quantitative analyses. The qualitative categories and the measurements used to quantify the risks within each of these categories are subjectively selected by management but measured by objective measurements period over period. The data for each measurement may be obtained from internal or external sources. The current period measurements are evaluated and assigned a factor commensurate with the current level of risk relative to past measurements over time. The resulting qualitative adjustments are applied to the relevant collectively evaluated loan portfolios. These adjustments are based upon quarterly trend assessments in portfolio concentrations, policy exceptions, associate retention, independent loan review results, competition and peer group credit quality trends. The qualitative allowance allocation, as determined by the processes noted above, is increased or decreased for each loan segment based on the assessment of these various qualitative factors. Additional qualitative considerations are made for any identified risk which did not exist within our portfolio historically and therefore may not be adequately addressed through evaluation of such risk factor based on historical portfolio trends as previously discussed. Loans that do not share similar risk characteristics with the collectively evaluated pools are evaluated on an individual basis and are excluded from the collectively evaluated pools. Individual evaluations are generally performed for loans greater than $1.0 million which have experienced significant credit deterioration. Such loans are evaluated for credit losses based on either discounted cash flows or the fair value of collateral. For loans individually evaluated for which repayment is expected to be provided substantially through the operation or sale of the collateral, Pinnacle Financial has elected the practical expedient under ASC 326 to estimate expected credit losses based on the fair value of the collateral, with selling costs considered in the event sale of the collateral is expected. The starting point for the estimate of the allowance for credit losses on loans is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. Pinnacle Financial uses a probability of default/loss given default model to determine the allowance for credit losses on loans. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses on loans because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses on loans is generally not recorded upon modification. Occasionally, a loan modification will be granted by providing principal forgiveness on certain loans. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses on loans. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses on loans. In some cases, a loan restructuring will result in providing multiple types of modifications. Typically, one type of modification, such as a payment delay or term extension, is granted initially. If the borrower continues to experience financial difficulty, another modification, such as principal forgiveness or an interest rate reduction, may be granted. Additionally, multiple types of modifications may be made on the same loan within the current reporting period. Such a combination is at least two of the following: a payment delay, term extension, principal forgiveness and interest rate reduction. Upon determination that a modified loan (or portion of the loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses on loans is adjusted by the same amount. In assessing the adequacy of the allowance for credit losses on loans, Pinnacle Financial considers the results of Pinnacle Financial's ongoing independent loan review process. Pinnacle Financial undertakes this process both to ascertain those loans in the portfolio with elevated credit risk and to assist in its overall evaluation of the risk characteristics of the entire loan portfolio. Its loan review process includes the judgment of management, independent internal loan reviewers and reviews that may have been conducted by third-party reviewers including regulatory examiners. Pinnacle Financial incorporates relevant loan review results in the allowance. In accordance with CECL, losses are estimated over the remaining contractual terms of loans, adjusted for prepayments. The contractual term excludes expected extensions, renewals and modifications unless management has a reasonable expectation at the reporting date that a modification will be executed or such renewals, extensions or modifications are included in the original loan agreement and are not unconditionally cancellable by Pinnacle Financial. Credit losses are estimated on the amortized cost basis of loans, which includes the principal balance outstanding, purchase discounts and premiums, deferred loan fees and costs and accrued interest receivable. Accrued interest receivable is presented separately on the balance sheets and as allowed under Accounting Standards Update (ASU) 2016-13 Financial Instruments - Credit Losses is excluded from the tabular loan disclosures in Note 5. While policies and procedures used to estimate the allowance for credit losses on loans, as well as the resultant provision for credit losses charged to income, are considered adequate by management and are reviewed periodically by regulators, model validators and internal audit, they are necessarily approximate and imprecise. There are factors beyond Pinnacle Financial's control, such as changes in projected economic conditions, real estate markets or particular industry conditions which may materially impact asset quality and the adequacy of the allowance for credit losses on loans and thus the resulting provision for credit losses. Allowance for Credit Losses on Off Balance Sheet Credit Exposures — Pinnacle Financial estimates expected credit losses over the contractual term of obligations to extend credit, unless the obligation is unconditionally cancellable. The allowance for off balance sheet exposures is adjusted through the provision for credit losses. The estimates are determined based on the likelihood of funding during the contractual term and an estimate of credit losses subsequent to funding. Estimated credit losses on subsequently funded balances are based on the same assumptions as used to estimate credit losses on existing funded loans. |
Transfers of Financial Assets | Transfers of Financial Assets — Transfers of financial assets are accounted for as sales when control over the assets has been surrendered or in the case of a loan participation, a portion of the asset has been surrendered and meets the definition of a "participating interest". Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from Pinnacle Financial, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) Pinnacle Financial does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. |
Premises and Equipment and Leaseholds | Premises and Equipment and Leaseholds — Premises and equipment are carried at cost less accumulated depreciation and amortization computed principally by the straight-line method over the estimated useful lives of the assets or the expected lease terms for leasehold improvements, whichever is shorter. Useful lives for all premises and equipment range between three Pinnacle Financial, or a subsidiary of Pinnacle Financial, is the lessee with respect to multiple office locations. At December 31, 2023, all such leases were being accounted for as operating leases within the accompanying consolidated financial statements, with the exception of one lease agreement classified as a finance lease. Pinnacle Financial recognizes right-of-use assets and lease liabilities reflecting the present value of future minimum lease payments under its lease agreements in accordance with Accounting Standards Update 2016-02, Leases. |
Other Real Estate Owned | Other Real Estate Owned — Other real estate owned (OREO) represents real estate foreclosed upon or acquired by deed in lieu of foreclosure by Pinnacle Bank through loan defaults by customers as well as properties acquired in connection with the acquisition of BNC that had previously been held for future expansion but were subsequently transferred to OREO. Substantially all of these amounts relate to lots, homes and residential development projects that are either completed or are in various stages of construction for which Pinnacle Financial believes it has adequately supported the value recorded. Upon its acquisition by Pinnacle Bank, the property is recorded at fair value, based on appraised value, less selling costs estimated as of the date acquired. The difference from the loan balance related to the property, if any, is recognized as a charge-off through the allowance for credit losses. Additional OREO losses for subsequent downward valuation adjustments and expenses to maintain OREO are determined on a specific property basis and are included as a component of noninterest expense. Net gains or losses realized at the time of disposal are reflected in noninterest expense. Included in the accompanying consolidated balance sheet at December 31, 2023 and 2022 is $3.9 million and $8.0 million, respectively, of OREO with no related property-specific valuation allowances in either period. During the years ended December 31, 2023 and 2022, Pinnacle Financial had a net foreclosed real estate expense of $315,000 and $280,000, respectively, compared to net foreclosed real estate benefit of $712,000, during the year ended December 31, 2021. |
Other Assets | Other Assets — Included in other assets as of December 31, 2023 and 2022, is approximately $10.8 million and $6.6 million, respectively, of computer software related assets, net of amortization. This software supports Pinnacle Financial's primary data systems and relates to amounts paid to vendors for installation and development of such systems. These amounts are amortized on a straight-line basis over periods of three Pinnacle Financial is required to maintain certain minimum levels of equity investments with certain regulatory and other entities in which Pinnacle Bank has outstanding borrowings, including the Federal Home Loan Bank of Cincinnati (FHLB). At December 31, 2023 and 2022, the cost of these investments was $117.0 million and $80.2 million, respectively. Pinnacle Financial determined that cost approximates the fair value of these investments. Additionally, Pinnacle Financial has recorded certain investments in other non-public entities and funds at fair value of $157.1 million and $131.0 million at December 31, 2023 and 2022, respectively. During 2023, 2022 and 2021, Pinnacle Financial recorded net gains of $3.1 million, $10.6 million and $23.1 million, respectively, on these investments due to changes in their fair value. Pinnacle Financial has an investment in twelve statutory business trusts valued at $4.0 million as of December 31, 2023. The statutory business trusts were established to issue preferred securities, the dividends for which are paid with interest payments Pinnacle Financial makes on subordinated debentures it issued to the statutory business trusts. Pinnacle Bank is the owner and beneficiary of various life insurance policies on certain key executives and certain current and former directors and associates, including policies that were acquired in mergers. Collectively, these policies are reflected in other assets in the accompanying consolidated balance sheets at their respective cash surrender values. At December 31, 2023 and 2022, the aggregate cash surrender value of these policies was approximately $995.2 million and $881.9 million, respectively. Noninterest income related to these policies was $15.8 million, $21.0 million, and $18.9 million, during the years ended December 31, 2023, 2022 and 2021, respectively. Also, as part of Pinnacle Bank's compliance with the Community Reinvestment Act (CRA), it has investments in low income housing entities totaling $260.5 million and $228.4 million, net, as of December 31, 2023 and 2022, respectively. Included in its CRA investments are investments of $162.1 million and $138.0 million at December 31, 2023 and 2022, respectively, net of amortization, that qualify for federal low income housing tax credits. The investments are accounted for under the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received. The amortization and benefits are recognized as a component of income tax expense in the consolidated statements of income. The investments are recorded using the cost method. |
Derivative Instruments | Derivative Instruments — In accordance with ASC Topic 815, Derivatives and Hedging , all derivative instruments are recorded on the accompanying consolidated balance sheet at their respective fair values. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship. If the derivative instrument is not designated as a hedge, changes in the fair value of the derivative instrument are recognized in earnings in the period of change. 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 with large U.S. financial institutions in order to minimize the risk to Pinnacle Financial. These swaps are derivatives, but are not designated as hedging instruments. Pinnacle Financial enters into forward cash flow hedge relationships in the form of interest rate swap agreements to manage its future interest rate exposure. These derivative contracts have been designated as a hedge and, as such, changes in the fair value of the derivative instrument are recorded in other comprehensive income (loss). Pinnacle Financial also enters into fair value hedge relationships to mitigate the effect of changing interest rates on the fair values of securities and FHLB advances. 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 prepares written hedge documentation for all derivatives which are designated as hedges. The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness and ineffectiveness, along with support for management's assertion that the hedge will be highly effective. For designated hedging relationships, Pinnacle Financial performs retrospective and prospective effectiveness testing using quantitative methods where required by accounting standards. For certain hedging relationships, effectiveness is tested through the matching of critical terms. Assessments of hedge effectiveness and measurements of hedge ineffectiveness are performed at least quarterly. The portion of the changes in the fair value of a derivative that is highly effective and that has been designated and qualifies as a cash flow hedge is initially recorded in accumulated other comprehensive income (loss) and will be reclassified to earnings in the same period that the hedged item impacts earnings; any ineffective portion is recorded in current period earnings. Hedge accounting ceases on transactions that are no longer deemed effective, or for which the derivative has been terminated or de-designated. |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase — Pinnacle Financial routinely sells securities to certain treasury management customers and then repurchases these securities the next day. Securities sold under agreements to repurchase are reflected as a secured borrowing in the accompanying consolidated balance sheets at the amount of cash received in connection with each transaction. |
Income Taxes | Income Taxes — ASC 740, Income Taxes , defines the threshold for recognizing the benefits of tax return positions in the financial statements as "more-likely-than-not" to be sustained by the taxing authority. ASC 740 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. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. The net deferred tax asset is reflected as a component of other assets on the consolidated balance sheet. A valuation allowance is required for deferred tax assets if, based on available evidence, it is more likely than not that all or some portion of the asset may not be realized due to the inability to generate sufficient taxable income in the period and/or of the character necessary to utilize the benefit of the deferred tax asset. Income tax expense or benefit for the year is allocated among continuing operations and other comprehensive income (loss), as applicable. The amount allocated to continuing operations is the income tax effect of the pretax income or loss from continuing operations that occurred during the year, plus or minus income tax effects of (i) changes in certain circumstances that cause a change in judgment about the realization of deferred tax assets in future years, including the valuation of deferred tax assets due to changes in enacted income tax rates (ii) changes in income tax laws or rates and (iii) changes in income tax status, subject to certain exceptions. The amount allocated to other comprehensive income (loss) is related solely to changes in the valuation allowance on items that are normally accounted for in other comprehensive income (loss) such as unrealized gains or losses on available-for-sale securities. In accordance with ASC 740-10, Accounting for Uncertainty in Income Taxes , uncertain tax positions are recognized if it is more likely than not, based on technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms realized or sustained upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances and information available at the reporting date. Pinnacle Financial and its subsidiaries file consolidated U.S. Federal and state income tax returns, pursuant to each state's filing requirements. Each entity provides for income taxes based on its contribution to income or loss of the consolidated group. Pinnacle Financial has a Real Estate Investment Trust subsidiary that files a separate federal tax return, but its income is included in the consolidated group's return as required by the federal tax laws. Pinnacle Financial remains open to audit under the statute of limitations by the IRS and the states in which Pinnacle operates for the years ended December 31, 2020 through 2023. Pinnacle Financial's policy is to recognize interest and/or penalties related to income tax matters in income tax expense. Pinnacle Financial recognized $80,000 and $264,000 in interest and penalties related to income tax matters for the years ended December 31, 2023 and 2022. Pinnacle Financial recognized no interest and penalties for the year ended December 31, 2021. |
Income Per Common Share | Income Per Common Share — Basic net income per common share (EPS) is computed by dividing net income available to common shareholders by the weighted average common shares outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted. The difference between basic and diluted weighted average common shares outstanding is attributable to common stock options, restricted share awards, and restricted share unit awards, including those with performance-based vesting provisions. The dilutive effect of outstanding options, restricted share awards, and restricted share unit awards is reflected in diluted EPS by application of the treasury stock method. As of December 31, 2023, there were no stock options outstanding to purchase common shares. For the years ended December 31, 2023, 2022 and 2021, respectively, 631,173, 398,461 and 458,808 of dilutive stock options, dilutive restricted shares and dilutive restricted share units, including those with performance-based vesting provisions, were included in the diluted earnings per common share calculation under the treasury stock method. For the years ended December 31, 2023, 2022 and 2021, there were a combined 484,871, 263,573 and 32,684 respectively, of restricted shares, restricted stock units and performance stock units excluded from the calculation because they were deemed to be antidilutive. The following is a summary of the basic and diluted earnings per common share calculation for each of the years in the three-year period ended December 31, 2023 (dollars in thousands except earnings per share): December 31, 2023 December 31, 2022 December 31, 2021 Basic earnings per common share calculation: Numerator - Net income available to common shareholders $ 546,960 $ 545,550 $ 512,131 Denominator – Weighted average common shares outstanding 76,016,370 75,735,404 75,468,339 Basic net income per common share $ 7.20 $ 7.20 $ 6.79 Diluted earnings per common share calculation: Numerator - Net income available to common shareholders $ 546,960 $ 545,550 $ 512,131 Denominator – Weighted average common shares outstanding 76,016,370 75,735,404 75,468,339 Dilutive shares contingently issuable 631,173 398,461 458,808 Weighted average diluted common shares outstanding 76,647,543 76,133,865 75,927,147 Diluted net income per common share $ 7.14 $ 7.17 $ 6.75 |
Stock-Based Compensation | Stock-Based Compensation — Stock-based compensation expense is recognized based on the fair value of the portion of stock-based payment awards that are ultimately expected to vest, reduced for estimated forfeitures. ASC 718-20, Compensation – Stock Compensation Awards Classified as Equity, allows forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Service based awards with multiple vesting periods are expensed over the entire requisite period as if the award were a single award. For awards with performance vesting criteria, anticipated performance is projected to determine the number of awards expected to vest, and the corresponding aggregate expense is adjusted to reflect the elapsed portion of the applicable performance period. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) — Comprehensive income (loss) consists of the total of all components of comprehensive income (loss) including net income (loss). Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive income (loss) but excluded from net income (loss). As of December 31, 2023, 2022 and 2021, Pinnacle Financial's other comprehensive income (loss) consists primarily of unrealized gains and losses on securities available-for-sale, net of deferred tax expense (benefit) and unrealized gains (losses) on derivative hedging relationships. |
Fair Value Measurement | Fair Value Measurement — ASC Topic 820, Fair Value Measurements and Disclosures , which defines fair value, establishes a framework for measuring fair value in U.S. GAAP and established required disclosures about fair value measurements. ASC 820 applies only to fair value measurements that are already required or permitted by other accounting standards and increases the consistency of those 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. Pinnacle Financial has an established process for determining fair values. Fair value is based upon quoted market prices, where available. If listed prices or quotes are not available, fair value is based upon internally developed models or processes that use primarily market-based or independently-sourced market data, including interest rate yield curves, option volatilities and third party information such as prices of similar assets or liabilities. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. Furthermore, while Pinnacle Financial believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements — In March 2020, the FASB issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , and has issued subsequent amendments thereto, which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance was initially effective for all entities as of March 12, 2020 through December 31, 2022. In December 2022, the FASB issued an update to Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting with Accounting Standards Update 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which updated the effective date to be March 12, 2020 through December 31, 2024. Pinnacle Financial has moved the majority of its LIBOR-based loans to its preferred replacement index, a Secured Overnight Financing Rate (SOFR) based index as of December 31, 2023. For Pinnacle Financial's currently outstanding LIBOR-based loans, the timing and manner in which each customer's interest rate transitions to a replacement index will vary on a case-by-case basis and should occur at the next repricing or renewal date for these loans. In March 2022, the FASB issued Accounting Standards Update 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method , which allows multiple hedged layers to be designated for a single closed portfolio of financial assets resulting in a greater portion of the interest rate risk in the closed portfolio being eligible to be hedged. The amendments allow the flexibility to use different types of derivatives or combinations of derivatives to better align with risk management strategies. Furthermore, among other things, the amendments clarify that basis adjustments of hedged items in the closed portfolio should be allocated at the portfolio level and not the individual assets within the portfolio. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Pinnacle Financial adopted ASU 2022-01 on January 1, 2023 and it did not impact Pinnacle Financial's accounting or disclosures. In March 2022, the FASB issued Accounting Standards Update 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , which removes the accounting guidance for troubled debt restructurings and requires entities to evaluate whether a modification provided to a borrower results in a new loan or continuation of an existing loan. The amendments enhance existing disclosures and require new disclosures for receivables when there has been a modification in contractual cash flows due to a borrower experiencing financial difficulties. Additionally, the amendments require public business entities to disclose gross charge-off information by year of origination in the vintage disclosures. The guidance is effective for entities that have adopted ASU 2016-13 for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Pinnacle Financial adopted ASU 2022-02 on January 1, 2023 and incorporated the required disclosures into Note 5. Loans and Allowance for Credit Losses . |
Newly Issued not yet Effective Accounting Standards | Newly Issued Not Yet Effective Accounting Standards — In June 2022, the FASB issued Accounting Standards Update 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions , which clarifies the guidance in ASC 820 when measuring the fair value of equity securities subject to contractual restrictions that prohibit the sale of an equity security. This update also requires specific disclosures related to these types of securities. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted, including early adoption in an interim period. An entity should apply ASU 2022-03 prospectively once adopted. Pinnacle Financial is assessing ASU 2022-03 and its impact on its accounting and disclosures. In March 2023, the FASB issued Accounting Standards Update 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method , which permits the use of the proportional amortization method of accounting for tax equity investments if certain conditions are met. A reporting entity makes the accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity or individual investment level. The amendments require specific disclosures that must be applied to all investments that generate tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted, including early adoption in an interim period. An entity should apply ASU 2023-02 on a retrospective or modified retrospective basis once adopted. Pinnacle Financial is assessing ASU 2023-02 and its potential impact on its accounting and disclosures. In December 2023, the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which amends the guidance for income tax disclosures to include certain required disclosures related to tax rate reconciliations, including certain categories of expense requiring disclosure, income taxes paid, including disclosure of taxes paid disaggregated by nation, state, and foreign taxes, and other disclosures for disaggregation of income before income tax expense (or benefit) and income tax expense (or benefit) by domestic and foreign allocation. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2024. Early adoption is permitted. An entity should apply ASU 2023-09 on a prospective basis once adopted with retrospective application permitted. Pinnacle Financial is assessing ASU 2023-09 and its potential impact on its accounting and disclosures. Other than those pronouncements discussed above which have been recently adopted, Pinnacle Financial does not believe there were any other recently issued accounting pronouncements that are expected to materially impact its consolidated financial statements. |
Reclassifications | Reclassifications — Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders' equity. |
Subsequent Events | Subsequent Events — ASC Topic 855, Subsequent Events, |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Activity for Goodwill and Other Intangible Assets | The following table presents activity for goodwill and other intangible assets (in thousands): Goodwill Core deposit and Total Balance at December 31, 2022 $ 1,846,973 $ 34,555 $ 1,881,528 Acquisitions and purchase of other intangible asset — — — Amortization — (7,090) (7,090) Balance at December 31, 2023 $ 1,846,973 $ 27,465 $ 1,874,438 |
Gross Carrying Amount and Accumulated Amortization for the Core Deposit and Other Intangible Assets | The following table presents the gross carrying amount and accumulated amortization for the core deposit and other intangible assets (in thousands): December 31, 2023 December 31, 2022 Gross carrying amount $ 117,211 $ 117,211 Accumulated amortization (89,746) (82,656) Net book value $ 27,465 $ 34,555 |
Supplemental Cash Flow Information | Cash Equivalents and Cash Flows — Cash on hand, cash items in process of collection, amounts due from banks, Federal funds sold, short-term discount notes and securities purchased under agreements to resell, with original maturities within ninety days, are included in cash and cash equivalents. The following supplemental cash flow information addresses certain cash payments and noncash transactions for each of the years in the three-year period ended December 31, 2023 as follows (in thousands): For the years ended December 31, 2023 2022 2021 Cash Payments: Interest $ 1,042,542 $ 236,463 $ 110,119 Income taxes paid 99,890 128,850 108,304 Noncash Transactions: Loans charged-off to the allowance for credit losses 76,725 54,176 54,996 Loans foreclosed upon with repossessions transferred to other real estate 2,016 230 1,098 Loans foreclosed upon with repossessions transferred to other repossessed assets 561 — — Available-for-sale securities transferred to held-to-maturity portfolio — 1,059,737 — Proceeds receivable from restructure of bank owned life insurance policies 141,547 — — Right-of-use assets recognized in the period in exchange for lease obligations 205,776 42,413 17,642 |
Basic and Diluted Earnings Per Share Calculations | The following is a summary of the basic and diluted earnings per common share calculation for each of the years in the three-year period ended December 31, 2023 (dollars in thousands except earnings per share): December 31, 2023 December 31, 2022 December 31, 2021 Basic earnings per common share calculation: Numerator - Net income available to common shareholders $ 546,960 $ 545,550 $ 512,131 Denominator – Weighted average common shares outstanding 76,016,370 75,735,404 75,468,339 Basic net income per common share $ 7.20 $ 7.20 $ 6.79 Diluted earnings per common share calculation: Numerator - Net income available to common shareholders $ 546,960 $ 545,550 $ 512,131 Denominator – Weighted average common shares outstanding 76,016,370 75,735,404 75,468,339 Dilutive shares contingently issuable 631,173 398,461 458,808 Weighted average diluted common shares outstanding 76,647,543 76,133,865 75,927,147 Diluted net income per common share $ 7.14 $ 7.17 $ 6.75 |
Equity method investment (Table
Equity method investment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following summary of BHG's financial position and results of operations as of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 are presented as unaudited due to BHG's fiscal year end being September 30 (in thousands): Banker's Healthcare Group December 31, 2023 December 31, 2022 Assets $ 4,304,835 $ 4,375,643 Liabilities $ 3,749,821 $ 3,821,725 Equity interests 555,014 553,918 Total liabilities and equity $ 4,304,835 $ 4,375,643 For the year ended December 31, 2023 2022 2021 Revenues $ 1,175,756 $ 1,110,230 $ 735,506 Net income, pre-tax $ 181,326 $ 295,186 $ 241,051 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-sale | The amortized cost and fair value of securities available-for-sale and held-to-maturity at December 31, 2023 and 2022 are summarized as follows (in thousands): Amortized Cost Gross Gross Fair December 31, 2023 Securities available-for-sale: U.S Treasury securities $ 907,990 $ 2 $ 14,580 $ 893,412 U.S. Government agency securities 284,607 — 21,877 262,730 Mortgage-backed securities 1,071,963 444 125,017 947,390 State and municipal securities 1,604,874 26,129 45,108 1,585,895 Asset-backed securities 201,577 338 10,280 191,635 Corporate notes and other 477,761 69 41,362 436,468 $ 4,548,772 $ 26,982 $ 258,224 $ 4,317,530 Securities held-to-maturity: U.S Treasury securities $ 90,309 $ — $ 3,840 $ 86,469 U.S. Government agency securities 364,769 — 19,187 345,582 Mortgage-backed securities 382,100 637 34,900 347,837 State and municipal securities 1,886,459 6,079 159,027 1,733,511 Asset-backed securities 198,418 — 14,228 184,190 Corporate notes and other 86,009 — 8,414 77,595 $ 3,008,064 $ 6,716 $ 239,596 $ 2,775,184 Allowance for credit losses - securities held-to-maturity (1,707) Securities held-to-maturity, net of allowance for credit losses $ 3,006,357 December 31, 2022 Securities available-for-sale: U.S Treasury securities $ 196,151 $ — $ 1,967 $ 194,184 U.S. Government agency securities 432,475 — 36,318 396,157 Mortgage-backed securities 1,114,948 211 143,583 971,576 State and municipal securities 1,478,310 12,553 78,557 1,412,306 Asset-backed securities 134,386 — 16,983 117,403 Corporate notes and other 515,221 41 48,018 467,244 $ 3,871,491 $ 12,805 $ 325,426 $ 3,558,870 Securities held-to-maturity: U.S Treasury securities $ 92,738 $ — $ 6,472 $ 86,266 U.S. Government agency securities 374,255 — 27,860 346,395 Mortgage-backed securities 413,119 52 41,593 371,578 State and municipal securities 1,927,778 2,216 233,564 1,696,430 Asset-backed securities 184,241 — 18,573 165,668 Corporate notes and other 88,527 — 9,918 78,609 $ 3,080,658 $ 2,268 $ 337,980 $ 2,744,946 Allowance for credit losses - securities held-to-maturity (1,608) Securities held-to-maturity, net of allowance for credit losses $ 3,079,050 |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities as of December 31, 2023 by contractual maturity is shown below. Actual maturities may differ from contractual maturities of mortgage-backed securities since the mortgages 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 Amortized Fair Amortized Fair Due in one year or less $ 16,744 $ 18,747 $ 44,911 $ 43,530 Due in one year to five years 204,619 202,103 406,769 383,312 Due in five years to ten years 549,251 504,648 100,801 94,025 Due after ten years 2,504,618 2,453,007 1,875,065 1,722,290 Mortgage-backed securities 1,071,963 947,390 382,100 347,837 Asset-backed securities 201,577 191,635 198,418 184,190 $ 4,548,772 $ 4,317,530 $ 3,008,064 $ 2,775,184 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | At December 31, 2023 and 2022, included in securities available-for-sale were the following investments with unrealized losses. The information below classifies these investments according to the term of the unrealized loss of less than twelve months or twelve months or longer (in thousands): Investments with an Unrealized Loss of Investments with an Total Investments Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized December 31, 2023 U.S. Treasury securities $ 693,621 $ 11,651 $ 192,500 $ 2,929 $ 886,121 $ 14,580 U.S. Government agency securities 14,989 11 247,648 21,866 262,637 21,877 Mortgage-backed securities 72,907 1,518 828,251 123,499 901,158 125,017 State and municipal securities 185,108 908 449,212 44,200 634,320 45,108 Asset-backed securities 42,207 254 122,469 10,026 164,676 10,280 Corporate notes and other 12,679 7 403,882 41,355 416,561 41,362 Total temporarily-impaired securities $ 1,021,511 $ 14,349 $ 2,243,962 $ 243,875 $ 3,265,473 $ 258,224 December 31, 2022 U.S. Treasury securities $ 192,188 $ 1,963 $ 1,997 $ 4 $ 194,185 $ 1,967 U.S. Government agency securities 46,062 2,224 350,094 34,094 396,156 36,318 Mortgage-backed securities 390,014 34,106 570,601 109,477 960,615 143,583 State and municipal securities 568,691 18,863 304,451 59,694 873,142 78,557 Asset-backed securities 513 5 116,442 16,978 116,955 16,983 Corporate notes and other 259,453 20,260 207,326 27,758 466,779 48,018 Total temporarily-impaired securities $ 1,456,921 $ 77,421 $ 1,550,911 $ 248,005 $ 3,007,832 $ 325,426 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans at December 31, 2023 and 2022 were as follows (in thousands): December 31, 2023 December 31, 2022 Commercial real estate: Owner-occupied $ 4,044,896 $ 3,587,257 Non-owner occupied 7,535,494 6,542,619 Consumer real estate – mortgage 4,851,531 4,435,046 Construction and land development 4,041,081 3,679,498 Commercial and industrial 11,666,691 10,241,362 Consumer and other 536,398 555,823 Subtotal $ 32,676,091 $ 29,041,605 Allowance for credit losses (353,055) (300,665) Loans, net $ 32,323,036 $ 28,740,940 |
Summary of Amount of Each Loan Classification, Categorized into Each Risk Rating Class | The table below presents loan balances classified within each risk rating category by primary loan type and based on year of origination or most recent renewal as of December 31, 2023 (in thousands): December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate- owner occupied Pass $ 785,834 $ 1,123,425 $ 871,389 $ 502,260 $ 267,595 $ 357,339 $ 56,680 $ 3,964,522 Special Mention 1,595 37,324 5,300 2,252 5,306 4,701 — 56,478 Substandard (1) 5,528 9,331 3,262 1,145 568 610 — 20,444 Substandard-nonaccrual 1,781 615 686 53 — 317 — 3,452 Doubtful-nonaccrual — — — — — — — — Total Commercial real estate - owner occupied $ 794,738 $ 1,170,695 $ 880,637 $ 505,710 $ 273,469 $ 362,967 $ 56,680 $ 4,044,896 Current period gross charge-offs $ — — — — — — — $ — Commercial real estate- Non-owner occupied Pass $ 1,304,109 $ 2,682,275 $ 1,737,275 $ 713,979 $ 505,767 $ 370,420 $ 107,841 $ 7,421,666 Special Mention — 30,229 — 6,745 216 5,335 — 42,525 Substandard (1) 25,723 2,969 — — 1,195 73 — 29,960 Substandard-nonaccrual — 153 40,180 — — 489 521 41,343 Doubtful-nonaccrual — — — — — — — — Total Commercial real estate - Non-owner occupied $ 1,329,832 $ 2,715,626 $ 1,777,455 $ 720,724 $ 507,178 $ 376,317 $ 108,362 $ 7,535,494 Current period gross charge-offs $ — — — — — — — $ — Consumer real estate – mortgage Pass $ 573,120 $ 976,006 $ 1,056,720 $ 448,420 $ 207,790 $ 318,505 $ 1,253,091 $ 4,833,652 Special Mention — — — — — — — — Substandard (1) — — — — — — — — Substandard-nonaccrual 688 2,265 2,951 2,525 5,265 3,671 514 17,879 Doubtful-nonaccrual — — — — — — — — Total Consumer real estate – mortgage $ 573,808 $ 978,271 $ 1,059,671 $ 450,945 $ 213,055 $ 322,176 $ 1,253,605 $ 4,851,531 Current period gross charge-offs $ — (225) (91) (6) (89) (472) — $ (883) Construction and land development Pass $ 1,153,137 $ 1,930,062 $ 884,060 $ 12,102 $ 5,580 $ 6,369 $ 41,886 $ 4,033,196 Special Mention 2,728 — — 4,467 — — — 7,195 Substandard (1) — — — — — 82 — 82 Substandard-nonaccrual — 608 — — — — — 608 Doubtful-nonaccrual — — — — — — — — Total Construction and land development $ 1,155,865 $ 1,930,670 $ 884,060 $ 16,569 $ 5,580 $ 6,451 $ 41,886 $ 4,041,081 Current period gross charge-offs $ — — — — — (3) — $ (3) December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial and industrial Pass $ 3,778,326 $ 2,103,473 $ 1,127,096 $ 325,176 $ 215,158 $ 142,806 $ 3,753,575 $ 11,445,610 Special Mention 11,125 22,806 12,457 532 144 1,847 45,025 93,936 Substandard (1) 10,142 2,243 25,311 145 359 9,028 60,986 108,214 Substandard-nonaccrual 10,436 4,193 1,583 409 359 735 1,215 18,930 Doubtful-nonaccrual — — — 1 — — — 1 Total Commercial and industrial $ 3,810,029 $ 2,132,715 $ 1,166,447 $ 326,263 $ 216,020 $ 154,416 $ 3,860,801 $ 11,666,691 Current period gross charge-offs $ (3,428) (24,114) (13,857) (3,309) (111) (455) (15,268) $ (60,542) Consumer and other Pass $ 136,809 $ 28,774 $ 66,126 $ 37,015 $ 541 $ 656 $ 266,402 $ 536,323 Special Mention — — — — — — — — Substandard (1) — — — — — — — — Substandard-nonaccrual — — — — — — 75 75 Doubtful-nonaccrual — — — — — — — — Total Consumer and other $ 136,809 $ 28,774 $ 66,126 $ 37,015 $ 541 $ 656 $ 266,477 $ 536,398 Current period gross charge-offs $ (151) (629) (6,377) (2,808) (235) (110) (4,987) $ (15,297) Total loans Pass $ 7,731,335 $ 8,844,015 $ 5,742,666 $ 2,038,952 $ 1,202,431 $ 1,196,095 $ 5,479,475 $ 32,234,969 Special Mention 15,448 90,359 17,757 13,996 5,666 11,883 45,025 200,134 Substandard (1) 41,393 14,543 28,573 1,290 2,122 9,793 60,986 158,700 Substandard-nonaccrual 12,905 7,834 45,400 2,987 5,624 5,212 2,325 82,287 Doubtful-nonaccrual — — — 1 — — — 1 Total loans $ 7,801,081 $ 8,956,751 $ 5,834,396 $ 2,057,226 $ 1,215,843 $ 1,222,983 $ 5,587,811 $ 32,676,091 Current period gross charge-offs $ (3,579) $ (24,968) $ (20,325) $ (6,123) $ (435) $ (1,040) $ (20,255) $ (76,725) (1) |
Past Due Balances by Loan Classification | The table below presents the aging of past due balances by loan segment at December 31, 2023 and December 31, 2022 (in thousands): 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans December 31, 2023 Commercial real estate: Owner-occupied $ 1,671 $ 507 $ 3,398 $ 5,576 $ 4,039,320 $ 4,044,896 Non-owner occupied 40,577 489 153 41,219 7,494,275 7,535,494 Consumer real estate – mortgage 21,585 1,352 10,824 33,761 4,817,770 4,851,531 Construction and land development 621 28 608 1,257 4,039,824 4,041,081 Commercial and industrial 14,197 28,221 16,890 59,308 11,607,383 11,666,691 Consumer and other 5,286 1,868 1,496 8,650 527,748 536,398 Total $ 83,937 $ 32,465 $ 33,369 $ 149,771 $ 32,526,320 $ 32,676,091 December 31, 2022 Commercial real estate: Owner-occupied $ 2,112 $ 615 $ 1,139 $ 3,866 $ 3,583,391 $ 3,587,257 Non-owner occupied 359 48 1,681 2,088 6,540,531 6,542,619 Consumer real estate – mortgage 13,635 83 9,094 22,812 4,412,234 4,435,046 Construction and land development 221 102 130 453 3,679,045 3,679,498 Commercial and industrial 15,457 13,713 9,428 38,598 10,202,764 10,241,362 Consumer and other 4,056 1,688 746 6,490 549,333 555,823 Total $ 35,840 $ 16,249 $ 22,218 $ 74,307 $ 28,967,298 $ 29,041,605 |
Details of Changes in the Allowance for Loan Losses | The following table details the changes in the allowance for credit losses on loans from December 31, 2020 to December 31, 2021 to December 31, 2022 to December 31, 2023 by loan classification and the allocation of allowance for credit losses (in thousands): Commercial real estate - owner occupied Commercial real estate - non-owner occupied Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Total Allowance for Credit Losses: Balance at December 31, 2020 $ 23,298 $ 79,132 $ 33,304 $ 42,408 $ 98,423 $ 8,485 $ 285,050 Charged-off loans (1,420) (786) (632) (367) (46,213) (5,578) (54,996) Recovery of previously charged-off loans 1,609 969 2,288 372 7,485 3,550 16,273 Provision for credit losses on loans (3,869) (20,811) (2,856) (12,984) 52,645 4,781 16,906 Balance at December 31, 2021 $ 19,618 $ 58,504 $ 32,104 $ 29,429 $ 112,340 $ 11,238 $ 263,233 Charged-off loans (1,413) (185) (651) (150) (39,020) (12,757) (54,176) Recovery of previously charged-off loans 2,082 187 1,512 471 15,687 7,690 27,629 Provision for credit losses on loans 6,330 (18,027) 3,571 6,364 55,346 10,395 63,979 Balance at December 31, 2022 $ 26,617 $ 40,479 $ 36,536 $ 36,114 $ 144,353 $ 16,566 $ 300,665 Charged-off loans — — (883) (3) (60,542) (15,297) (76,725) Recovery of previously charged-off loans 76 1,632 2,114 338 15,556 8,403 28,119 Provision for credit losses on loans 1,997 15,576 33,587 2,693 48,845 (1,702) 100,996 Balance at December 31, 2023 $ 28,690 $ 57,687 $ 71,354 $ 39,142 $ 148,212 $ 7,970 $ 353,055 |
Schedule of Collateral Dependent Loans Individually Evaluated for ACL | The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, as of December 31, 2023 and December 31, 2022 (in thousands): Real Estate Business Assets Other Total December 31, 2023 Commercial real estate: Owner-occupied $ 22,284 $ — $ — $ 22,284 Non-owner occupied 69,577 — — 69,577 Consumer real estate – mortgage 20,389 — — 20,389 Construction and land development 668 — — 668 Commercial and industrial — 31,625 552 32,177 Consumer and other — — — — Total $ 112,918 $ 31,625 $ 552 $ 145,095 December 31, 2022 Commercial real estate: Owner-occupied $ 10,804 $ — $ — $ 10,804 Non-owner occupied 4,795 — — 4,795 Consumer real estate – mortgage 22,466 — — 22,466 Construction and land development 299 — — 299 Commercial and industrial — 12,327 — 12,327 Consumer and other — — 2 2 Total $ 38,364 $ 12,327 $ 2 $ 50,693 |
Financing Receivable, Nonaccrual | The table below presents the amortized cost basis of loans on nonaccrual status and loans past due 90 or more days and still accruing interest at December 31, 2023 and 2022. Also presented is the balance of loans on nonaccrual status at December 31, 2023 and 2022 for which there was no related allowance for credit losses recorded (in thousands): December 31, 2023 December 31, 2022 Total nonaccrual loans Nonaccrual loans with no allowance for credit losses Loans past due 90 or more days and still accruing Total nonaccrual loans Nonaccrual loans with no allowance for credit losses Loans past due 90 or more days and still accruing Commercial real estate: Owner-occupied $ 3,452 $ 122 $ — $ 1,882 $ — $ — Non-owner occupied 41,343 40,669 — 2,244 1,040 — Consumer real estate – mortgage 17,879 — 781 17,330 — — Construction and land development 608 — — 231 — — Commercial and industrial 18,931 519 3,802 16,345 8,003 3,663 Consumer and other 75 — 1,421 84 — 743 Total $ 82,288 $ 41,310 $ 6,004 $ 38,116 $ 9,043 $ 4,406 |
Modifications | The following table shows the amortized cost basis of the loans modified to borrowers experiencing financial difficulty at December 31, 2023, disaggregated by class of loans and type of modification granted and describes the financial effect of the modifications made to borrowers experiencing financial difficulty (in thousands): December 31, 2023 Payment Delay Term Extension Combination¹ Total % Total % Total % Total Commercial real estate: Owner-occupied — — % 5,528 0.14 % — — % 5,528 Non-owner occupied 12,244 0.16 % — — % 13,479 0.18 % 25,723 Consumer real estate – mortgage — — % — — % — — % — Construction and land development — — % — — % — — % — Commercial and industrial — — % 3,226 0.03 % — — % 3,226 Consumer and other — — % — — % — — % — 12,244 8,754 13,479 34,477 ¹ The combination includes payment delay, term extension, and an interest rate reduction December 31, 2023 Financial Effect Payment Delay: Non-owner occupied Implemented interest-only payments until loan maturity Term Extension: Owner Occupied Added a weighted average 0.46 years to the term of the modified loans Commercial and industrial Added a weighted average 0.25 years to the term of the modified loans Combination: Non-owner Occupied Reduced weighted average contractual interest rate by 0.55%, added a weighted average 2 years to the term, and implemented an alternative payment schedule until loan maturity |
Summary of Loan Portfolio Credit Risk Exposure | Pinnacle Financial analyzes its commercial loan portfolio to determine if a concentration of credit risk exists to any industries. Pinnacle Financial utilizes broadly accepted industry classification systems in order to classify borrowers into various industry classifications. Pinnacle Financial had 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 December 31, 2023 with the comparative exposures for December 31, 2022 (in thousands): At December 31, 2023 Outstanding Principal Balances Unfunded Commitments Total exposure Total Exposure at December 31, 2022 Lessors of nonresidential buildings $ 4,674,176 $ 1,242,159 $ 5,916,335 $ 7,058,045 Lessors of residential buildings 2,028,622 1,150,419 3,179,041 3,725,186 New housing for-sale builders 577,090 819,563 1,396,653 1,763,089 Music publishers 787,407 432,374 1,219,781 1,127,636 Total $ 8,067,295 $ 3,644,515 $ 11,711,810 $ 13,673,956 |
Premises and Equipment and Le_2
Premises and Equipment and Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Premises and Equipment and Lease Commitments [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment at December 31, 2023 and 2022 are summarized as follows (in thousands): Range of Useful Lives 2023 2022 Land Not applicable $ 36,528 $ 71,741 Buildings 15 years - 30 years 103,919 206,434 Leasehold improvements 14 years - 35 years 74,606 62,209 Furniture and equipment 3 years - 20 years 183,919 144,979 398,972 485,363 Less: accumulated depreciation and amortization 142,095 157,478 $ 256,877 $ 327,885 |
Schedule of Lease Assets and Liabilities | Right-of-use assets and lease liabilities relating to Pinnacle Financial's operating and finance leases are as follows at December 31, 2023 and 2022 (in thousands): December 31, 2023 December 31, 2022 Right-of-use assets: Operating leases $ 296,272 $ 126,767 Finance leases 1,092 1,318 Total right-of-use assets $ 297,364 $ 128,085 Lease liabilities: Operating leases $ 304,944 $ 133,108 Finance leases 2,146 2,458 Total lease liabilities $ 307,090 $ 135,566 |
Schedule of Lease Costs and Other Information | The total lease cost related to operating leases and short term leases is recognized on a straight-line basis over the lease term. For finance leases, right-of-use assets are amortized on a straight-line basis over the lease term and interest imputed on the lease liability is recognized using the effective interest method. The components of Pinnacle Financial's total lease cost were as follows for the years ended December 31, 2023, 2022 and 2021 (in thousands): For the years ended December 31, 2023 2022 2021 Operating lease cost $ 30,913 $ 18,292 $ 15,696 Short-term lease cost 349 401 297 Finance lease cost: Interest on lease liabilities 167 189 208 Amortization of right-of-use asset 226 226 226 Sublease income (1,365) (1,357) (1,309) Net lease cost $ 30,290 $ 17,751 $ 15,118 The weighted average remaining lease term and weighted average discount rate for operating and finance leases at December 31, 2023 and 2022 are as follows: December 31, 2023 December 31, 2022 Weighted average remaining lease term Operating leases 12.00 years 10.44 years Finance leases 4.84 years 5.84 years Weighted average discount rate Operating leases 4.29 % 3.11 % Finance leases 7.22 % 7.22 % Cash flows related to operating and finance leases during the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands): For the years ended December 31, 2023 2022 2021 Operating cash flows related to operating leases $ 28,614 $ 16,956 $ 14,712 Operating cash flows related to finance leases $ 167 $ 189 $ 208 Financing cash flows related to finance leases $ 311 $ 281 $ 261 |
Schedule of Future Minimum Finance Lease Payments | Future undiscounted lease payments for operating and finance leases with initial terms of more than 12 months are as follows at December 31, 2023 (in thousands): Operating Leases Finance Leases 2024 $ 36,814 $ 527 2025 35,058 527 2026 32,687 527 2027 31,623 527 2028 31,133 439 Thereafter 230,286 — Total undiscounted lease payments 397,601 2,547 Less: imputed interest (92,657) (401) Net lease liabilities $ 304,944 $ 2,146 |
Schedule of Future Minimum Operating Lease Payments | Future undiscounted lease payments for operating and finance leases with initial terms of more than 12 months are as follows at December 31, 2023 (in thousands): Operating Leases Finance Leases 2024 $ 36,814 $ 527 2025 35,058 527 2026 32,687 527 2027 31,623 527 2028 31,133 439 Thereafter 230,286 — Total undiscounted lease payments 397,601 2,547 Less: imputed interest (92,657) (401) Net lease liabilities $ 304,944 $ 2,146 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Interest-Bearing Deposit Liabilities [Abstract] | |
Scheduled Maturities of Time Deposits | At December 31, 2023, the scheduled maturities of time deposits are as follows (in thousands): 2024 $ 4,093,153 2025 590,695 2026 133,782 2027 14,168 2028 8,955 Thereafter — $ 4,840,753 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Advance from Federal Home Loan Bank [Abstract] | |
Scheduled Maturities of Advances and Interest Rates | At December 31, 2023 and 2022, Pinnacle Bank had outstanding advances from the FHLB totaling approximately $2.1 billion and $464.4 million, respectively. The scheduled maturities of FHLB advances at December 31, 2023 and interest rates are as follows (in thousands): Scheduled maturities Weighted average interest rates (1) 2024 $ — — % 2025 366,250 4.97 % 2026 162,500 4.00 % 2027 237,500 4.14 % 2028 1,375,000 3.97 % Thereafter 12 2.75 % 2,141,262 Deferred costs (1,070) Fair value hedging adjustment (2,023) Total Federal Home Loan Bank advances $ 2,138,169 Weighted average interest rate 4.17 % (1) Some FHLB advances include variable interest rates and could increase in the future. The table reflects rates in effect as of December 31, 2023. |
Other borrowings Other Borrowin
Other borrowings Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subordinated Debt [Abstract] | |
Schedule of Maturities of Long-term Debt | Pinnacle Financial has twelve wholly-owned subsidiaries that are statutory business trusts created for the exclusive purpose of issuing 30-year capital trust preferred securities, and Pinnacle Financial has entered into certain other subordinated debt agreements. These instruments are outlined below as of December 31, 2023 (in thousands): Name Date Established Maturity Total Debt Outstanding Interest Rate at December 31, 2023 Coupon Structure Trust preferred securities Pinnacle Statutory Trust I December 29, 2003 December 30, 2033 $ 10,310 8.44 % 3-month SOFR + 2.80% (1) Pinnacle Statutory Trust II September 15, 2005 September 30, 2035 20,619 6.99 % 3-month SOFR + 1.40% (1) Pinnacle Statutory Trust III September 07, 2006 September 30, 2036 20,619 7.24 % 3-month SOFR + 1.65% (1) Pinnacle Statutory Trust IV October 31, 2007 September 30, 2037 30,928 8.50 % 3-month SOFR + 2.85% (1) BNC Capital Trust I April 03, 2003 April 15, 2033 5,155 8.91 % 3-month SOFR + 3.25% (1) BNC Capital Trust II March 11, 2004 April 07, 2034 6,186 8.51 % 3-month SOFR + 2.85% (1) BNC Capital Trust III September 23, 2004 September 23, 2034 5,155 8.06 % 3-month SOFR + 2.40% (1) BNC Capital Trust IV September 27, 2006 December 31, 2036 7,217 7.29 % 3-month SOFR + 1.70% (1) Valley Financial Trust I June 26, 2003 June 26, 2033 4,124 8.72 % 3-month SOFR + 3.10% (1) Valley Financial Trust II September 26, 2005 December 15, 2035 7,217 7.14 % 3-month SOFR + 1.49% (1) Valley Financial Trust III December 15, 2006 January 30, 2037 5,155 7.38 % 3-month SOFR + 1.73% (1) Southcoast Capital Trust III August 05, 2005 September 30, 2035 10,310 7.09 % 3-month SOFR + 1.50% (1) Subordinated Debt Pinnacle Financial Subordinated Notes September 11, 2019 September 15, 2029 300,000 4.13 % Fixed (2) Debt issuance costs and fair value adjustment (8,057) Total subordinated debt and other borrowings $ 424,938 (1) Rate transitioned to three month term SOFR plus a comparable tenor spread adjustment beginning after July 1, 2023 as three month LIBOR ceased to be published effective July 1, 2023. (2) Previously was to transition to three |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income tax expense (benefit) attributable to continuing operations | Income tax expense attributable to continuing operations for each of the years ended December 31 is as follows (in thousands): 2023 2022 2021 Current tax expense : Federal $ 67,711 $ 104,141 $ 125,016 State 11,775 12,870 11,798 Total current tax expense 79,486 117,011 136,814 Deferred tax expense (benefit): Federal 67,446 15,082 (12,149) State 4,922 4,658 (83) Total deferred tax (benefit) expense 72,368 19,740 (12,232) Total income tax expense $ 151,854 $ 136,751 $ 124,582 |
Income tax rate reconciliation | Pinnacle Financial's income tax expense differs from the amounts computed by applying the Federal income tax statutory rate of 21% to income before income taxes. A reconciliation of the differences for each of the years in the three-year period ended December 31, 2023 is as follows (in thousands): 2023 2022 2021 Income tax expense at statutory rate $ 149,941 $ 146,474 $ 136,900 State excise tax expense, net of federal tax effect 13,191 13,847 9,255 Non-deductible executive compensation 5,186 5,481 2,149 Tax-exempt securities (21,663) (18,730) (15,243) Federal tax credits (5,238) (5,019) (4,712) Bank owned life insurance income (4,324) (4,599) (4,413) Bank owned life insurance surrender 8,572 — — Non-deductible FDIC assessment 5,361 2,331 1,697 Insurance premiums — (36) (273) Excess tax benefits associated with equity compensation (208) (3,027) (2,475) Other items 1,036 29 1,697 Income tax expense $ 151,854 $ 136,751 $ 124,582 |
Components of deferred income taxes included in other assets | The components of deferred income taxes included in other assets in the accompanying consolidated balance sheets at December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 Deferred tax assets: Allowance for credit losses $ 86,911 $ 77,015 Loans 4,659 10,576 Insurance 784 817 Accrued liability for supplemental retirement agreements 7,005 7,595 Restricted stock and stock options 6,251 7,795 Securities 49,331 67,286 Lease liability 76,918 35,589 Other real estate owned 750 1,526 Net federal operating loss carryforward and credits 1,064 1,168 Annual incentive compensation 11,842 21,322 Partnership interests 13,541 31,559 Allowance for off balance sheet credit exposures 4,367 6,527 Tax credit investments — 8,282 FDIC special assessment 7,250 — Other deferred tax assets 2,532 3,267 Total deferred tax assets 273,205 280,324 2023 2022 Deferred tax liabilities: Depreciation and amortization 23,140 17,723 Core deposit and other intangible assets 6,087 9,070 Cash flow hedge 836 6,854 REIT dividends 2,604 2,338 FHLB related liabilities 125 328 Equity method investment 42 76 Right-of-use assets and other leasing transactions 74,068 33,157 Leases 67,711 35,547 Subordinated debt 1,412 1,662 Tax credit investments 7,614 — Other deferred tax liabilities 2,356 2,054 Total deferred tax liabilities 185,995 108,809 Net deferred tax assets $ 87,210 $ 171,515 |
Rollforward of uncertain tax positions | A reconciliation of the beginning and ending unrecognized tax benefit related to state uncertain tax positions for each of the years in the three-year period ended December 31, 2023 is as follows (in thousands): 2023 2022 2021 Balance at January 1, $ 15,752 $ 12,737 $ 9,658 Increases due to tax positions taken during the current year 642 3,721 3,647 Increases due to tax positions taken during a prior year — — — Decreases due to the lapse of the statute of limitations during the current year (1,340) (706) (568) Decreases due to settlements with the taxing authorities during the current year (6,248) — — Balance at December 31, $ 8,806 $ 15,752 $ 12,737 |
Stock Options, Restricted Sha_2
Stock Options, Restricted Shares and Restricted Share Units (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity within the equity incentive plans during each of the years in the three-year period ended December 31, 2023 and information regarding expected vesting, contractual terms remaining, intrinsic values and other matters was as follows: Number Weighted-Average Exercise Price Weighted-Average Contractual Remaining Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2020 101,769 $ 23.46 Granted — — Stock options exercised (45,125) 22.18 Forfeited (497) 20.00 Outstanding at December 31, 2021 56,147 $ 24.51 Granted — — Stock options exercised (15,959) 23.28 Forfeited — — Outstanding at December 31, 2022 40,188 $ 25.00 Granted — — Stock options exercised (40,188) 25.00 Forfeited — — Outstanding at December 31, 2023 — $ — 0.00 $ — Options exercisable at December 31, 2023 — $ — 0.00 $ — . |
Summary of Activity for Unvested Restricted Share Awards | A summary of activity for unvested restricted share awards for the years ended December 31, 2023, 2022, and 2021 follows: Number Grant Date Weighted-Average Cost Unvested at December 31, 2020 594,669 $ 56.97 Shares awarded 249,641 77.00 Restrictions lapsed and shares released to associates/directors (193,846) 56.47 Shares forfeited (37,129) 62.79 Unvested at December 31, 2021 613,335 $ 64.93 Shares awarded 286,445 98.06 Restrictions lapsed and shares released to associates/directors (188,394) 64.53 Shares forfeited (35,775) 75.35 Unvested at December 31, 2022 675,611 $ 78.53 Shares awarded 269,025 71.84 Restrictions lapsed and shares released to associates/directors (206,956) 73.17 Shares forfeited (34,281) 75.84 Unvested at December 31, 2023 703,399 $ 77.68 Pinnacle Financial grants restricted share awards to associates (including certain members of executive management) and outside directors with time-based vesting criteria. The following tables outline restricted stock grants that were made by grant year, grouped by similar vesting criteria, during the three-year period ended December 31, 2023. The table below reflects the life-to-date activity for these awards: Grant Group (1) Vesting Shares Restrictions lapsed and shares released to participants Shares withheld Shares forfeited by participants (4) Shares unvested Time Based Awards 2021 Associates (2) 3 — 5 237,811 60,966 24,552 30,455 121,838 2022 Associates (2) 3 — 5 276,965 37,226 15,019 16,723 207,997 2023 Associates (2) 3 — 5 258,185 328 185 15,995 241,677 Outside Director Awards (3) 2021 Outside directors 1 11,830 10,222 1,608 — — 2022 Outside directors 1 9,480 7,740 1,740 — — 2023 Outside directors 1 10,840 — — — 10,840 (1) Groups include employees (referred to as associates above) and outside directors. When the restricted shares are awarded, a participant receives voting rights and forfeitable dividend rights with respect to the shares, but is not able to transfer the shares until the restrictions have lapsed. Once the restrictions lapse, the participant is taxed on the value of the award and may elect to sell some shares (or have Pinnacle Financial withhold some shares) to pay the applicable income taxes associated with the award. Alternatively, the recipient can pay the withholding taxes in cash. For time-based vesting restricted share awards, dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by Pinnacle Financial at the time of termination. For awards to Pinnacle Financial's directors, dividends are placed into escrow until the forfeiture restrictions on such shares lapse. (2) The forfeiture restrictions on these restricted share awards lapse in equal annual installments on the anniversary date of the grant. (3) Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapse on March 1, 2024 based on each individual board member meeting attendance goals for the various board and board committee meetings to which each member was scheduled to attend. (4) These shares represent forfeitures resulting from recipients whose employment or board membership was terminated during the life-to-date period ended December 31, 2023. 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 Unit Awards Outstanding | Restricted Stock Unit Awards A summary of activity for unvested restricted stock unit awards for the years ended December 31, 2023, 2022, and 2021 follows: Number Grant Date Unvested at December 31, 2020 — $ — Restricted stock units awarded 56,864 71.21 Restrictions lapsed and underlying shares released to associates (128) 70.95 Restricted stock units forfeited (368) 70.95 Unvested at December 31, 2021 56,368 $ 71.22 Restricted stock units awarded 38,133 104.80 Restrictions lapsed and underlying shares released to associates (18,897) 71.24 Restricted stock units forfeited (1,621) 85.50 Unvested at December 31, 2022 73,983 $ 88.21 Restricted stock units awarded 70,716 70.25 Restrictions lapsed and underlying shares released to associates (34,465) 83.75 Restricted stock units forfeited (7,357) 78.83 Unvested at December 31, 2023 102,877 $ 78.03 Pinnacle Financial grants restricted stock units to its Named Executive Officers (NEOs) and leadership team members with time-based vesting criteria. Compensation expense associated with time-based vesting restricted stock unit awards is recognized over the time period that the restrictions associated with the awards lapse on a straight-line basis based on the total cost of the award. The following table outlines restricted stock unit grants that were made, grouped by similar vesting criteria, during the three-year period ended December 31, 2023. The table reflects the life-to-date activity for these awards: Grant year Vesting Shares Restrictions lapsed and shares released to participants Shares withheld for taxes by participants Shares forfeited by participants (1) Shares unvested 2021 3 56,864 24,905 12,653 2,706 16,600 2022 3 38,133 8,848 4,204 2,300 22,781 2023 3 70,716 2,140 740 4,340 63,496 (1) These shares represent forfeitures resulting from recipients whose employment was terminated during the life-to-date period ended December 31, 2023. Dividend equivalents are held in escrow for award recipients for dividends paid prior to the forfeiture restrictions lapsing. Such dividend equivalents are not released from escrow if an award is forfeited. Performance Stock Unit Awards The following table details the performance stock unit awards outstanding at December 31, 2023: Grant year Units Awarded Applicable performance periods associated with each tranche (fiscal year) Service period per tranche Subsequent Period in which units to be settled into shares of common stock (2) Named Executive Officers (NEOs) (1) Leadership Team other than NEOs 2023 103,136 — 247,515 61,673 2023-2025 0 0 2026 2022 56,465 — 135,514 32,320 2022-2024 0 0 2025 2022 — — 230,000 — 2022-2024 0 1 2026 2021 89,234 — 214,155 45,240 2021-2023 0 0 2024 2020 136,137 — 204,220 59,648 2020 2 3 2025 2021 2 2 2025 2022 2 1 2025 2019 166,211 — 249,343 52,244 2019 2 3 2024 2020 2 2 2024 2021 2 1 2024 (1) The named executive officers are awarded a range of awards that generally may be earned based on attainment of goals between a target level of performance and a maximum level of performance. The 230,000 performance units awarded to the NEOs in 2022 may be earned based on target level performance and do not include maximum level payout. (2) Performance stock unit awards granted in or after 2021, if earned, will be settled in shares of Pinnacle Financial common stock in the period noted in the table, if the performance criterion included in the applicable performance unit award agreement are met. |
Schedule of Share Based Compensation Expense | A summary of stock compensation expense, net of the impact of income taxes, related to restricted share awards, restricted stock unit awards and performance stock unit awards for each year in the three-year period ended December 31, 2023, follows (in thousands): 2023 2022 2021 Restricted stock expense $ 41,879 $ 39,552 $ 24,952 Income tax benefit (1) 10,470 10,339 6,522 Restricted stock expense, net of income tax benefit $ 31,409 $ 29,213 $ 18,430 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Interest Rate Swaps | Non-hedge derivatives For derivatives not designated as hedges, the gain or loss is recognized in current period earnings. Pinnacle Financial enters into 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 customer transactions as of December 31, 2023 and 2022 is included in the following table (in thousands): December 31, 2023 December 31, 2022 Notional Estimated Fair Value (1) Notional Amount Estimated Fair Value (1) Interest rate swap agreements: Assets $ 2,037,740 $ 66,462 $ 1,620,520 $ 39,763 Liabilities 2,037,740 (67,206) 1,620,520 (96,483) Total non-hedging derivatives $ 4,075,480 $ (744) $ 3,241,040 $ (56,720) (1) The variation margin payments for derivatives cleared through central clearing houses are characterized as settlements. At December 31, 2023, no notional amounts of interest rate swap agreements designated as non-hedge derivatives cleared through clearing houses. At December 31, 2022, the notional amount of interest rate swap agreements designated as non-hedge derivatives cleared through clearing houses was $827.3 million with a fair value that approximates zero due to $56.3 million in variation margin payments. The effects of Pinnacle Financial's interest rate swaps to facilitate customers' transactions on the income statement during the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands): Amount of Gain (Loss) Recognized in Income Location of Gain (Loss) Recognized in Income Year ended December 31, 2023 2022 2021 Interest rate swap agreements Other noninterest income $ (308) $ 53 $ 846 |
Schedule of Derivative Instruments | Derivatives designated as cash flow hedges For derivative instruments that are designated and qualify as a cash flow hedge, the aggregate fair value of the derivative instrument is recorded in other assets or other liabilities with any gain or loss related to changes in fair value recorded in accumulated other comprehensive income, net of tax. The gain or loss is reclassified into earnings in the same period during which the hedged asset or liability affects earnings and is presented in the same income statement line item as the earnings effect of the hedged asset or liability. Pinnacle Financial uses forward cash flow hedge relationships in an effort to manage future interest rate exposure. The hedging strategy converts the SOFR-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 2022, Pinnacle Financial paid $95.7 million to purchase interest rate floors and interest rate collars with notional amounts totaling $1.8 billion to mitigate the impact of changing interest rates on SOFR-based variable rate loans. A summary of Pinnacle Financial's cash flow hedge relationships as of December 31, 2023 and 2022 is as follows (in thousands): December 31, 2023 December 31, 2022 Balance Sheet Location Weighted Average Remaining Maturity Receive Rate Pay Rate Notional Estimated Notional Estimated Asset derivatives Interest rate floor - loans Other assets 3.84 4.00%-4.50% minus USD-Term SOFR 1M N/A $ 875,000 $ 36,483 $ 875,000 $ 48,622 Interest rate collar - loans Other assets 3.84 4.25%-4.75% minus USD-Term SOFR 1M USD-Term SOFR 1M minus 6.75%-7.00% $ 875,000 $ 38,314 $ 875,000 $ 45,553 $ 1,750,000 $ 74,797 $ 1,750,000 $ 94,175 The effects of Pinnacle Financial's cash flow hedge relationships on the statement of comprehensive income (loss) during the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands): Amount of Gain (Loss) Recognized in Other Comprehensive Income Years ended December 31, 2023 2022 2021 Asset derivatives Interest rate floor - loans $ (7,414) $ 1,002 $ (15,034) The cash flow hedges were determined to be highly effective during the periods presented and as a result qualified for hedge accounting treatment. If a hedge were deemed to be ineffective, the amount included in accumulated other comprehensive income (loss) would be reclassified into a line item within the statement of income that impacts operating results. A hedging relationship is no longer considered to be effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence or Pinnacle Financial discontinues hedge accounting. Gains on cash flow hedges totaling $9.7 million, $10.0 million and $9.6 million, net of tax, were reclassified from accumulated other comprehensive income (loss) into net income during the years ended December 31, 2023, 2022 and 2021, respectively. Approximately $9.0 million in unrealized gains, net of tax, are expected to be reclassified from accumulated other comprehensive income (loss) into net income over the twelve months ended December 31, 2024. 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. The hedging strategy on securities converts the fixed interest rates to variable interest rates based on SOFR or federal funds 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. During 2023, Pinnacle Financial entered into fair value hedges with aggregate notional amounts of $1.2 billion to mitigate the effect of changing interest rates on FHLB advances with payments beginning on various dates throughout 2024 and the first quarter of 2025. A summary of Pinnacle Financial's fair value hedge relationships as of December 31, 2023 and 2022 is as follows (in thousands): December 31, 2023 December 31, 2022 Balance Sheet Location Weighted Average Remaining Maturity (In Years) Weighted Average Pay Rate Receive Rate Notional Amount Estimated Fair Value (1) Notional Amount Estimated Fair Value (1) Asset derivatives Interest rate swaps - securities Other assets 10.16 1.97% Federal funds/SOFR $ 543,061 $ 42,983 $ 1,420,724 $ 56,056 Interest rate swaps - borrowings Other assets 3.53 N/A —% $ 750,000 $ 3,654 $ — $ — Liability derivatives Interest rate swaps - securities Other liabilities 11.22 3.10% Federal funds/SOFR 1,569,078 (1,275) — — Interest rate swaps - borrowings Other liabilities 4.09 N/A —% 425,000 (1,656) — — Total fair value derivatives $ 3,287,139 $ 43,706 $ 1,420,724 $ 56,056 (1) The variation margin payments for derivatives cleared through central clearing houses are characterized as settlements. At December 31, 2023 and 2022, the notional amount of fair value derivatives hedges cleared through clearing houses is $2.0 billion and $877.7 million with a fair value that approximates zero due to $4.0 million and $47.9 million in variation margin payments. Notional amounts totaling $392.2 million as of December 31, 2023 receive a variable rate of interest based on the daily compounded federal funds rate and notional amounts totaling $2.9 billion as of December 31, 2023 receive a variable rate of interest based on the daily compounded secured overnight financing rate. The effects of Pinnacle Financial's fair value hedge relationships on the income statement during the years end December 31, 2023, 2022 and 2021 were as follows (in thousands): Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income Year ended December 31, Securities 2023 2022 2021 Interest rate swaps Interest income on securities $ (14,348) $ 80,728 $ 42,642 Securities available-for-sale Interest income on securities $ 14,348 $ (80,728) $ (42,642) Location of Gain (Loss) Amount of Loss Recognized in Income Years ended December 31, FHLB advances 2023 2022 2021 Interest rate swaps - FHLB advances Interest expense on FHLB advances and other borrowings $ 1,998 $ — $ — FHLB advances Interest expense on FHLB advances and other borrowings $ (1,998) $ — $ — The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at December 31, 2023 and 2022 (in thousands): Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Line item on the balance sheet Securities available-for-sale $ 2,074,621 $ 1,445,511 $ (41,708) $ (56,056) FHLB advances $ 1,173,002 $ — $ (1,998) $ — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the financial instruments carried at fair value on a recurring basis as of December 31, 2023 and 2022, 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 Models with significant observable market parameters Models with significant unobservable market parameters December 31, 2023 Investment securities available-for-sale: U.S. Treasury securities $ 893,412 $ — $ 893,412 $ — U.S. Government agency securities 262,730 — 262,730 — Mortgage-backed securities 947,390 — 947,390 — State and municipal securities 1,585,895 — 1,585,416 479 Asset-backed securities 191,635 — 191,635 — Corporate notes and other 436,468 — 436,468 — Total investment securities available-for-sale 4,317,530 — 4,317,051 479 Other investments 179,487 — 22,347 157,140 Other assets 197,541 — 197,541 — Total assets at fair value $ 4,694,558 $ — $ 4,536,939 $ 157,619 Other liabilities $ 79,068 $ — $ 79,068 $ — Total liabilities at fair value $ 79,068 $ — $ 79,068 $ — December 31, 2022 Investment securities available-for-sale: U.S. Treasury securities $ 194,184 $ — $ 194,184 $ — U.S. Government agency securities 396,157 — 396,157 — Mortgage-backed securities 971,576 — 971,576 — State and municipal securities 1,412,306 — 1,411,677 629 Asset-backed securities 117,403 — 117,403 — Corporate notes and other 467,244 — 467,244 — Total investment securities available-for-sale 3,558,870 — 3,558,241 629 Other investments 153,011 — 22,029 130,982 Other assets 190,629 — 190,629 — Total assets at fair value $ 3,902,510 $ — $ 3,770,899 $ 131,611 Other liabilities $ 96,483 $ — $ 96,483 $ — Total liabilities at fair value $ 96,483 $ — $ 96,483 $ — |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following table presents assets measured at fair value on a nonrecurring basis as of December 31, 2023 and 2022 (in thousands): December 31, 2023 Total carrying value in the consolidated balance sheet Quoted market prices in an active market Models with significant observable market parameters Models with significant unobservable market Other real estate owned $ 3,937 $ — $ — $ 3,937 Collateral dependent loans (1) 52,167 — — 52,167 Total $ 56,104 $ — $ — $ 56,104 December 31, 2022 Other real estate owned $ 7,952 $ — $ — $ 7,952 Collateral dependent loans (1) 33,767 — — 33,767 Total $ 41,719 $ — $ — $ 41,719 (1) The carrying values of collateral dependent loans at December 31, 2023 and 2022 are net of valuation allowances of $18.6 million and $6.5 million, respectively. |
Rollforward of the Balance Sheet Amounts, Unobservable Input Reconciliation | For the year ended December 31, 2023 2022 Available-for-sale Securities Other Other Available-for-sale Securities Other Other Fair value, Jan. 1 $ 629 $ 130,982 $ — $ 828 $ 100,996 $ — Total net realized gains included in income 4 3,112 — 7 10,605 — Change in unrealized gains/losses included in other comprehensive income (loss) 5 — — (48) — — Purchases — 32,515 — — 33,208 — Issuances — — — — — — Settlements (159) (9,469) — (158) (13,827) — Transfers out of Level 3 — — — — — — Fair value, Dec. 31 $ 479 $ 157,140 $ — $ 629 $ 130,982 $ — Total realized gains included in income $ 4 $ 3,112 $ — $ 7 $ 10,605 $ — |
Carrying Amounts, Estimated Fair Value and Placement in the Fair Value Hierarchy of Financial Instruments | The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at December 31, 2023 and 2022. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash, cash equivalents, interest-bearing due from banks and restricted cash, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as non-interest bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity (in thousands). Carrying/ Estimated Fair Value (1) Quoted market prices in an active market Models with significant observable market parameters Models with significant unobservable market December 31, 2023 Financial assets: Securities purchased with agreement to resell $ 558,009 $ 461,375 $ — $ — $ 461,375 Securities held-to-maturity 3,006,357 2,775,184 — 2,775,184 — Loans, net 32,323,036 31,863,583 — — 31,863,583 Consumer loans held-for-sale 104,217 104,626 — 104,626 — Commercial loans held-for-sale 9,280 9,316 — 9,316 — Financial liabilities: Deposits and securities sold under agreements to repurchase 38,749,299 37,954,938 — — 37,954,938 Federal Home Loan Bank advances 2,138,169 2,166,912 — — 2,166,912 Subordinated debt and other borrowings 424,938 462,399 — — 462,399 Carrying/ Estimated Fair Value (1) Quoted market prices in an active market Models with significant observable market parameters Models with significant unobservable market December 31, 2022 Financial assets: Securities purchased with agreement to resell $ 513,276 $ 440,390 $ — $ — $ 440,390 Securities held-to-maturity 3,079,050 2,744,946 — 2,744,946 — Loans, net 28,740,940 27,901,662 — — 27,901,662 Consumer loans held-for-sale 42,237 42,353 — 42,353 — Commercial loans held-for-sale 21,093 21,151 — 21,151 — Financial liabilities: Deposits and securities sold under agreements to repurchase 35,156,148 34,435,447 — — 34,435,447 Federal Home Loan Bank advances 464,436 477,673 — — 477,673 Subordinated debt and other borrowings 424,055 430,884 — — 430,884 (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. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entities [Abstract] | |
Summary of Variable Interest Entities | December 31, 2023 December 31, 2022 Type Maximum Liability Maximum Liability Classification Low income housing partnerships $ 260,476 $ — $ 228,372 $ — Other Assets Other tax credit investments 27,600 — 6,118 — Other Assets Trust preferred issuances N/A 132,995 N/A 132,995 Subordinated Debt Managed discretionary trusts N/A N/A N/A N/A N/A |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Summary of Regulatory Capital Requirement | Management believes, as of December 31, 2023, that Pinnacle Financial and Pinnacle Bank met all capital adequacy requirements to which they are subject. To be categorized as well-capitalized under applicable banking regulations, Pinnacle Financial and Pinnacle Bank must maintain certain total, Tier 1, common equity Tier 1 and Tier 1 leverage capital 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 of 2.5% is not included in the required minimum ratios of the table presented below. Pinnacle Financial's and Pinnacle Bank's actual capital amounts and ratios are presented in the following table (in thousands): Actual Minimum Capital Minimum Amount Ratio Amount Ratio Amount Ratio December 31, 2023 Total capital to risk weighted assets: Pinnacle Financial $ 5,115,755 12.7 % $ 3,216,424 8.0 % $ 4,020,530 10.0 % Pinnacle Bank $ 4,797,278 12.0 % $ 3,207,699 8.0 % $ 4,009,623 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 4,354,759 10.8 % $ 2,412,318 6.0 % $ 2,412,318 6.0 % Pinnacle Bank $ 4,465,282 11.1 % $ 2,405,774 6.0 % $ 3,207,699 8.0 % Common equity Tier 1 capital: Pinnacle Financial $ 4,137,510 10.3 % $ 1,809,238 4.5 % N/A N/A Pinnacle Bank $ 4,465,159 11.1 % $ 1,804,330 4.5 % $ 2,606,255 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 4,354,759 9.4 % $ 1,853,213 4.0 % N/A N/A Pinnacle Bank $ 4,465,282 9.7 % $ 1,847,972 4.0 % $ 2,309,965 5.0 % December 31, 2022 Total capital to risk weighted assets: Pinnacle Financial $ 4,584,292 12.4 % $ 2,949,276 8.0 % $ 3,686,595 10.0 % Pinnacle Bank $ 4,282,742 11.6 % $ 2,941,082 8.0 % $ 3,676,353 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 3,888,100 10.5 % $ 2,211,957 6.0 % $ 2,211,957 6.0 % Pinnacle Bank $ 4,015,550 10.9 % $ 2,205,812 6.0 % $ 2,941,082 8.0 % Common equity Tier 1 capital: Pinnacle Financial $ 3,670,851 10.0 % $ 1,658,968 4.5 % N/A N/A Pinnacle Bank $ 4,015,427 10.9 % $ 1,654,359 4.5 % $ 2,389,629 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 3,888,100 9.7 % $ 1,595,457 4.0 % N/A N/A Pinnacle Bank $ 4,015,550 10.1 % $ 1,591,502 4.0 % $ 1,989,378 5.0 % (*) Average assets for the above calculations were based on the most recent quarter. |
Other Income and Expenses (Tabl
Other Income and Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Noninterest Income and Noninterest Expense [Abstract] | |
Other Noninterest Income | Years ended 2023 2022 2021 Other noninterest income: Interchange and other consumer fees $ 69,709 $ 68,022 $ 57,263 Bank-owned life insurance 15,797 21,033 18,942 Loan swap fees 7,851 5,812 5,414 SBA loan sales 3,983 7,036 12,242 Income from other equity investments 8,732 10,605 23,109 Other noninterest income 26,886 23,456 12,824 Total other noninterest income $ 132,958 $ 135,964 $ 129,794 |
Other Noninterest Expense | Other noninterest expense: Deposit related expenses $ 78,757 $ 28,972 $ 24,003 Lending related expenses 50,109 52,700 39,578 Wealth management related expenses 2,934 2,565 1,950 Audit, exam and insurance expense 10,887 9,209 11,259 Administrative and other expenses 31,812 27,375 23,169 Total other noninterest expense $ 174,499 $ 120,821 $ 99,959 |
Parent Company Only Financial_2
Parent Company Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS 2023 2022 Assets: Cash and cash equivalents $ 197,079 $ 186,572 Investments in bank subsidiary 6,126,172 5,626,844 Investments in consolidated subsidiaries 14,031 12,202 Investment in unconsolidated subsidiaries: Statutory Trusts 3,995 3,995 Other investments 67,848 56,957 Current income tax receivable 32,466 33,870 Other assets 144,597 57,980 $ 6,586,188 $ 5,978,420 Liabilities and shareholders' equity: Subordinated debt and other borrowings 424,938 424,055 Other liabilities 125,462 34,973 Shareholders' equity 6,035,788 5,519,392 $ 6,586,188 $ 5,978,420 |
CONDENSED STATEMENTS OF OPERATIONS | CONDENSED STATEMENTS OF OPERATIONS 2023 2022 2021 Revenues: Income from bank subsidiary $ 106,203 $ 110,834 $ 99,766 Income from nonbank subsidiaries 750 145 89 Income from equity method investment — 33,817 33,169 Other income 12,360 6,478 14,945 Expenses: Interest expense 23,263 18,590 22,903 Personnel expense, including stock compensation 41,879 39,552 24,952 Other expense 3,180 3,025 2,697 Income before income taxes and equity in undistributed income of subsidiaries 50,991 90,107 97,417 Income tax benefit (13,547) (8,444) (3,088) Income before equity in undistributed income of subsidiaries 64,538 98,551 100,505 Equity in undistributed income of bank subsidiary 496,236 461,004 424,978 Equity in undistributed income of nonbank subsidiaries 1,378 1,187 1,840 Net income $ 562,152 $ 560,742 $ 527,323 Preferred stock dividends 15,192 15,192 15,192 Net income available to common shareholders $ 546,960 $ 545,550 $ 512,131 |
CONDENSED STATEMENTS OF CASH FLOWS | CONDENSED STATEMENTS OF CASH FLOWS 2023 2022 2021 Operating activities : Net income $ 562,152 $ 560,742 $ 527,323 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization and accretion 883 882 1,886 Stock-based compensation expense 41,879 39,552 24,952 Increase in income tax payable, net 89,597 28,281 — Deferred tax expense 3,014 1,760 2,850 Income from equity method investments, net — (33,817) (33,169) Dividends received from equity method investment — 10,365 12,214 Excess tax benefit from stock compensation (208) (3,027) (2,475) Gain on other investments, net (2,088) (2,563) (10,223) Decrease (increase) in other assets (88,227) (32,609) 19,478 Increase (decrease) in other liabilities 1,099 3,881 2,032 Equity in undistributed income of bank subsidiary (496,236) (461,004) (424,978) Equity in undistributed income of nonbank subsidiaries (1,378) (1,187) (1,840) Net cash provided by operating activities 110,487 111,256 118,050 Investing activities : Investment in consolidated nonbanking subsidiaries (10,000) — — Repayment of investment in consolidated nonbanking subsidiaries 9,691 — — Increase in other investments (8,802) (15,776) (11,668) Net cash used in investing activities (9,111) (15,776) (11,668) Financing activities : Repayment of subordinated debt and other borrowings — — (120,000) Issuance of common stock pursuant to restricted stock unit agreement, net of shares withheld for taxes (3,725) (5,462) (3,790) Exercise of common stock options, net of shares surrendered for taxes (3,215) (4,714) (3,130) Common dividends paid (68,737) (68,194) (55,504) Preferred stock dividends paid (15,192) (15,192) (15,192) Net cash used in financing activities (90,869) (93,562) (197,616) 2023 2022 2021 Net increase (decrease) in cash 10,507 1,918 (91,234) Cash and cash equivalents, beginning of year 186,572 184,654 275,888 Cash and cash equivalents, end of year $ 197,079 $ 186,572 $ 184,654 |
Quarterly Financial Results (_2
Quarterly Financial Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Selected Consolidated Quarterly Financial Data | A summary of selected consolidated quarterly financial data for each of the years in the three-year period ended December 31, 2023 follows: (in thousands, except per share data) First Second Third Fourth 2023 Interest income $ 506,039 $ 575,239 $ 627,294 $ 644,796 Net interest income 312,231 315,393 317,242 317,252 Provision for credit losses 18,767 31,689 26,826 16,314 Net income before taxes 171,266 245,902 167,980 128,858 Net income 137,271 197,299 132,603 94,979 Net income available to common shareholders 133,473 193,501 128,805 91,181 Basic net income per common share $ 1.76 $ 2.55 $ 1.69 $ 1.20 Diluted net income per common share $ 1.76 $ 2.54 $ 1.69 $ 1.19 2022 Interest income $ 258,617 $ 292,376 $ 371,764 $ 451,178 Net interest income 239,475 264,574 305,784 319,460 Provision for credit losses 2,720 12,907 27,493 24,805 Net income before taxes 157,590 181,131 183,843 174,929 Net income 129,110 145,127 148,658 137,847 Net income available to common shareholders 125,312 141,329 144,860 134,049 Basic net income per common share $ 1.66 $ 1.87 $ 1.91 $ 1.77 Diluted net income per common share $ 1.65 $ 1.86 $ 1.91 $ 1.76 2021 Interest income $ 251,917 $ 259,236 $ 260,868 $ 259,193 Net interest income 222,870 233,225 237,543 238,763 Provision for credit losses 7,235 2,834 3,382 2,675 Net income before taxes 153,648 162,458 169,405 166,394 Net income 125,428 131,790 136,577 133,528 Net income available to common shareholders 121,630 127,992 132,779 129,730 Basic net income per common share $ 1.61 $ 1.70 $ 1.76 $ 1.72 Diluted net income per common share $ 1.61 $ 1.69 $ 1.75 $ 1.71 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Mar. 01, 2022 USD ($) | Mar. 01, 2016 USD ($) | Dec. 31, 2023 USD ($) market $ / shares shares | Sep. 30, 2023 USD ($) $ / shares | Jun. 30, 2023 USD ($) $ / shares | Mar. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares | Jun. 30, 2022 USD ($) $ / shares | Mar. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) $ / shares | Jun. 30, 2021 USD ($) $ / shares | Mar. 31, 2021 USD ($) $ / shares | Dec. 31, 2023 USD ($) market $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2018 USD ($) | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||||||||||||||||||||
Number of Markets in Which Entity Operates | market | 17 | 17 | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Gain on remeasurement of previously held noncontrolling interest | $ 0 | $ 5,500,000 | $ 0 | |||||||||||||||||
Goodwill [Roll Forward] | ||||||||||||||||||||
Balance at December 31, 2020 | $ 1,846,973,000 | 1,846,973,000 | ||||||||||||||||||
Goodwill, Acquired During Period | 0 | |||||||||||||||||||
Balance at December 31, 2021 | $ 1,846,973,000 | $ 1,846,973,000 | 1,846,973,000 | 1,846,973,000 | ||||||||||||||||
Finite-lived Intangible Assets [Roll Forward] | ||||||||||||||||||||
Balance at December 31, 2020 | 34,555,000 | 34,555,000 | ||||||||||||||||||
Acquisitions | 0 | |||||||||||||||||||
Amortization | (7,090,000) | (7,810,000) | (8,518,000) | |||||||||||||||||
Balance at December 31, 2021 | 27,465,000 | 34,555,000 | 27,465,000 | 34,555,000 | ||||||||||||||||
Balance at December 31, 2020 | 1,881,528,000 | 1,881,528,000 | ||||||||||||||||||
Acquisitions | 0 | |||||||||||||||||||
Amortization | (7,090,000) | |||||||||||||||||||
Balance at December 31, 2021 | 1,874,438,000 | 1,881,528,000 | 1,874,438,000 | 1,881,528,000 | ||||||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||||||||||
Finite-Lived Intangible Assets, Gross | 117,211,000 | 117,211,000 | 117,211,000 | 117,211,000 | ||||||||||||||||
Accumulated amortization | (89,746,000) | (82,656,000) | (89,746,000) | (82,656,000) | ||||||||||||||||
Net book value | 27,465,000 | 34,555,000 | $ 27,465,000 | 34,555,000 | ||||||||||||||||
Cash Equivalents and Cash Flows [Abstract] | ||||||||||||||||||||
Cash equivalents maturity period | 90 days | |||||||||||||||||||
Cash Payments [Abstract] | ||||||||||||||||||||
Interest | $ 1,042,542,000 | 236,463,000 | 110,119,000 | |||||||||||||||||
Income taxes paid | 99,890,000 | 128,850,000 | 108,304,000 | |||||||||||||||||
Noncash Transactions [Abstract] | ||||||||||||||||||||
Loans charged-off to the allowance for credit losses | (76,725,000) | (54,176,000) | (54,996,000) | |||||||||||||||||
Real Estate Owned, Transfer to Real Estate Owned | 2,016,000 | 230,000 | 1,098,000 | |||||||||||||||||
Loans foreclosed upon with repossessions transferred to other repossessed assets | 561,000 | 0 | 0 | |||||||||||||||||
Available-for-sale securities transferred to Held-to-Maturity | 0 | 1,059,737,000 | 0 | $ 873,600,000 | $ 179,800,000 | |||||||||||||||
Right of Use Assets Recognized | 205,776,000 | 42,413,000 | 17,642,000 | |||||||||||||||||
Loans [Abstract] | ||||||||||||||||||||
Loans and Leases Receivable, Deferred Income | $ 4,800,000 | 26,100,000 | $ 4,800,000 | 26,100,000 | ||||||||||||||||
Percentage of loan portfolio assigned specific risk rating | 79.20% | 79.20% | ||||||||||||||||||
Risk rated loans | $ 1,500,000 | $ 1,500,000 | ||||||||||||||||||
Other Assets [Abstract] | ||||||||||||||||||||
Premises and equipment, net | $ 256,877,000 | 327,885,000 | 256,877,000 | 327,885,000 | ||||||||||||||||
Amortization | $ 3,300,000 | 2,800,000 | 1,600,000 | |||||||||||||||||
Number of trusts investment | 12 | 12 | ||||||||||||||||||
Value of investments with trust companies | $ 4,000,000 | $ 4,000,000 | ||||||||||||||||||
Cash surrender value of life insurance | 995,200,000 | 881,900,000 | 995,200,000 | 881,900,000 | ||||||||||||||||
Bank-owned life insurance | 15,797,000 | 21,033,000 | 18,942,000 | |||||||||||||||||
investments are included in CRA investments | 260,500,000 | 228,400,000 | 260,500,000 | 228,400,000 | ||||||||||||||||
Amortization Method Qualified Affordable Housing Project Investments | 162,100,000 | 138,000,000 | 162,100,000 | 138,000,000 | ||||||||||||||||
Gain (loss) due to change in fair value of investments | 8,732,000 | 10,605,000 | 23,109,000 | |||||||||||||||||
Other Investments [Abstract] | ||||||||||||||||||||
Federal Reserve Bank and Federal Home Loan Bank (FHLB) stock | 117,000,000 | 80,200,000 | 117,000,000 | 80,200,000 | ||||||||||||||||
Other Investments | 157,100,000 | 131,000,000 | 157,100,000 | 131,000,000 | ||||||||||||||||
Gain (loss) due to change in fair value of investments | 8,732,000 | 10,605,000 | 23,109,000 | |||||||||||||||||
Other Real Estate Owned [Abstract] | ||||||||||||||||||||
Other real estate owned | 3,900,000 | 8,000,000 | 3,900,000 | 8,000,000 | ||||||||||||||||
Valuation allowance related to other real estate owned | $ 0 | $ 0 | 0 | 0 | ||||||||||||||||
Foreclosed real estate expense | 315,000 | 280,000 | ||||||||||||||||||
Foreclosed Real Estate Benefit | (712,000) | |||||||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||||||||
Income Tax Examination, Penalties and Interest Expense | $ 80,000 | $ 264,000 | $ 0 | |||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||
Stock options outstanding (in shares) | shares | 0 | 40,188 | 56,147 | 0 | 40,188 | 56,147 | 101,769 | |||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | shares | 631,173 | 398,461 | 458,808 | |||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 484,871 | 263,573 | 32,684 | |||||||||||||||||
Basic earnings per share calculation [Abstract] | ||||||||||||||||||||
Numerator - Net income (loss) available to common stockholders | $ 91,181,000 | $ 128,805,000 | $ 193,501,000 | $ 133,473,000 | $ 134,049,000 | $ 144,860,000 | $ 141,329,000 | $ 125,312,000 | $ 129,730,000 | $ 132,779,000 | $ 127,992,000 | $ 121,630,000 | $ 546,960,000 | $ 545,550,000 | $ 512,131,000 | |||||
Denominator - Weighted average common shares outstanding (in shares) | shares | 76,016,370 | 75,735,404 | 75,468,339 | |||||||||||||||||
Basic net income per common share (in dollars per share) | $ / shares | $ 1.20 | $ 1.69 | $ 2.55 | $ 1.76 | $ 1.77 | $ 1.91 | $ 1.87 | $ 1.66 | $ 1.72 | $ 1.76 | $ 1.70 | $ 1.61 | $ 7.20 | $ 7.20 | $ 6.79 | |||||
Diluted net income per share calculation [Abstract] | ||||||||||||||||||||
Numerator - Net income (loss) available to common stockholders | $ 91,181,000 | $ 128,805,000 | $ 193,501,000 | $ 133,473,000 | $ 134,049,000 | $ 144,860,000 | $ 141,329,000 | $ 125,312,000 | $ 129,730,000 | $ 132,779,000 | $ 127,992,000 | $ 121,630,000 | $ 546,960,000 | $ 545,550,000 | $ 512,131,000 | |||||
Denominator - Weighted average common shares outstanding (in shares) | shares | 76,016,370 | 75,735,404 | 75,468,339 | |||||||||||||||||
Dilutive shares (in shares) | shares | 631,173 | 398,461 | 458,808 | |||||||||||||||||
Weighted average diluted common shares outstanding (in shares) | shares | 76,647,543 | 76,133,865 | 75,927,147 | |||||||||||||||||
Diluted net income per common share (in dollars per share) | $ / shares | $ 1.19 | $ 1.69 | $ 2.54 | $ 1.76 | $ 1.76 | $ 1.91 | $ 1.86 | $ 1.65 | $ 1.71 | $ 1.75 | $ 1.69 | $ 1.61 | $ 7.14 | $ 7.17 | $ 6.75 | |||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||||||||||
Right of Use Assets Recognized | $ 205,776,000 | $ 42,413,000 | $ 17,642,000 | |||||||||||||||||
BOLI Restructure Receivable | $ 141,547,000 | $ 0 | $ 0 | 141,547,000 | 0 | 0 | ||||||||||||||
Alternative Investments | ||||||||||||||||||||
Other Assets [Abstract] | ||||||||||||||||||||
Gain (loss) due to change in fair value of investments | 3,100,000 | 10,600,000 | 23,100,000 | |||||||||||||||||
Other Investments [Abstract] | ||||||||||||||||||||
Gain (loss) due to change in fair value of investments | $ 3,100,000 | 10,600,000 | 23,100,000 | |||||||||||||||||
Premises and Equipment | Minimum | ||||||||||||||||||||
Premises and Equipment and Leaseholds [Abstract] | ||||||||||||||||||||
Premises and equipment, useful life | 3 years | 3 years | ||||||||||||||||||
Premises and Equipment | Maximum | ||||||||||||||||||||
Premises and Equipment and Leaseholds [Abstract] | ||||||||||||||||||||
Premises and equipment, useful life | 35 years | 35 years | ||||||||||||||||||
Computer Software, Intangible Asset | ||||||||||||||||||||
Other Assets [Abstract] | ||||||||||||||||||||
Premises and equipment, net | $ 10,800,000 | $ 6,600,000 | $ 10,800,000 | 6,600,000 | ||||||||||||||||
Computer Software, Intangible Asset | Minimum | ||||||||||||||||||||
Premises and Equipment and Leaseholds [Abstract] | ||||||||||||||||||||
Premises and equipment, useful life | 3 years | 3 years | ||||||||||||||||||
Computer Software, Intangible Asset | Maximum | ||||||||||||||||||||
Premises and Equipment and Leaseholds [Abstract] | ||||||||||||||||||||
Premises and equipment, useful life | 7 years | 7 years | ||||||||||||||||||
Bankers Healthcare Group, LLC | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 49% | 49% | ||||||||||||||||||
Cash paid to redeem common stock | $ 74,100,000 | |||||||||||||||||||
Finite-lived Intangible Assets [Roll Forward] | ||||||||||||||||||||
Amortization | $ (349,000) | (512,000) | $ (752,000) | |||||||||||||||||
JB&B Capital | JB&B Capital | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 80% | 20% | ||||||||||||||||||
Cash paid to redeem common stock | $ 32,000,000 | |||||||||||||||||||
Loans, net of allowance for loan losses | 12,900,000 | |||||||||||||||||||
Borrowings | 29,500,000 | |||||||||||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | $ 8,000,000 | |||||||||||||||||||
Gain on remeasurement of previously held noncontrolling interest | $ 5,500,000 | |||||||||||||||||||
Internal Revenue Service (IRS) | Minimum | ||||||||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||||||||
Tax year open to audit under the statute of limitation | 2020 | |||||||||||||||||||
Internal Revenue Service (IRS) | Maximum | ||||||||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||||||||
Tax year open to audit under the statute of limitation | 2023 | |||||||||||||||||||
Employee Stock Option | ||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||
Stock options outstanding (in shares) | shares | 0 | 0 |
Equity method investment Equity
Equity method investment Equity method investment - Financial Position and Results of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Assets | $ 47,959,883 | $ 41,970,021 | |
Liabilities | 41,924,095 | 36,450,629 | |
Total liabilities and shareholders' equity | 47,959,883 | 41,970,021 | |
Bankers Healthcare Group, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Assets | 4,304,835 | 4,375,643 | |
Liabilities | 3,749,821 | 3,821,725 | |
Equity interests | 555,014 | 553,918 | |
Total liabilities and shareholders' equity | 4,304,835 | 4,375,643 | |
Revenues | 1,175,756 | 1,110,230 | $ 735,506 |
Income before income taxes and equity in undistributed income of subsidiaries | $ 181,326 | $ 295,186 | $ 241,051 |
Equity method investment (Detai
Equity method investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Mar. 01, 2016 | Feb. 01, 2015 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of Equity Method Investments [Line Items] | ||||||
Core deposits and other intangible assets | $ 27,465 | $ 34,555 | ||||
Amortization of intangibles | 7,090 | 7,810 | $ 8,518 | |||
Dividends received from equity method investment | 36,694 | 63,114 | 69,996 | |||
Loans | 32,676,091 | 29,041,605 | ||||
Accounting Standards Update 2016-13 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cumulative effect of change in accounting principle | [1] | (35,002) | ||||
Cumulative effect of change in accounting principle | [1] | (35,002) | ||||
Bankers Healthcare Group, LLC | Accounting Standards Update 2016-13 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cumulative effect of change in accounting principle | 35,000 | |||||
Cumulative effect of change in accounting principle | 35,000 | |||||
Bankers Healthcare Group, LLC | Accounting Standards Update 2016-13 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 95,200 | |||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | $ 95,200 | |||||
Bankers Healthcare Group, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 49% | |||||
Payments to Acquire Businesses, Gross | $ 74,100 | |||||
Additional ownership percentage | 19% | |||||
Core deposits and other intangible assets | $ 6,000 | 6,300 | ||||
Amortization of intangibles | 349 | 512 | 752 | |||
Accretion income | 225 | 718 | 1,500 | |||
Accretable discount | 200 | 500 | ||||
Dividends received from equity method investment | 36,700 | 63,100 | 70,000 | |||
Commercial loans held for sale sold | 1,400,000 | 1,000,000 | 646,600 | |||
Payments to Acquire Loans Held-for-investment | 0 | 125,600 | $ 276,700 | |||
Loans | 263,000 | $ 350,600 | ||||
Bankers Healthcare Group, LLC | Loan #1 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 150,000 | |||||
Proceeds from Lines of Credit | $ 69,400 | |||||
Line of Credit Facility, Interest Rate Description | SOFR plus 200 basis points | |||||
Bankers Healthcare Group, LLC | Loan #2 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Line of Credit Facility, Interest Rate Description | SOFR plus 200 basis points | |||||
Bankers Healthcare Group, LLC | Bankers Healthcare Group, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Common stock issued (in shares) | 860,470 | |||||
Common stock issued in the purchase agreement (value) | $ 39,900 | |||||
Bankers Healthcare Group, LLC | Pinnacle Financial | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Additional ownership percentage | 8.55% | |||||
Bankers Healthcare Group, LLC | Pinnacle Bank | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 30% | |||||
Payments to Acquire Businesses, Gross | $ 75,000 | |||||
Additional ownership percentage | 10.45% | |||||
[1]Represents the impact of Banker's Healthcare Group's adoption of ASU 2016-13. See Note 2. Equity Method Investment. |
Restricted Cash Balances (Detai
Restricted Cash Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | ||
Average Daily Cash Balance with Federal Reserve Bank | $ 2,600,000 | $ 1,800,000 |
Restricted cash | $ 86,873 | $ 31,447 |
Securities Securities - Availab
Securities Securities - Available for sale (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | $ 4,548,772 | $ 3,871,491 |
Gross Unrealized Gain | 26,982 | 12,805 |
Gross Unrealized Loss | 258,224 | 325,426 |
Securities available-for-sale, at fair value | 4,317,530 | 3,558,870 |
Available-for-sale, Amortized Cost | ||
Due in one year of less | 16,744 | |
Due in one year to five years | 204,619 | |
Due in five to ten years | 549,251 | |
Due after ten years | 2,504,618 | |
Mortgage-backed securities | 1,071,963 | |
Asset-backed securities | 201,577 | |
Amortized Cost | 4,548,772 | 3,871,491 |
Available-for-sale, Fair Value | ||
Due in one year or less | 18,747 | |
Due in one year to five years | 202,103 | |
Due in five years to ten years | 504,648 | |
Due after ten years | 2,453,007 | |
Mortgage-backed securities | 947,390 | |
Asset-backed securities | 191,635 | |
Securities available-for-sale, at fair value | 4,317,530 | 3,558,870 |
US Treasury Securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 907,990 | 196,151 |
Gross Unrealized Gain | 2 | 0 |
Gross Unrealized Loss | 14,580 | 1,967 |
Securities available-for-sale, at fair value | 893,412 | 194,184 |
Available-for-sale, Amortized Cost | ||
Amortized Cost | 907,990 | 196,151 |
Available-for-sale, Fair Value | ||
Securities available-for-sale, at fair value | 893,412 | 194,184 |
U.S. Government Agency Securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 284,607 | 432,475 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 21,877 | 36,318 |
Securities available-for-sale, at fair value | 262,730 | 396,157 |
Available-for-sale, Amortized Cost | ||
Amortized Cost | 284,607 | 432,475 |
Available-for-sale, Fair Value | ||
Securities available-for-sale, at fair value | 262,730 | 396,157 |
Mortgage-backed Agency Securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 1,071,963 | 1,114,948 |
Gross Unrealized Gain | 444 | 211 |
Gross Unrealized Loss | 125,017 | 143,583 |
Securities available-for-sale, at fair value | 947,390 | 971,576 |
Available-for-sale, Amortized Cost | ||
Amortized Cost | 1,071,963 | 1,114,948 |
Available-for-sale, Fair Value | ||
Securities available-for-sale, at fair value | 947,390 | 971,576 |
State and Municipal Securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 1,604,874 | 1,478,310 |
Gross Unrealized Gain | 26,129 | 12,553 |
Gross Unrealized Loss | 45,108 | 78,557 |
Securities available-for-sale, at fair value | 1,585,895 | 1,412,306 |
Available-for-sale, Amortized Cost | ||
Amortized Cost | 1,604,874 | 1,478,310 |
Available-for-sale, Fair Value | ||
Securities available-for-sale, at fair value | 1,585,895 | 1,412,306 |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 201,577 | 134,386 |
Gross Unrealized Gain | 338 | 0 |
Gross Unrealized Loss | 10,280 | 16,983 |
Securities available-for-sale, at fair value | 191,635 | 117,403 |
Available-for-sale, Amortized Cost | ||
Amortized Cost | 201,577 | 134,386 |
Available-for-sale, Fair Value | ||
Securities available-for-sale, at fair value | 191,635 | 117,403 |
Corporate Notes | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 477,761 | 515,221 |
Gross Unrealized Gain | 69 | 41 |
Gross Unrealized Loss | 41,362 | 48,018 |
Securities available-for-sale, at fair value | 436,468 | 467,244 |
Available-for-sale, Amortized Cost | ||
Amortized Cost | 477,761 | 515,221 |
Available-for-sale, Fair Value | ||
Securities available-for-sale, at fair value | $ 436,468 | $ 467,244 |
Securities Securities - Amortiz
Securities Securities - Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | $ 3,008,064 | $ 3,080,658 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 6,716 | 2,268 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 239,596 | 337,980 |
Fair Value | 2,775,184 | 2,744,946 |
Allowance for credit losses - securities held-to-maturity | (1,707) | (1,608) |
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss | 3,006,357 | |
Securities held-to-maturity, net of allowance for credit losses | 3,006,357 | 3,079,050 |
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Net [Abstract] | ||
Due in one year or less | 44,911 | |
Due in one year to five years | 406,769 | |
Due in five to ten years | 100,801 | |
Due after ten years | 1,875,065 | |
Mortgage-backed securities | 382,100 | |
Asset-backed securities | 198,418 | |
Amortized cost | 3,008,064 | 3,080,658 |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | ||
Due in one year or less | 43,530 | |
Due in one year to five years | 383,312 | |
Due in five to ten years | 94,025 | |
Due after ten years | 1,722,290 | |
Mortgage-backed securities | 347,837 | |
Asset-backed securities | 184,190 | |
Fair Value | 2,775,184 | 2,744,946 |
Amortized Cost | 4,548,772 | 3,871,491 |
Gross Unrealized Gain | 26,982 | 12,805 |
Gross Unrealized Loss | 258,224 | 325,426 |
Securities available-for-sale, at fair value | 4,317,530 | 3,558,870 |
US Treasury Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 90,309 | 92,738 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 3,840 | 6,472 |
Fair Value | 86,469 | 86,266 |
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Net [Abstract] | ||
Amortized cost | 90,309 | 92,738 |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | ||
Fair Value | 86,469 | 86,266 |
Amortized Cost | 907,990 | 196,151 |
Gross Unrealized Gain | 2 | 0 |
Gross Unrealized Loss | 14,580 | 1,967 |
Securities available-for-sale, at fair value | 893,412 | 194,184 |
U.S. Government Agency Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 364,769 | 374,255 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 19,187 | 27,860 |
Fair Value | 345,582 | 346,395 |
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Net [Abstract] | ||
Amortized cost | 364,769 | 374,255 |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | ||
Fair Value | 345,582 | 346,395 |
Amortized Cost | 284,607 | 432,475 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 21,877 | 36,318 |
Securities available-for-sale, at fair value | 262,730 | 396,157 |
Mortgage-backed Agency Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 382,100 | 413,119 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 637 | 52 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 34,900 | 41,593 |
Fair Value | 347,837 | 371,578 |
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Net [Abstract] | ||
Amortized cost | 382,100 | 413,119 |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | ||
Fair Value | 347,837 | 371,578 |
Amortized Cost | 1,071,963 | 1,114,948 |
Gross Unrealized Gain | 444 | 211 |
Gross Unrealized Loss | 125,017 | 143,583 |
Securities available-for-sale, at fair value | 947,390 | 971,576 |
State and Municipal Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 1,886,459 | 1,927,778 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 6,079 | 2,216 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 159,027 | 233,564 |
Fair Value | 1,733,511 | 1,696,430 |
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Net [Abstract] | ||
Amortized cost | 1,886,459 | 1,927,778 |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | ||
Fair Value | 1,733,511 | 1,696,430 |
Amortized Cost | 1,604,874 | 1,478,310 |
Gross Unrealized Gain | 26,129 | 12,553 |
Gross Unrealized Loss | 45,108 | 78,557 |
Securities available-for-sale, at fair value | 1,585,895 | 1,412,306 |
Asset-backed Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 198,418 | 184,241 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 14,228 | 18,573 |
Fair Value | 184,190 | 165,668 |
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Net [Abstract] | ||
Amortized cost | 198,418 | 184,241 |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | ||
Fair Value | 184,190 | 165,668 |
Amortized Cost | 201,577 | 134,386 |
Gross Unrealized Gain | 338 | 0 |
Gross Unrealized Loss | 10,280 | 16,983 |
Securities available-for-sale, at fair value | 191,635 | 117,403 |
Corporate Debt Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 86,009 | 88,527 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 8,414 | 9,918 |
Fair Value | 77,595 | 78,609 |
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Net [Abstract] | ||
Amortized cost | 86,009 | 88,527 |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | ||
Fair Value | 77,595 | 78,609 |
Amortized Cost | 477,761 | 515,221 |
Gross Unrealized Gain | 69 | 41 |
Gross Unrealized Loss | 41,362 | 48,018 |
Securities available-for-sale, at fair value | $ 436,468 | $ 467,244 |
Securities Securities - Unreali
Securities Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investment securities, continuous unrealized loss position [Abstract] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 1,021,511 | $ 1,456,921 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 14,349 | 77,421 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 2,243,962 | 1,550,911 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 243,875 | 248,005 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 3,265,473 | 3,007,832 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 258,224 | 325,426 |
US Treasury Securities | ||
Investment securities, continuous unrealized loss position [Abstract] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 693,621 | 192,188 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 11,651 | 1,963 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 192,500 | 1,997 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 2,929 | 4 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 886,121 | 194,185 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 14,580 | 1,967 |
U.S. Government Agency Securities | ||
Investment securities, continuous unrealized loss position [Abstract] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 14,989 | 46,062 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 11 | 2,224 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 247,648 | 350,094 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 21,866 | 34,094 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 262,637 | 396,156 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 21,877 | 36,318 |
Mortgage-backed Agency Securities | ||
Investment securities, continuous unrealized loss position [Abstract] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 72,907 | 390,014 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1,518 | 34,106 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 828,251 | 570,601 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 123,499 | 109,477 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 901,158 | 960,615 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 125,017 | 143,583 |
State and Municipal Securities | ||
Investment securities, continuous unrealized loss position [Abstract] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 185,108 | 568,691 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 908 | 18,863 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 449,212 | 304,451 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 44,200 | 59,694 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 634,320 | 873,142 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 45,108 | 78,557 |
Asset-backed Securities | ||
Investment securities, continuous unrealized loss position [Abstract] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 42,207 | 513 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 254 | 5 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 122,469 | 116,442 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 10,026 | 16,978 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 164,676 | 116,955 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 10,280 | 16,983 |
Corporate Notes | ||
Investment securities, continuous unrealized loss position [Abstract] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 12,679 | 259,453 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 7 | 20,260 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 403,882 | 207,326 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 41,355 | 27,758 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 416,561 | 466,779 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 41,362 | $ 48,018 |
Securities (Details)
Securities (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Available-for-sale securities transferred to Held-to-Maturity | $ 0 | $ 1,059,737,000 | $ 0 | $ 873,600,000 | $ 179,800,000 |
Unrealized after tax gain (loss) on available-for-sale securities transferred to the held-to-maturity portfolio | (1,500,000) | $ 69,000,000 | $ (2,200,000) | ||
Allowance for credit losses - securities held-to-maturity | (1,707,000) | (1,608,000) | |||
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 209,500,000 | ||||
Proceeds from Sale of Debt Securities, Available-for-sale | 312,574,000 | 29,501,000 | 37,457,000 | ||
Debt Securities, Available-for-sale, Realized Gain | 321,000 | 292,000 | 769,000 | ||
Debt Securities, Available-for-sale, Realized Loss | 20,000,000 | 136,000 | $ 10,000 | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 258,224,000 | 325,426,000 | |||
Debt Securities, Available-for-sale, Unrealized Loss Position | 3,265,473,000 | $ 3,007,832,000 | |||
Securities pledged as collateral | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Financial Instruments, Owned, at Fair Value | 2,100,000,000 | ||||
Securities pledged as collateral | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement | $ 209,500,000 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual loans | $ 82,288,000 | $ 38,116,000 | |
Financing Receivable, Nonaccrual, No Allowance | 41,310,000 | 9,043,000 | |
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 6,004,000 | 4,406,000 | |
Percentage of credit exposure to risk based capital | 25% | ||
Loans and other extensions of credit granted to directors, executive officers, and their related entities | $ 37,700,000 | 20,900,000 | |
Amount drawn from loans and other extensions of credit granted | 34,700,000 | 16,000,000 | |
Commercial loans held-for-sale | 9,280,000 | 21,093,000 | |
Mortgage loans held-for-sale | 20,200,000 | 12,900,000 | |
Gains on mortgage loans sold, net | 6,511,000 | 7,268,000 | $ 32,424,000 |
Loans | 32,676,091,000 | 29,041,605,000 | |
Impaired Financing Receivable, Interest Income, Cash Basis Method | 0 | 0 | 0 |
Interest Lost on impaired loans | 4,500,000 | 1,600,000 | 1,700,000 |
Currently performing impaired loans | 7,900,000 | 6,400,000 | |
Mortgage loans held-for-sale sold | 653,900,000 | 826,200,000 | $ 1,600,000,000 |
Commercial Real Estate Owner Occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual loans | 3,452,000 | 1,882,000 | |
Financing Receivable, Nonaccrual, No Allowance | 122,000 | 0 | |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 | |
Loans | 4,044,896,000 | 3,587,257,000 | |
Commercial real estate non owner occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual loans | 41,343,000 | 2,244,000 | |
Financing Receivable, Nonaccrual, No Allowance | 40,669,000 | 1,040,000 | |
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 0 | $ 0 | |
Percentage of credit exposure to risk based capital | 259% | 249.60% | |
Loans | $ 7,535,494,000 | $ 6,542,619,000 | |
Consumer Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual loans | 17,879,000 | 17,330,000 | |
Financing Receivable, Nonaccrual, No Allowance | 0 | 0 | |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 781,000 | 0 | |
Construction and Land Development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual loans | 608,000 | 231,000 | |
Financing Receivable, Nonaccrual, No Allowance | 0 | 0 | |
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 0 | $ 0 | |
Percentage of credit exposure to risk based capital | 84.20% | 85.90% | |
Loans | $ 4,041,081,000 | $ 3,679,498,000 | |
Commercial and Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual loans | 18,931,000 | 16,345,000 | |
Financing Receivable, Nonaccrual, No Allowance | 519,000 | 8,003,000 | |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 3,802,000 | 3,663,000 | |
Consumer and Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual loans | 75,000 | 84,000 | |
Financing Receivable, Nonaccrual, No Allowance | 0 | 0 | |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 1,421,000 | 743,000 | |
Loans | $ 536,398,000 | $ 555,823,000 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses Loan Classification by Risk Rating Category (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Receivables [Abstract] | ||||
Percentage of loan portfolio as commercial loan | 79.20% | |||
Risk rated loans | $ 1,500 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 7,801,081 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 8,956,751 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 5,834,396 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 2,057,226 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1,215,843 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,222,983 | |||
Financing Receivable, Revolving | 5,587,811 | |||
Loans | 32,676,091 | $ 29,041,605 | ||
Potential problem loans | 127,400 | 53,800 | ||
Charged-off loans | (76,725) | (54,176) | $ (54,996) | |
2023 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (3,579) | |||
2022 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (24,968) | |||
2021 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (20,325) | |||
2020 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (6,123) | |||
2019 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (435) | |||
Prior | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (1,040) | |||
Revolving Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (20,255) | |||
Pass | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 7,731,335 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 8,844,015 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 5,742,666 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 2,038,952 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1,202,431 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,196,095 | |||
Financing Receivable, Revolving | 5,479,475 | |||
Loans | 32,234,969 | |||
Special Mention | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 15,448 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 90,359 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 17,757 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 13,996 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 5,666 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 11,883 | |||
Financing Receivable, Revolving | 45,025 | |||
Loans | 200,134 | |||
Substandard Accrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | [1] | 41,393 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1] | 14,543 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 28,573 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 1,290 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 2,122 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 9,793 | ||
Financing Receivable, Revolving | [1] | 60,986 | ||
Loans | [1] | 158,700 | ||
Substandard Nonaccrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 12,905 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 7,834 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 45,400 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 2,987 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 5,624 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 5,212 | |||
Financing Receivable, Revolving | 2,325 | |||
Loans | 82,287 | |||
Doubtful Nonaccrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |||
Financing Receivable, Revolving | 0 | |||
Loans | 1 | |||
Commercial Real Estate Owner Occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 794,738 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,170,695 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 880,637 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 505,710 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 273,469 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 362,967 | |||
Financing Receivable, Revolving | 56,680 | |||
Loans | 4,044,896 | 3,587,257 | ||
Charged-off loans | 0 | (1,413) | (1,420) | |
Commercial Real Estate Owner Occupied | 2023 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Commercial Real Estate Owner Occupied | 2022 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Commercial Real Estate Owner Occupied | 2021 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Commercial Real Estate Owner Occupied | 2020 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Commercial Real Estate Owner Occupied | 2019 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Commercial Real Estate Owner Occupied | Prior | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Commercial Real Estate Owner Occupied | Revolving Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Commercial Real Estate Owner Occupied | Pass | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 785,834 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,123,425 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 871,389 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 502,260 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 267,595 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 357,339 | |||
Financing Receivable, Revolving | 56,680 | |||
Loans | 3,964,522 | |||
Commercial Real Estate Owner Occupied | Special Mention | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,595 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 37,324 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 5,300 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 2,252 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 5,306 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 4,701 | |||
Financing Receivable, Revolving | 0 | |||
Loans | 56,478 | |||
Commercial Real Estate Owner Occupied | Substandard Accrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | [1] | 5,528 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1] | 9,331 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 3,262 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 1,145 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 568 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 610 | ||
Financing Receivable, Revolving | [1] | 0 | ||
Loans | [1] | 20,444 | ||
Commercial Real Estate Owner Occupied | Substandard Nonaccrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,781 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 615 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 686 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 53 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 317 | |||
Financing Receivable, Revolving | 0 | |||
Loans | 3,452 | |||
Commercial Real Estate Owner Occupied | Doubtful Nonaccrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |||
Financing Receivable, Revolving | 0 | |||
Loans | 0 | |||
Commercial real estate non owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,329,832 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2,715,626 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,777,455 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 720,724 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 507,178 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 376,317 | |||
Financing Receivable, Revolving | 108,362 | |||
Loans | 7,535,494 | 6,542,619 | ||
Charged-off loans | 0 | (185) | (786) | |
Commercial real estate non owner occupied | 2023 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Commercial real estate non owner occupied | 2022 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Commercial real estate non owner occupied | 2021 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Commercial real estate non owner occupied | 2020 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Commercial real estate non owner occupied | 2019 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Commercial real estate non owner occupied | Prior | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Commercial real estate non owner occupied | Revolving Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Commercial real estate non owner occupied | Pass | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,304,109 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2,682,275 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,737,275 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 713,979 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 505,767 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 370,420 | |||
Financing Receivable, Revolving | 107,841 | |||
Loans | 7,421,666 | |||
Commercial real estate non owner occupied | Special Mention | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 30,229 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 6,745 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 216 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 5,335 | |||
Financing Receivable, Revolving | 0 | |||
Loans | 42,525 | |||
Commercial real estate non owner occupied | Substandard Accrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | [1] | 25,723 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1] | 2,969 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 1,195 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 73 | ||
Financing Receivable, Revolving | [1] | 0 | ||
Loans | [1] | 29,960 | ||
Commercial real estate non owner occupied | Substandard Nonaccrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 153 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 40,180 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 489 | |||
Financing Receivable, Revolving | 521 | |||
Loans | 41,343 | |||
Commercial real estate non owner occupied | Doubtful Nonaccrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |||
Financing Receivable, Revolving | 0 | |||
Loans | 0 | |||
Consumer Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 573,808 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 978,271 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,059,671 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 450,945 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 213,055 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 322,176 | |||
Financing Receivable, Revolving | 1,253,605 | |||
Loans | 4,851,531 | 4,435,046 | ||
Charged-off loans | (883) | (651) | (632) | |
Consumer Real Estate | Pass | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 573,120 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 976,006 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,056,720 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 448,420 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 207,790 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 318,505 | |||
Financing Receivable, Revolving | 1,253,091 | |||
Loans | 4,833,652 | |||
Consumer Real Estate | Special Mention | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |||
Financing Receivable, Revolving | 0 | |||
Loans | 0 | |||
Consumer Real Estate | Substandard Accrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Revolving | [1] | 0 | ||
Loans | [1] | 0 | ||
Consumer Real Estate | Substandard Nonaccrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 688 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2,265 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 2,951 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 2,525 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 5,265 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 3,671 | |||
Financing Receivable, Revolving | 514 | |||
Loans | 17,879 | |||
Consumer Real Estate | Doubtful Nonaccrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |||
Financing Receivable, Revolving | 0 | |||
Loans | 0 | |||
Construction and Land Development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,155,865 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,930,670 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 884,060 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 16,569 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 5,580 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 6,451 | |||
Financing Receivable, Revolving | 41,886 | |||
Loans | 4,041,081 | 3,679,498 | ||
Charged-off loans | (3) | (150) | (367) | |
Construction and Land Development | 2023 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Construction and Land Development | 2022 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Construction and Land Development | 2021 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Construction and Land Development | 2020 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Construction and Land Development | 2019 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Construction and Land Development | Prior | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (3) | |||
Construction and Land Development | Revolving Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Construction and Land Development | Pass | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,153,137 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,930,062 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 884,060 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 12,102 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 5,580 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 6,369 | |||
Financing Receivable, Revolving | 41,886 | |||
Loans | 4,033,196 | |||
Construction and Land Development | Special Mention | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 2,728 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 4,467 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |||
Financing Receivable, Revolving | 0 | |||
Loans | 7,195 | |||
Construction and Land Development | Substandard Accrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 82 | ||
Financing Receivable, Revolving | [1] | 0 | ||
Loans | [1] | 82 | ||
Construction and Land Development | Substandard Nonaccrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 608 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |||
Financing Receivable, Revolving | 0 | |||
Loans | 608 | |||
Construction and Land Development | Doubtful Nonaccrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |||
Financing Receivable, Revolving | 0 | |||
Loans | 0 | |||
Commercial and Industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 3,810,029 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2,132,715 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,166,447 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 326,263 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 216,020 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 154,416 | |||
Financing Receivable, Revolving | 3,860,801 | |||
Loans | 11,666,691 | 10,241,362 | ||
Charged-off loans | (60,542) | (39,020) | (46,213) | |
Commercial and Industrial | 2023 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (3,428) | |||
Commercial and Industrial | 2022 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (24,114) | |||
Commercial and Industrial | 2021 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (13,857) | |||
Commercial and Industrial | 2020 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (3,309) | |||
Commercial and Industrial | 2019 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (111) | |||
Commercial and Industrial | Prior | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (455) | |||
Commercial and Industrial | Revolving Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (15,268) | |||
Commercial and Industrial | Pass | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 3,778,326 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2,103,473 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,127,096 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 325,176 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 215,158 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 142,806 | |||
Financing Receivable, Revolving | 3,753,575 | |||
Loans | 11,445,610 | |||
Commercial and Industrial | Special Mention | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 11,125 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 22,806 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 12,457 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 532 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 144 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,847 | |||
Financing Receivable, Revolving | 45,025 | |||
Loans | 93,936 | |||
Commercial and Industrial | Substandard Accrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | [1] | 10,142 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1] | 2,243 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 25,311 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 145 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 359 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 9,028 | ||
Financing Receivable, Revolving | [1] | 60,986 | ||
Loans | [1] | 108,214 | ||
Commercial and Industrial | Substandard Nonaccrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 10,436 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 4,193 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,583 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 409 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 359 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 735 | |||
Financing Receivable, Revolving | 1,215 | |||
Loans | 18,930 | |||
Commercial and Industrial | Doubtful Nonaccrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |||
Financing Receivable, Revolving | 0 | |||
Loans | 1 | |||
Consumer and Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 136,809 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 28,774 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 66,126 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 37,015 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 541 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 656 | |||
Financing Receivable, Revolving | 266,477 | |||
Loans | 536,398 | 555,823 | ||
Charged-off loans | (15,297) | $ (12,757) | $ (5,578) | |
Consumer and Other | 2023 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (151) | |||
Consumer and Other | 2022 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (629) | |||
Consumer and Other | 2021 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (6,377) | |||
Consumer and Other | 2020 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (2,808) | |||
Consumer and Other | 2019 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (235) | |||
Consumer and Other | Prior | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (110) | |||
Consumer and Other | Revolving Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (4,987) | |||
Consumer and Other | Pass | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 136,809 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 28,774 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 66,126 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 37,015 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 541 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 656 | |||
Financing Receivable, Revolving | 266,402 | |||
Loans | 536,323 | |||
Consumer and Other | Special Mention | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |||
Financing Receivable, Revolving | 0 | |||
Loans | 0 | |||
Consumer and Other | Substandard Accrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 0 | ||
Financing Receivable, Revolving | [1] | 0 | ||
Loans | [1] | 0 | ||
Consumer and Other | Substandard Nonaccrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |||
Financing Receivable, Revolving | 75 | |||
Loans | 75 | |||
Consumer and Other | Doubtful Nonaccrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |||
Financing Receivable, Revolving | 0 | |||
Loans | 0 | |||
Consumer Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (883) | |||
Consumer Real Estate | 2023 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | 0 | |||
Consumer Real Estate | 2022 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (225) | |||
Consumer Real Estate | 2021 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (91) | |||
Consumer Real Estate | 2020 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (6) | |||
Consumer Real Estate | 2019 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (89) | |||
Consumer Real Estate | Prior | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | (472) | |||
Consumer Real Estate | Revolving Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charged-off loans | $ 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 loan modifications made to borrowers experiencing financial difficulty. Potential problem loans, which are not included in nonaccrual loans, amounted to approximately $127.4 million at December 31, 2023, compared to $53.8 million at December 31, 2022. |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses, Financing Receivables Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 32,676,091 | $ 29,041,605 |
Financial Asset, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 83,937 | 35,840 |
Financial Asset, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 32,465 | 16,249 |
Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 33,369 | 22,218 |
Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 149,771 | 74,307 |
Financial Asset, Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 32,526,320 | 28,967,298 |
Commercial Real Estate Owner Occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 4,044,896 | 3,587,257 |
Commercial Real Estate Owner Occupied | Financial Asset, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,671 | 2,112 |
Commercial Real Estate Owner Occupied | Financial Asset, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 507 | 615 |
Commercial Real Estate Owner Occupied | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 3,398 | 1,139 |
Commercial Real Estate Owner Occupied | Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 5,576 | 3,866 |
Commercial Real Estate Owner Occupied | Financial Asset, Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 4,039,320 | 3,583,391 |
Commercial real estate non owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 7,535,494 | 6,542,619 |
Commercial real estate non owner occupied | Financial Asset, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 40,577 | 359 |
Commercial real estate non owner occupied | Financial Asset, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 489 | 48 |
Commercial real estate non owner occupied | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 153 | 1,681 |
Commercial real estate non owner occupied | Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 41,219 | 2,088 |
Commercial real estate non owner occupied | Financial Asset, Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 7,494,275 | 6,540,531 |
Consumer Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 4,851,531 | 4,435,046 |
Consumer Real Estate | Financial Asset, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 21,585 | 13,635 |
Consumer Real Estate | Financial Asset, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,352 | 83 |
Consumer Real Estate | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 10,824 | 9,094 |
Consumer Real Estate | Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 33,761 | 22,812 |
Consumer Real Estate | Financial Asset, Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 4,817,770 | 4,412,234 |
Construction and Land Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 4,041,081 | 3,679,498 |
Construction and Land Development | Financial Asset, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 621 | 221 |
Construction and Land Development | Financial Asset, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 28 | 102 |
Construction and Land Development | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 608 | 130 |
Construction and Land Development | Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,257 | 453 |
Construction and Land Development | Financial Asset, Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 4,039,824 | 3,679,045 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 11,666,691 | 10,241,362 |
Commercial and Industrial | Financial Asset, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 14,197 | 15,457 |
Commercial and Industrial | Financial Asset, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 28,221 | 13,713 |
Commercial and Industrial | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 16,890 | 9,428 |
Commercial and Industrial | Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 59,308 | 38,598 |
Commercial and Industrial | Financial Asset, Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 11,607,383 | 10,202,764 |
Consumer and Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 536,398 | 555,823 |
Consumer and Other | Financial Asset, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 5,286 | 4,056 |
Consumer and Other | Financial Asset, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,868 | 1,688 |
Consumer and Other | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,496 | 746 |
Consumer and Other | Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 8,650 | 6,490 |
Consumer and Other | Financial Asset, Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 527,748 | $ 549,333 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses, Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses | $ 353,055 | $ 300,665 | $ 263,233 | $ 285,050 |
Charged-off loans | (76,725) | (54,176) | (54,996) | |
Recovery of previously charged-off loans | 28,119 | 27,629 | 16,273 | |
Provision for credit losses | 100,996 | 63,979 | 16,906 | |
Commercial Real Estate Owner Occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses | 28,690 | 26,617 | 19,618 | 23,298 |
Charged-off loans | 0 | (1,413) | (1,420) | |
Recovery of previously charged-off loans | 76 | 2,082 | 1,609 | |
Provision for credit losses | 1,997 | 6,330 | (3,869) | |
Commercial real estate non owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses | 57,687 | 40,479 | 58,504 | 79,132 |
Charged-off loans | 0 | (185) | (786) | |
Recovery of previously charged-off loans | 1,632 | 187 | 969 | |
Provision for credit losses | 15,576 | (18,027) | (20,811) | |
Consumer Real Estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses | 71,354 | 36,536 | 32,104 | 33,304 |
Charged-off loans | (883) | (651) | (632) | |
Recovery of previously charged-off loans | 2,114 | 1,512 | 2,288 | |
Provision for credit losses | 33,587 | 3,571 | (2,856) | |
Construction and Land Development | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses | 39,142 | 36,114 | 29,429 | 42,408 |
Charged-off loans | (3) | (150) | (367) | |
Recovery of previously charged-off loans | 338 | 471 | 372 | |
Provision for credit losses | 2,693 | 6,364 | (12,984) | |
Commercial and Industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses | 148,212 | 144,353 | 112,340 | 98,423 |
Charged-off loans | (60,542) | (39,020) | (46,213) | |
Recovery of previously charged-off loans | 15,556 | 15,687 | 7,485 | |
Provision for credit losses | 48,845 | 55,346 | 52,645 | |
Consumer and Other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses | 7,970 | 16,566 | 11,238 | $ 8,485 |
Charged-off loans | (15,297) | (12,757) | (5,578) | |
Recovery of previously charged-off loans | 8,403 | 7,690 | 3,550 | |
Provision for credit losses | $ (1,702) | $ 10,395 | $ 4,781 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses, Impaired Financing Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | $ 145,095 | $ 50,693 |
Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 112,918 | 38,364 |
Business Assets | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 31,625 | 12,327 |
Other | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 552 | 2 |
Commercial Real Estate Owner Occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 22,284 | 10,804 |
Commercial Real Estate Owner Occupied | Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 22,284 | 10,804 |
Commercial Real Estate Owner Occupied | Business Assets | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 0 |
Commercial Real Estate Owner Occupied | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 0 |
Commercial real estate non owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 69,577 | 4,795 |
Commercial real estate non owner occupied | Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 69,577 | 4,795 |
Commercial real estate non owner occupied | Business Assets | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 0 |
Commercial real estate non owner occupied | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 0 |
Consumer Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 20,389 | 22,466 |
Consumer Real Estate | Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 20,389 | 22,466 |
Consumer Real Estate | Business Assets | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 0 |
Consumer Real Estate | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 0 |
Construction and Land Development | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 668 | 299 |
Construction and Land Development | Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 668 | 299 |
Construction and Land Development | Business Assets | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 0 |
Construction and Land Development | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 0 |
Commercial and Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 32,177 | 12,327 |
Commercial and Industrial | Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 0 |
Commercial and Industrial | Business Assets | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 31,625 | 12,327 |
Commercial and Industrial | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 552 | 0 |
Consumer and Other | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 2 |
Consumer and Other | Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 0 |
Consumer and Other | Business Assets | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | 0 | 0 |
Consumer and Other | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Individually Evaluated for Impairment | $ 0 | $ 2 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses, Loan Modification (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Financing Receivable, Modifications [Line Items] | |
Post Modification Outstanding Recorded Investment net of related allowance | $ 34,477 |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 3,200 |
Financing Receivable, Modification, Past Due | 3,200 |
Financing Receivable, Modified, Writeoff | $ 357 |
Payment Deferral | |
Financing Receivable, Modifications [Line Items] | |
Post Modification Outstanding Recorded Investment net of related allowance | 12,244 |
Extended Maturity | |
Financing Receivable, Modifications [Line Items] | |
Post Modification Outstanding Recorded Investment net of related allowance | 8,754 |
Combination - Payment Deferral, Extended Maturity, and Contractual Interest Rate Reduction | |
Financing Receivable, Modifications [Line Items] | |
Post Modification Outstanding Recorded Investment net of related allowance | 13,479 |
Commercial Real Estate Owner Occupied | |
Financing Receivable, Modifications [Line Items] | |
Post Modification Outstanding Recorded Investment net of related allowance | $ 5,528 |
Commercial Real Estate Owner Occupied | Payment Deferral | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Commercial Real Estate Owner Occupied | Extended Maturity | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0.14% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 5,528 |
Financing Receivable, Modified, Weighted Average Term Increase from Modification | 5 months 15 days |
Commercial Real Estate Owner Occupied | Combination - Payment Deferral, Extended Maturity, and Contractual Interest Rate Reduction | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Commercial real estate non owner occupied | |
Financing Receivable, Modifications [Line Items] | |
Post Modification Outstanding Recorded Investment net of related allowance | $ 25,723 |
Commercial real estate non owner occupied | Payment Deferral | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0.16% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 12,244 |
Commercial real estate non owner occupied | Extended Maturity | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Commercial real estate non owner occupied | Combination - Payment Deferral, Extended Maturity, and Contractual Interest Rate Reduction | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0.18% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 13,479 |
Financing Receivable, Modified, Weighted Average Interest Rate Decrease from Modification | 55% |
Financing Receivable, Modified, Weighted Average Term Increase from Modification | 2 years |
Consumer Real Estate | |
Financing Receivable, Modifications [Line Items] | |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Consumer Real Estate | Payment Deferral | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Consumer Real Estate | Extended Maturity | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Consumer Real Estate | Combination - Payment Deferral, Extended Maturity, and Contractual Interest Rate Reduction | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Construction and Land Development | |
Financing Receivable, Modifications [Line Items] | |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Construction and Land Development | Payment Deferral | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Construction and Land Development | Extended Maturity | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Construction and Land Development | Combination - Payment Deferral, Extended Maturity, and Contractual Interest Rate Reduction | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Commercial and Industrial | |
Financing Receivable, Modifications [Line Items] | |
Post Modification Outstanding Recorded Investment net of related allowance | $ 3,226 |
Commercial and Industrial | Payment Deferral | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Commercial and Industrial | Extended Maturity | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0.03% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 3,226 |
Financing Receivable, Modified, Weighted Average Term Increase from Modification | 3 months |
Commercial and Industrial | Combination - Payment Deferral, Extended Maturity, and Contractual Interest Rate Reduction | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Consumer and Other | |
Financing Receivable, Modifications [Line Items] | |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Consumer and Other | Payment Deferral | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Consumer and Other | Extended Maturity | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Consumer and Other | Combination - Payment Deferral, Extended Maturity, and Contractual Interest Rate Reduction | |
Financing Receivable, Modifications [Line Items] | |
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage | 0% |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Industry Classification System (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Principal Balances | $ 8,067,295 | |
Unfunded Commitments | 3,644,515 | |
Total exposure | 11,711,810 | $ 13,673,956 |
Lessors of Nonresidential Buildings | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Principal Balances | 4,674,176 | |
Unfunded Commitments | 1,242,159 | |
Total exposure | 5,916,335 | 7,058,045 |
Lessors of Residential Buildings and Dwellings [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Principal Balances | 2,028,622 | |
Unfunded Commitments | 1,150,419 | |
Total exposure | 3,179,041 | 3,725,186 |
New housing for-sale builders | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Principal Balances | 577,090 | |
Unfunded Commitments | 819,563 | |
Total exposure | 1,396,653 | 1,763,089 |
Hotels and motels | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Principal Balances | 787,407 | |
Unfunded Commitments | 432,374 | |
Total exposure | $ 1,219,781 | $ 1,127,636 |
Premises and Equipment and Le_3
Premises and Equipment and Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 398,972 | $ 485,363 | |
Accumulated depreciation and amortization | (142,095) | (157,478) | |
Property, Plant and Equipment, Net | 256,877 | 327,885 | |
Depreciation and amortization expense | $ 30,200 | $ 25,900 | $ 22,200 |
Right of Use Assets [Abstract] | |||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | |
Lease, Cost [Abstract] | |||
Operating Lease, Cost | $ 30,913 | $ 18,292 | 15,696 |
Short-term Lease, Cost | 349 | 401 | 297 |
Finance Lease, Interest Expense | 167 | 189 | 208 |
Amortization of right-of-use assets | 226 | 226 | 226 |
Sublease Income | (1,365) | (1,357) | (1,309) |
Lease, Cost | $ 30,290 | $ 17,751 | 15,118 |
Weighted average remaining lease term | |||
Operating leases | 12 years | 10 years 5 months 8 days | |
Finance leases | 4 years 10 months 2 days | 5 years 10 months 2 days | |
Weighted average discount rate | |||
Operating leases | 4.29% | 3.11% | |
Finance leases | 7.22% | 7.22% | |
Operating cash flows related to operating leases | $ 28,614 | $ 16,956 | 14,712 |
Financing cash flows related to finance leases | 167 | 189 | 208 |
Finance Lease, Principal Payments | 311 | $ 281 | $ 261 |
Operating Leases | |||
2024 | 36,814 | ||
2025 | 35,058 | ||
2026 | 32,687 | ||
2027 | 31,623 | ||
2028 | 31,133 | ||
Thereafter | 230,286 | ||
Total undiscounted lease payments | 397,601 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (92,657) | ||
Finance Leases | |||
2024 | 527 | ||
2025 | 527 | ||
2026 | 527 | ||
2027 | 527 | ||
2028 | 439 | ||
Thereafter | 0 | ||
Finance Lease, Liability, Payment, Due | 2,547 | ||
Finance Lease, Liability, Undiscounted Excess Amount | $ (401) | ||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | |
Sale Leaseback Transaction Lease Expense First 12 Months | $ 17,000 | ||
Sale and Leaseback Transaction, Gain (Loss), Net | 85,700 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | 296,272 | $ 126,767 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | 1,092 | 1,318 | |
Operating Lease, Liability | 304,944 | 133,108 | |
Finance Lease, Liability | $ 2,146 | $ 2,458 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | |
Sale Leaseback - Purchase Price | |||
Finance Leases | |||
Proceeds from Sale of Property, Plant, and Equipment | $ 198,200 | ||
Property, Plant and Equipment | |||
Right of Use Assets [Abstract] | |||
Right of Use Assets | $ 297,364 | $ 128,085 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | ||
Lease Liabilities [Abstract] | |||
Lease Liability | $ 307,090 | 135,566 | |
Finance Leases | |||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 36,528 | 71,741 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 103,919 | 206,434 | |
Building | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives | 15 years | ||
Building | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives | 30 years | ||
Leaseholds and Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 74,606 | 62,209 | |
Leaseholds and Leasehold Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives | 14 years | ||
Leaseholds and Leasehold Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives | 35 years | ||
Furniture and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 183,919 | $ 144,979 | |
Furniture and Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives | 3 years | ||
Furniture and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives | 20 years |
Deposits (Details)
Deposits (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2024 | $ 4,093,153,000 | |
2025 | 590,695,000 | |
2026 | 133,782,000 | |
2027 | 14,168,000 | |
2028 | 8,955,000 | |
Thereafter | 0 | |
Time deposits, Total | 4,840,753,000 | $ 3,489,355,000 |
Time Deposits, at or Above FDIC Insurance Limit | 1,800,000,000 | 1,300,000,000 |
Bank Overdrafts | $ 2,500,000 | $ 1,400,000 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Federal Home Loan Bank Advances | $ 2,100,000,000 | $ 464,400,000 | |
FHLB Collateral Pledged | 7,800,000,000 | ||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | |||
2024 | 0 | ||
2025 | 366,250,000 | ||
2026 | 162,500,000 | ||
2027 | 237,500,000 | ||
2028 | 1,375,000,000 | ||
Thereafter | 12,000 | ||
Federal home loan bank advances, Total | 2,141,262,000 | ||
Federal Home Loan Bank, Advances, Discount | (1,070,000) | ||
Advances from Federal Home Loan Banks | 2,138,169,000 | 464,436,000 | |
Fair value hedge | Hedging derivative | |||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | |||
Fair Value Hedges, Net | [1] | 43,706,000 | $ 56,056,000 |
Fair value hedge | Hedging derivative | Federal Home Loan Bank Advances | |||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | |||
Fair Value Hedges, Net | (2,023,000) | ||
Federal Home Loan Bank | |||
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | |||
Borrowing availability with FHLB, FRB Discount Window and other correspondent banks | 2,800,000,000 | ||
Federal Reserve Bank | |||
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | |||
Borrowing availability with FHLB, FRB Discount Window and other correspondent banks | 6,800,000,000 | ||
Correspondent Banks | |||
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | |||
Borrowing availability with FHLB, FRB Discount Window and other correspondent banks | $ 105,000,000 | ||
Weighted Average | |||
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | |||
2024 | [2] | 0% | |
2025 | [2] | 4.97% | |
2026 | [2] | 4% | |
2027 | [2] | 4.14% | |
2028 | [2] | 3.97% | |
Thereafter | [2] | 2.75% | |
Weighted average interest rate | [2] | 4.17% | |
[1]The variation margin payments for derivatives cleared through central clearing houses are characterized as settlements. At December 31, 2023 and 2022, the notional amount of fair value derivatives hedges cleared through clearing houses is $2.0 billion and $877.7 million with a fair value that approximates zero due to $4.0 million and $47.9 million in variation margin payments.[2] Some FHLB advances include variable interest rates and could increase in the future. The table reflects rates in effect as of December 31, 2023. |
Other borrowings (Details)
Other borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Debt Instrument [Line Items] | |||
Subordinated debt and other borrowings | $ 424,938 | $ 424,055 | |
Debt issuance costs and fair value adjustments | $ (8,057) | ||
Pinnacle Statutory Trust I | |||
Debt Instrument [Line Items] | |||
Date Established | Dec. 29, 2003 | ||
Maturity | Dec. 30, 2033 | ||
Subordinated debt and other borrowings | $ 10,310 | ||
Interest Rate (as percent) | 8.44% | ||
Coupon Structure | 3-month SOFR + 2.80%(1) | ||
Debt Instrument, Basis Spread on Variable Rate | 2.80% | ||
Pinnacle Statutory Trust II | |||
Debt Instrument [Line Items] | |||
Date Established | Sep. 15, 2005 | ||
Maturity | Sep. 30, 2035 | ||
Subordinated debt and other borrowings | $ 20,619 | ||
Interest Rate (as percent) | 6.99% | ||
Coupon Structure | 3-month SOFR + 1.40%(1) | ||
Debt Instrument, Basis Spread on Variable Rate | 1.40% | ||
Pinnacle Statutory Trust III | |||
Debt Instrument [Line Items] | |||
Date Established | Sep. 07, 2006 | ||
Maturity | Sep. 30, 2036 | ||
Subordinated debt and other borrowings | $ 20,619 | ||
Interest Rate (as percent) | 7.24% | ||
Coupon Structure | 3-month SOFR + 1.65%(1) | ||
Debt Instrument, Basis Spread on Variable Rate | 1.65% | ||
Pinnacle Statutory Trust IV | |||
Debt Instrument [Line Items] | |||
Date Established | Oct. 31, 2007 | ||
Maturity | Sep. 30, 2037 | ||
Subordinated debt and other borrowings | $ 30,928 | ||
Interest Rate (as percent) | 8.50% | ||
Coupon Structure | 3-month SOFR + 2.85%(1) | ||
Debt Instrument, Basis Spread on Variable Rate | 2.85% | ||
BNC Capital Trust I | |||
Debt Instrument [Line Items] | |||
Date Established | Apr. 03, 2003 | ||
Maturity | Apr. 15, 2033 | ||
Subordinated debt and other borrowings | $ 5,155 | ||
Interest Rate (as percent) | 8.91% | ||
Coupon Structure | 3-month SOFR + 3.25%(1) | ||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||
BNC Capital Trust II | |||
Debt Instrument [Line Items] | |||
Date Established | Mar. 11, 2004 | ||
Maturity | Apr. 07, 2034 | ||
Subordinated debt and other borrowings | $ 6,186 | ||
Interest Rate (as percent) | 8.51% | ||
Coupon Structure | 3-month SOFR + 2.85%(1) | ||
Debt Instrument, Basis Spread on Variable Rate | 2.85% | ||
BNC Capital Trust III | |||
Debt Instrument [Line Items] | |||
Date Established | Sep. 23, 2004 | ||
Maturity | Sep. 23, 2034 | ||
Subordinated debt and other borrowings | $ 5,155 | ||
Interest Rate (as percent) | 8.06% | ||
Coupon Structure | 3-month SOFR + 2.40%(1) | ||
Debt Instrument, Basis Spread on Variable Rate | 2.40% | ||
BNC Capital Trust IV | |||
Debt Instrument [Line Items] | |||
Date Established | Sep. 27, 2006 | ||
Maturity | Dec. 31, 2036 | ||
Subordinated debt and other borrowings | $ 7,217 | ||
Interest Rate (as percent) | 7.29% | ||
Coupon Structure | 3-month SOFR + 1.70%(1) | ||
Debt Instrument, Basis Spread on Variable Rate | 1.70% | ||
Valley Financial Trust I | |||
Debt Instrument [Line Items] | |||
Date Established | Jun. 26, 2003 | ||
Maturity | Jun. 26, 2033 | ||
Subordinated debt and other borrowings | $ 4,124 | ||
Interest Rate (as percent) | 8.72% | ||
Coupon Structure | 3-month SOFR + 3.10%(1) | ||
Debt Instrument, Basis Spread on Variable Rate | 3.10% | ||
Valley Financial Trust II | |||
Debt Instrument [Line Items] | |||
Date Established | Sep. 26, 2005 | ||
Maturity | Dec. 15, 2035 | ||
Subordinated debt and other borrowings | $ 7,217 | ||
Interest Rate (as percent) | 7.14% | ||
Coupon Structure | 3-month SOFR + 1.49%(1) | ||
Debt Instrument, Basis Spread on Variable Rate | 1.49% | ||
Valley Financial Trust III | |||
Debt Instrument [Line Items] | |||
Date Established | Dec. 15, 2006 | ||
Maturity | Jan. 30, 2037 | ||
Subordinated debt and other borrowings | $ 5,155 | ||
Interest Rate (as percent) | 7.38% | ||
Coupon Structure | 3-month SOFR + 1.73%(1) | ||
Debt Instrument, Basis Spread on Variable Rate | 1.73% | ||
Southcoast Capital Trust III | |||
Debt Instrument [Line Items] | |||
Date Established | Aug. 05, 2005 | ||
Maturity | Sep. 30, 2035 | ||
Subordinated debt and other borrowings | $ 10,310 | ||
Interest Rate (as percent) | 7.09% | ||
Coupon Structure | 3-month SOFR + 1.50%(1) | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Pinnacle Financial Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Date Established | Sep. 11, 2019 | ||
Maturity | Sep. 15, 2029 | ||
Subordinated debt and other borrowings | [1] | $ 300,000 | |
Interest Rate (as percent) | [1] | 4.13% | |
Coupon Structure | [1] | LIBOR + 2.775% | |
Debt Instrument, Basis Spread on Variable Rate | [1] | 2.775% | |
Debt Instrument, Term of variable rate | [1] | 3 months | |
[1] three |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Federal | $ 67,711,000 | $ 104,141,000 | $ 125,016,000 | |
Current State and Local Tax Expense (Benefit) | 11,775,000 | 12,870,000 | 11,798,000 | |
Total current tax expense (benefit) | 79,486,000 | 117,011,000 | 136,814,000 | |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Federal | 67,446,000 | 15,082,000 | (12,149,000) | |
State | 4,922,000 | 4,658,000 | (83,000) | |
Deferred tax (expense) benefit | 72,368,000 | 19,740,000 | (12,232,000) | |
Income tax expense (benefit) | 151,854,000 | 136,751,000 | 124,582,000 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Income tax expense (benefit) at statutory rate | 149,941,000 | 146,474,000 | 136,900,000 | |
State excise tax expense, net of federal tax effect | 13,191,000 | 13,847,000 | 9,255,000 | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | 5,186,000 | 5,481,000 | 2,149,000 | |
Tax-exempt securities | (21,663,000) | (18,730,000) | (15,243,000) | |
Federal tax credits | (5,238,000) | (5,019,000) | (4,712,000) | |
Income Tax Reconciliation, Bank owned life insurance surrender [Abstract] | 8,572,000 | 0 | 0 | |
Effective Income Tax Rate Reconciliation, Nondeductible FDIC Expense, Amount | 5,361,000 | 2,331,000 | 1,697,000 | |
Bank owned life insurance income | (4,324,000) | (4,599,000) | (4,413,000) | |
Insurance premiums | 0 | (36,000) | (273,000) | |
Excess tax benefits associated with equity compensation | (208,000) | (3,027,000) | (2,475,000) | |
Other items | $ 1,036,000 | 29,000 | 1,697,000 | |
Federal income tax statutory rate | 21% | |||
Deferred Tax Assets, Net [Abstract] | ||||
Loan loss allowance | $ 86,911,000 | 77,015,000 | ||
Loans | 4,659,000 | 10,576,000 | ||
Insurance | 784,000 | 817,000 | ||
Accrued liability for supplemental retirement agreements | 7,005,000 | 7,595,000 | ||
Restricted stock and stock options | 6,251,000 | 7,795,000 | ||
Securities | 49,331,000 | 67,286,000 | ||
Leases | 76,918,000 | 35,589,000 | ||
Other real estate owned | 750,000 | 1,526,000 | ||
Net federal operating loss carryforward and credits | 1,064,000 | 1,168,000 | ||
Annual Incentive Compensation | 11,842,000 | 21,322,000 | ||
Deferred Tax Assets Investment in Noncontrolled Affiliates | 13,541,000 | 31,559,000 | ||
Allowance for off balance sheet credit exposures | 4,367,000 | 6,527,000 | ||
deferred tax assets deferred tax credits | 0 | 8,282,000 | ||
Other deferred tax assets | 2,532,000 | 3,267,000 | ||
Total deferred tax assets | 273,205,000 | 280,324,000 | ||
Deferred Tax Liabilities, Net [Abstract] | ||||
Depreciation and amortization | 23,140,000 | 17,723,000 | ||
Core deposit and other intangible assets | 6,087,000 | 9,070,000 | ||
REIT dividends | 2,604,000 | 2,338,000 | ||
FHLB related liabilities | 125,000 | 328,000 | ||
Right-of-use assets and other leasing transactions | 74,068,000 | 33,157,000 | ||
Deferred Tax Liabilities, Leases | 67,711,000 | 35,547,000 | ||
Subordinated debt | 1,412,000 | 1,662,000 | ||
Partnership interests | 42,000 | 76,000 | ||
Deferred Tax Liabilities, Tax Credit Investments | 7,614,000 | 0 | ||
Deferred Tax Liabilities, Derivatives | 836,000 | 6,854,000 | ||
Other deferred tax liabilities | 2,356,000 | 2,054,000 | ||
Total deferred tax liabilities | 185,995,000 | 108,809,000 | ||
Net deferred tax assets | 87,210,000 | 171,515,000 | ||
Unrecognized Tax Benefits | 8,806,000 | 15,752,000 | 12,737,000 | $ 9,658,000 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 642,000 | 3,721,000 | 3,647,000 | |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 0 | 0 | 0 | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (1,340,000) | (706,000) | (568,000) | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (6,248,000) | |||
Unrecognized Tax Benefits, Increase Resulting from Settlements with Taxing Authorities | 0 | 0 | ||
Tax Credit Carryforward, Amount | 4,800,000 | |||
Income Tax Examination, Penalties and Interest Expense | 80,000 | 264,000 | $ 0 | |
Deferred Tax Assets, Regulatory Assets and Liabilities | 7,250,000 | $ 0 | ||
Federal Deposit Insurance Corporation Special Assessment | 29,000,000 | |||
BOLI Resturcting Charge | 7,200,000 | |||
BOLI Penalty | $ 9,100,000 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||
Off-Balance Sheet, Credit Loss, Liability | $ 17,500 | $ 25,000 |
Provision for Other Losses | (7,500) | $ 2,500 |
Commitments to Extend Credit | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | 15,000,000 | |
Standby Letters of Credit | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | 325,100 | |
Home Equity Line of Credit | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | $ 1,800,000 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Expiry period of standby letter of credit, maximum | 2 years |
Salary Deferral Plans (Details)
Salary Deferral Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Compensation Arrangements [Abstract] | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 50% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4% | ||
Percentage of employee self-directed contributions matched by employer | 100% | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Compensation expense | $ 15,300 | $ 13,700 | $ 11,100 |
Other liabilities | 544,722 | 386,512 | |
Supplemental Employee Retirement Plan | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Other liabilities | 29,300 | $ 30,300 | |
SERP covered by Rabbi Trust | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Other liabilities | $ 17,700 |
Stock Options, Restricted Sha_3
Stock Options, Restricted Shares and Restricted Share Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jul. 31, 2015 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Number [Roll Forward] | |||||
Outstanding, Beginning Balance (in shares) | 40,188 | 56,147 | 101,769 | ||
Granted (in shares) | 0 | 0 | 0 | ||
Exercised (in shares) | (40,188) | (15,959) | (45,125) | ||
Forfeited (in shares) | 0 | 0 | (497) | ||
Outstanding, Ending Balance (in shares) | 0 | 40,188 | 56,147 | ||
Options exercisable (in shares) | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||||
Outstanding, Beginning Balance (in dollars per share) | $ 25 | $ 24.51 | $ 23.46 | ||
Granted (in dollars per share) | 0 | 0 | 0 | ||
Exercised (in dollars per share) | 25 | 23.28 | 22.18 | ||
Forfeited (in dollars per share) | 0 | 0 | 20 | ||
Outstanding, Ending Balance (in dollars per share) | 0 | $ 25 | $ 24.51 | ||
Options exercisable (in dollars per share) | $ 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Outstanding | 0 years | ||||
Options exercisable | 0 years | ||||
Aggregate intrinsic value [Abstract] | |||||
Outstanding | $ 0 | ||||
Options exercisable | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 1,600 | $ 1,000 | $ 3,000 | ||
Share-based Compensation [Abstract] | |||||
Restricted stock expense | 41,879 | 39,552 | 24,952 | ||
Income tax benefit | 10,470 | 10,339 | 6,522 | ||
Restricted stock expense, net of income tax benefit | 31,409 | $ 29,213 | $ 18,430 | ||
Unrecognized restricted share expense | $ 61,800 | ||||
Weighted average period over which unrecognized restricted share expense will be recognized | 1 year 10 months 20 days | ||||
Number [Roll Forward] | |||||
Unvested, beginning of period (in shares) | 675,611 | 613,335 | 594,669 | ||
Shares awards | 269,025 | 286,445 | 249,641 | ||
Restrictions lapsed and shares released to associates/directors (in shares) | (206,956) | (188,394) | (193,846) | ||
Shares forfeited (in shares) | (34,281) | (35,775) | (37,129) | ||
Unvested, end of period (in shares) | 703,399 | 675,611 | 613,335 | ||
Grant date weighted average cost [Roll Forward] | |||||
Unvested, beginning of period (in dollars per share) | $ 78.53 | $ 64.93 | $ 56.97 | ||
Shares awarded (in dollars per share) | 71.84 | 98.06 | 77 | ||
Restrictions lapsed and shares released to associates/directors (in dollars per share) | 73.17 | 64.53 | 56.47 | ||
Shares forfeited (in dollars per share) | 75.84 | 75.35 | 62.79 | ||
Unvested, end of period (in dollars per share) | $ 77.68 | $ 78.53 | $ 64.93 | ||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | 269,025 | 286,445 | 249,641 | ||
Shares forfeited (in shares) | (34,281) | (35,775) | (37,129) | ||
Shares Unvested (in shares) | 703,399 | 675,611 | 613,335 | ||
Restricted Stock Units [Abstract] | |||||
Shares awards | 269,025 | 286,445 | 249,641 | ||
Leadership Team | |||||
Number [Roll Forward] | |||||
Shares awards | 112,561 | 130,996 | 134,146 | ||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | 112,561 | 130,996 | 134,146 | ||
Restricted Stock Units [Abstract] | |||||
Shares awards | 112,561 | 130,996 | 134,146 | ||
Restricted shares withheld for taxes and related tax benefit (in shares) | 39,139 | 46,684 | 46,616 | ||
Performance Unit Awards | |||||
Number [Roll Forward] | |||||
Shares forfeited (in shares) | (9,967) | 0 | (199,633) | ||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares forfeited (in shares) | (9,967) | 0 | (199,633) | ||
Restricted Stock Units | |||||
Number [Roll Forward] | |||||
Unvested, beginning of period (in shares) | 73,983 | 56,368 | 0 | ||
Shares awards | 70,716 | 38,133 | 56,864 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Restrictions lapsed and shares released, weighted average grant date fair value | $ 83.75 | $ 71.24 | $ 70.95 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Restrictions lapsed and shares released to associates and directors | (34,465) | (18,897) | (128) | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value | $ 78.83 | $ 85.50 | $ 70.95 | ||
Shares forfeited (in shares) | (7,357) | (1,621) | (368) | ||
Unvested, end of period (in shares) | 102,877 | 73,983 | 56,368 | ||
Grant date weighted average cost [Roll Forward] | |||||
Unvested, beginning of period (in dollars per share) | $ 88.21 | $ 71.22 | $ 0 | ||
Shares awarded (in dollars per share) | 70.25 | 104.80 | 71.21 | ||
Unvested, end of period (in dollars per share) | $ 78.03 | $ 88.21 | $ 71.22 | ||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | 70,716 | 38,133 | 56,864 | ||
Shares forfeited (in shares) | (7,357) | (1,621) | (368) | ||
Shares Unvested (in shares) | 102,877 | 73,983 | 56,368 | ||
Restricted Stock Units [Abstract] | |||||
Shares awards | 70,716 | 38,133 | 56,864 | ||
Time Based Awards 2020 | Associates | |||||
Number [Roll Forward] | |||||
Shares awards | [1] | 237,811 | |||
Shares forfeited (in shares) | [1],[2] | (30,455) | |||
Unvested, end of period (in shares) | [1] | 121,838 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | [1] | 237,811 | |||
Restrictions lapsed and shares released to participants (in shares) | [1] | 60,966 | |||
Shares withheld for taxes by participants (in shares) | [1] | 24,552 | |||
Shares forfeited (in shares) | [1],[2] | (30,455) | |||
Shares Unvested (in shares) | [1] | 121,838 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [1] | 237,811 | |||
Time Based Awards 2020 | Associates | Minimum | |||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Vesting Period in years | [1] | 3 years | |||
Time Based Awards 2020 | Associates | Maximum | |||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Vesting Period in years | [1] | 5 years | |||
Time Based Awards 2021 | Associates | |||||
Number [Roll Forward] | |||||
Shares awards | [1] | 276,965 | |||
Shares forfeited (in shares) | [1],[2] | (16,723) | |||
Unvested, end of period (in shares) | [1] | 207,997 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | [1] | 276,965 | |||
Restrictions lapsed and shares released to participants (in shares) | [1] | 37,226 | |||
Shares withheld for taxes by participants (in shares) | [1] | 15,019 | |||
Shares forfeited (in shares) | [1],[2] | (16,723) | |||
Shares Unvested (in shares) | [1] | 207,997 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [1] | 276,965 | |||
Time Based Awards 2021 | Associates | Minimum | |||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Vesting Period in years | [1] | 3 years | |||
Time Based Awards 2021 | Associates | Maximum | |||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Vesting Period in years | [1] | 5 years | |||
Time Based Awards 2022 | Associates | |||||
Number [Roll Forward] | |||||
Shares awards | [1] | 258,185 | |||
Shares forfeited (in shares) | [1],[2] | (15,995) | |||
Unvested, end of period (in shares) | [1] | 241,677 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | [1] | 258,185 | |||
Restrictions lapsed and shares released to participants (in shares) | [1] | 328 | |||
Shares withheld for taxes by participants (in shares) | [1] | 185 | |||
Shares forfeited (in shares) | [1],[2] | (15,995) | |||
Shares Unvested (in shares) | [1] | 241,677 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [1] | 258,185 | |||
Time Based Awards 2022 | Associates | Minimum | |||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Vesting Period in years | [1] | 3 years | |||
Time Based Awards 2022 | Associates | Maximum | |||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Vesting Period in years | [1] | 5 years | |||
Outside Director Awards 2020 | |||||
Number [Roll Forward] | |||||
Shares awards | [3] | 11,830 | |||
Shares forfeited (in shares) | [2],[3] | 0 | |||
Unvested, end of period (in shares) | [3] | 0 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Vesting Period in years | [3] | 1 year | |||
Shares awards | [3] | 11,830 | |||
Restrictions lapsed and shares released to participants (in shares) | [3] | 10,222 | |||
Shares withheld for taxes by participants (in shares) | [3] | 1,608 | |||
Shares forfeited (in shares) | [2],[3] | 0 | |||
Shares Unvested (in shares) | [3] | 0 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [3] | 11,830 | |||
Outside Director Awards 2021 | |||||
Number [Roll Forward] | |||||
Shares awards | [3] | 9,480 | |||
Shares forfeited (in shares) | [2],[3] | 0 | |||
Unvested, end of period (in shares) | [3] | 0 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Vesting Period in years | [3] | 1 year | |||
Shares awards | [3] | 9,480 | |||
Restrictions lapsed and shares released to participants (in shares) | [3] | 7,740 | |||
Shares withheld for taxes by participants (in shares) | [3] | 1,740 | |||
Shares forfeited (in shares) | [2],[3] | 0 | |||
Shares Unvested (in shares) | [3] | 0 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [3] | 9,480 | |||
Outside Director Awards 2022 | |||||
Number [Roll Forward] | |||||
Shares awards | [3] | 10,840 | |||
Shares forfeited (in shares) | [2],[3] | 0 | |||
Unvested, end of period (in shares) | [3] | 10,840 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Vesting Period in years | [3] | 1 year | |||
Shares awards | [3] | 10,840 | |||
Restrictions lapsed and shares released to participants (in shares) | [3] | 0 | |||
Shares withheld for taxes by participants (in shares) | [3] | 0 | |||
Shares forfeited (in shares) | [2],[3] | 0 | |||
Shares Unvested (in shares) | [3] | 10,840 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [3] | 10,840 | |||
2021 Restricted Stock Units | |||||
Number [Roll Forward] | |||||
Shares awards | 56,864 | ||||
Shares forfeited (in shares) | [4] | (2,706) | |||
Unvested, end of period (in shares) | 16,600 | ||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Vesting Period in years | 3 years | ||||
Shares awards | 56,864 | ||||
Restrictions lapsed and shares released to participants (in shares) | 24,905 | ||||
Shares forfeited (in shares) | [4] | (2,706) | |||
Shares Unvested (in shares) | 16,600 | ||||
Restricted Stock Units [Abstract] | |||||
Shares awards | 56,864 | ||||
Restricted shares withheld for taxes and related tax benefit (in shares) | 12,653 | ||||
2022 Restricted Stock Units | |||||
Number [Roll Forward] | |||||
Shares awards | 38,133 | ||||
Shares forfeited (in shares) | [4] | (2,300) | |||
Unvested, end of period (in shares) | 22,781 | ||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Vesting Period in years | 3 years | ||||
Shares awards | 38,133 | ||||
Restrictions lapsed and shares released to participants (in shares) | 8,848 | ||||
Shares forfeited (in shares) | [4] | (2,300) | |||
Shares Unvested (in shares) | 22,781 | ||||
Restricted Stock Units [Abstract] | |||||
Shares awards | 38,133 | ||||
Restricted shares withheld for taxes and related tax benefit (in shares) | 4,204 | ||||
2022 Performance Stock Units | Senior Executive Officers | Minimum | |||||
Number [Roll Forward] | |||||
Shares awards | [5] | 56,465 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | [5] | 56,465 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [5] | 56,465 | |||
2022 Performance Stock Units | Senior Executive Officers | Maximum | |||||
Number [Roll Forward] | |||||
Shares awards | [5] | 135,514 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | [5] | 135,514 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [5] | 135,514 | |||
2022 Performance Stock Units | Leadership Team | |||||
Number [Roll Forward] | |||||
Shares awards | 32,320 | ||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | 32,320 | ||||
Restricted Stock Units [Abstract] | |||||
Shares awards | 32,320 | ||||
2022 Special Performance Stock Units | Senior Executive Officers | Maximum | |||||
Number [Roll Forward] | |||||
Shares awards | [5] | 230,000 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | [5] | 230,000 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [5] | 230,000 | |||
2021 Performance Stock Units | Senior Executive Officers | Minimum | |||||
Number [Roll Forward] | |||||
Shares awards | [5] | 89,234 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | [5] | 89,234 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [5] | 89,234 | |||
2021 Performance Stock Units | Senior Executive Officers | Maximum | |||||
Number [Roll Forward] | |||||
Shares awards | [5] | 214,155 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | [5] | 214,155 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [5] | 214,155 | |||
2021 Performance Stock Units | Leadership Team | |||||
Number [Roll Forward] | |||||
Shares awards | 45,240 | ||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | 45,240 | ||||
Restricted Stock Units [Abstract] | |||||
Shares awards | 45,240 | ||||
2020 Performance Stock Units | Senior Executive Officers | Minimum | |||||
Number [Roll Forward] | |||||
Shares awards | [5] | 136,137 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | [5] | 136,137 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [5] | 136,137 | |||
2020 Performance Stock Units | Senior Executive Officers | Maximum | |||||
Number [Roll Forward] | |||||
Shares awards | [5] | 204,220 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | [5] | 204,220 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [5] | 204,220 | |||
2020 Performance Stock Units | Leadership Team | |||||
Number [Roll Forward] | |||||
Shares awards | 59,648 | ||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | 59,648 | ||||
Restricted Stock Units [Abstract] | |||||
Shares awards | 59,648 | ||||
2019 Performance Stock Units | Senior Executive Officers | Minimum | |||||
Number [Roll Forward] | |||||
Shares awards | [5] | 166,211 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | [5] | 166,211 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [5] | 166,211 | |||
2019 Performance Stock Units | Senior Executive Officers | Maximum | |||||
Number [Roll Forward] | |||||
Shares awards | [5] | 249,343 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | [5] | 249,343 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [5] | 249,343 | |||
2019 Performance Stock Units | Leadership Team | |||||
Number [Roll Forward] | |||||
Shares awards | 52,244 | ||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | 52,244 | ||||
Restricted Stock Units [Abstract] | |||||
Shares awards | 52,244 | ||||
2023 Restricted Stock Units | |||||
Number [Roll Forward] | |||||
Shares awards | 70,716 | ||||
Shares forfeited (in shares) | (4,340) | ||||
Unvested, end of period (in shares) | 63,496 | ||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Vesting Period in years | 3 years | ||||
Shares awards | 70,716 | ||||
Restrictions lapsed and shares released to participants (in shares) | 2,140 | ||||
Shares forfeited (in shares) | (4,340) | ||||
Shares Unvested (in shares) | 63,496 | ||||
Restricted Stock Units [Abstract] | |||||
Shares awards | 70,716 | ||||
Restricted shares withheld for taxes and related tax benefit (in shares) | 740 | ||||
2023 Performance Stock Units | Senior Executive Officers | Minimum | |||||
Number [Roll Forward] | |||||
Shares awards | [5] | 103,136 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | [5] | 103,136 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [5] | 103,136 | |||
2023 Performance Stock Units | Senior Executive Officers | Maximum | |||||
Number [Roll Forward] | |||||
Shares awards | [5] | 247,515 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | [5] | 247,515 | |||
Restricted Stock Units [Abstract] | |||||
Shares awards | [5] | 247,515 | |||
2023 Performance Stock Units | Leadership Team | |||||
Number [Roll Forward] | |||||
Shares awards | 61,673 | ||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||
Shares awards | 61,673 | ||||
Restricted Stock Units [Abstract] | |||||
Shares awards | 61,673 | ||||
Tranche 2022-2024 | 2022 Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 0 years | ||||
Restricted Stock Units [Abstract] | |||||
Service period per tranche (in years) | 0 years | ||||
Subsequent holding period per tranche (in years) | 0 years | ||||
Tranche 2022-2024 | 2022 Special Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 0 years | ||||
Restricted Stock Units [Abstract] | |||||
Service period per tranche (in years) | 0 years | ||||
Subsequent holding period per tranche (in years) | 1 year | ||||
Tranche 2021-2023 | 2021 Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 0 years | ||||
Restricted Stock Units [Abstract] | |||||
Service period per tranche (in years) | 0 years | ||||
Subsequent holding period per tranche (in years) | 0 years | ||||
Tranche 2022 | 2020 Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 2 years | ||||
Restricted Stock Units [Abstract] | |||||
Service period per tranche (in years) | 2 years | ||||
Subsequent holding period per tranche (in years) | 1 year | ||||
Tranche 2021 | 2020 Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 2 years | ||||
Restricted Stock Units [Abstract] | |||||
Service period per tranche (in years) | 2 years | ||||
Subsequent holding period per tranche (in years) | 2 years | ||||
Tranche 2021 | 2019 Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 2 years | ||||
Restricted Stock Units [Abstract] | |||||
Service period per tranche (in years) | 2 years | ||||
Subsequent holding period per tranche (in years) | 1 year | ||||
Tranche 2020 | 2020 Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 2 years | ||||
Restricted Stock Units [Abstract] | |||||
Service period per tranche (in years) | 2 years | ||||
Subsequent holding period per tranche (in years) | 3 years | ||||
Tranche 2020 | 2019 Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 2 years | ||||
Restricted Stock Units [Abstract] | |||||
Service period per tranche (in years) | 2 years | ||||
Subsequent holding period per tranche (in years) | 2 years | ||||
Tranche 2019 | 2019 Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 2 years | ||||
Restricted Stock Units [Abstract] | |||||
Service period per tranche (in years) | 2 years | ||||
Subsequent holding period per tranche (in years) | 3 years | ||||
Tranche 2023-2025 | 2023 Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 0 years | ||||
Restricted Stock Units [Abstract] | |||||
Service period per tranche (in years) | 0 years | ||||
Subsequent holding period per tranche (in years) | 0 years | ||||
Equity Incentive Plan 2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 921,000 | ||||
CapitalMark Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Acquisitions in Period | 858,000 | ||||
[1] The forfeiture restrictions on these restricted share awards lapse in equal annual installments on the anniversary date of the grant. Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapse on March 1, 2024 based on each individual board member meeting attendance goals for the various board and board committee meetings to which each member was scheduled to attend. These shares represent forfeitures resulting from recipients whose employment was terminated during the life-to-date period ended December 31, 2023. Dividend equivalents are held in escrow for award recipients for dividends paid prior to the forfeiture restrictions lapsing. Such dividend equivalents are not released from escrow if an award is forfeited. The named executive officers are awarded a range of awards that generally may be earned based on attainment of goals between a target level of performance and a maximum level of performance. The 230,000 performance units awarded to the NEOs in 2022 may be earned based on target level performance and do not include maximum level payout. |
Derivative Instruments - Non-he
Derivative Instruments - Non-hedge Derivatives (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (308) | $ 53 | $ 846 | |
Notional | 4,075,480 | 3,241,040 | ||
Estimated fair value | (744) | [1] | (56,720) | |
Assets | ||||
Derivative [Line Items] | ||||
Notional | 2,037,740 | 1,620,520 | ||
Estimated fair value | 66,462 | [1] | 39,763 | |
Liabilities | ||||
Derivative [Line Items] | ||||
Notional | 2,037,740 | 1,620,520 | ||
Estimated fair value | $ (67,206) | [1] | $ (96,483) | |
[1]The variation margin payments for derivatives cleared through central clearing houses are characterized as settlements. At December 31, 2023, no notional amounts of interest rate swap agreements designated as non-hedge derivatives cleared through clearing houses. At December 31, 2022, the notional amount of interest rate swap agreements designated as non-hedge derivatives cleared through clearing houses was $827.3 million with a fair value that approximates zero due to $56.3 million in variation margin payments. |
Derivative Instruments - Hedge
Derivative Instruments - Hedge Derivatives (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Oct. 13, 2022 | Apr. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Derivative [Line Items] | ||||||
Net gain on cash flow hedges reclassified from other comprehensive income into net income, net of tax | $ (9,689,000) | $ (9,975,000) | $ (9,645,000) | |||
Amortization | 3,300,000 | 2,800,000 | 1,600,000 | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 9,000,000 | |||||
Hedging derivative | Fair value hedge | ||||||
Derivative [Line Items] | ||||||
Notional | 3,287,139,000 | 1,420,724,000 | ||||
Amortization | 645,000 | 1,900,000 | 3,500,000 | |||
Fair Value Hedges, Net | [1] | 43,706,000 | 56,056,000 | |||
Hedging derivative | Fair value hedge | Federal Funds Rate | ||||||
Derivative [Line Items] | ||||||
Forecasted Notional Amount of Interest Rate Derivatives | 392,200,000 | |||||
Hedging derivative | Fair value hedge | Secured Overnight Financing Rate | ||||||
Derivative [Line Items] | ||||||
Forecasted Notional Amount of Interest Rate Derivatives | 2,900,000,000 | |||||
Hedging derivative | Fair value hedge | Federal Home Loan Bank Advances | ||||||
Derivative [Line Items] | ||||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 1,998,000 | 0 | 0 | |||
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | (1,998,000) | 0 | 0 | |||
Fair Value Hedges, Net | (2,023,000) | |||||
Forecasted Notional Amount of Interest Rate Derivatives | 1,200,000,000 | |||||
Hedging derivative | Fair value hedge | Federal Home Loan Bank Certificates and Obligations (FHLB) | ||||||
Derivative [Line Items] | ||||||
Derivative Instruments and Hedges, Assets | 1,173,002,000 | 0 | ||||
Fair Value Hedging Adjustment | (1,998,000) | 0 | ||||
Hedging derivative | Fair value hedge | Securities | ||||||
Derivative [Line Items] | ||||||
Derivative Instruments and Hedges, Assets | 2,074,621,000 | 1,445,511,000 | ||||
Fair Value Hedging Adjustment | (41,708,000) | (56,056,000) | ||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | (14,348,000) | 80,728,000 | 42,642,000 | |||
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | 14,348,000 | (80,728,000) | (42,642,000) | |||
Asset derivatives | Hedging derivative | Cash flow hedge | ||||||
Derivative [Line Items] | ||||||
Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | (7,414,000) | 1,002,000 | $ (15,034,000) | |||
Notional | 1,750,000,000 | 1,750,000,000 | ||||
Cash Flow Hedges Derivative Instruments at Fair Value, Net | $ 74,797,000 | 94,175,000 | ||||
Asset derivatives | Hedging derivative | Fair value hedge | Federal Home Loan Bank Advances | ||||||
Derivative [Line Items] | ||||||
Pay Rate (as percent) | 0% | |||||
Notional | $ 750,000,000 | 0 | ||||
Weighted Average Remaining Maturity Derivative | 3 years 6 months 10 days | |||||
Derivative, Underlying Basis | N/A | |||||
Fair Value Hedge Assets | [1] | $ 3,654,000 | 0 | |||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | |||||
Asset derivatives | Hedging derivative | Fair value hedge | Securities | ||||||
Derivative [Line Items] | ||||||
Pay Rate (as percent) | 1.97% | |||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | $ 986,000 | |||||
Notional | $ 543,061,000 | 1,420,724,000 | ||||
Weighted Average Remaining Maturity Derivative | 10 years 1 month 28 days | |||||
Derivative, Underlying Basis | Federal funds/SOFR | |||||
Fair Value Hedge Assets | [1] | $ 42,983,000 | $ 56,056,000 | |||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | ||||
Gain (Loss) on Fair Value Hedges to be Recognized in Earnings | 10,000,000 | |||||
Terminated Fair Value Amount of Interest Rate Derivatives | 14,300,000 | |||||
Terminated Notional Amount of Interest Rate Derivatives | $ 164,300,000 | |||||
Asset derivatives | Hedging derivative | Interest Rate Floor | ||||||
Derivative [Line Items] | ||||||
Receive Rate | N/A | |||||
Notional | $ 875,000,000 | $ 875,000,000 | ||||
Cash Flow Hedges Derivative Instruments at Fair Value, Net | $ 36,483,000 | $ 48,622,000 | ||||
Weighted Average Remaining Maturity Derivative | 3 years 10 months 2 days | |||||
Derivative, Type of Interest Received | 4.00%-4.50% minus USD-Term SOFR 1M | |||||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | ||||
Asset derivatives | Hedging derivative | Interest Rate Contract | ||||||
Derivative [Line Items] | ||||||
Receive Rate | USD-Term SOFR 1M minus 6.75%-7.00% | |||||
Notional | $ 875,000,000 | $ 875,000,000 | ||||
Cash Flow Hedges Derivative Instruments at Fair Value, Net | $ 38,314,000 | $ 45,553,000 | ||||
Weighted Average Remaining Maturity Derivative | 3 years 10 months 2 days | |||||
Derivative, Type of Interest Received | 4.25%-4.75% minus USD-Term SOFR 1M | |||||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | ||||
Liability derivatives | Hedging derivative | Fair value hedge | Federal Home Loan Bank Advances | ||||||
Derivative [Line Items] | ||||||
Pay Rate (as percent) | 0% | |||||
Weighted Average Remaining Maturity Derivative | 4 years 1 month 2 days | |||||
Derivative, Underlying Basis | N/A | |||||
Fair Value Hedge Liabilities | [1] | $ (1,656,000) | $ 0 | |||
Forecasted Notional Amount of Interest Rate Derivatives | $ 425,000,000 | 0 | ||||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | |||||
Liability derivatives | Hedging derivative | Fair value hedge | Securities | ||||||
Derivative [Line Items] | ||||||
Pay Rate (as percent) | 3.10% | |||||
Notional | $ 1,569,078,000 | 0 | ||||
Weighted Average Remaining Maturity Derivative | 11 years 2 months 19 days | |||||
Derivative, Underlying Basis | Federal funds/SOFR | |||||
Fair Value Hedge Liabilities | [1] | $ (1,275,000) | $ 0 | |||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | |||||
Cash flow hedge | Hedging derivative | ||||||
Derivative [Line Items] | ||||||
Notional | $ 1,800,000,000 | |||||
Derivative, Cost of Hedge | $ 95,700,000 | |||||
[1]The variation margin payments for derivatives cleared through central clearing houses are characterized as settlements. At December 31, 2023 and 2022, the notional amount of fair value derivatives hedges cleared through clearing houses is $2.0 billion and $877.7 million with a fair value that approximates zero due to $4.0 million and $47.9 million in variation margin payments. |
Employee Contract (Details)
Employee Contract (Details) | 12 Months Ended |
Dec. 31, 2023 contract | |
Compensation Related Costs [Abstract] | |
Number of senior executives that enter into automatic renewing employment agreements | 4 |
Number of senior executive to whom entity is obligated to pay certain amount | 4 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Assets, Fair Value Disclosure [Abstract] | |||
Other Investments | $ 157,100 | $ 131,000 | |
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | |||
Valuation allowance of impaired loans | 18,600 | 6,500 | |
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | |||
Transfers out of Level 3 | 0 | ||
Other Liabilities | |||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | |||
Fair value, beginning of period | 0 | 0 | |
Total realized gains included in income | 0 | 0 | |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | |
Purchases | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair value, December 31 | 0 | 0 | |
Other Assets | |||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | |||
Fair value, beginning of period | 130,982 | 100,996 | |
Total realized gains included in income | 3,112 | 10,605 | |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | |
Purchases | 32,515 | 33,208 | |
Issuances | 0 | 0 | |
Settlements | (9,469) | (13,827) | |
Transfers out of Level 3 | 0 | 0 | |
Fair value, December 31 | 157,140 | 130,982 | |
Available-for-sale Securities | |||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | |||
Fair value, beginning of period | 629 | 828 | |
Total realized gains included in income | 4 | 7 | |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 5 | (48) | |
Purchases | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (159) | (158) | |
Transfers out of Level 3 | 0 | 0 | |
Fair value, December 31 | 479 | 629 | |
Fair Value, Measurements, Nonrecurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total assets at fair value | 56,104 | 41,719 | |
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | |||
Other real estate owned | 3,937 | 7,952 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [1] | 52,167 | 33,767 |
Fair Value, Measurements, Nonrecurring | Quoted Market Prices in an Active Market (Level 1) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | |||
Other real estate owned | 0 | 0 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [1] | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Models with Significant Observable Market Parameters (Level 2) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | |||
Other real estate owned | 0 | 0 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [1] | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Models with Significant Unobservable Market Parameters (Level 3) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total assets at fair value | 56,104 | 41,719 | |
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | |||
Other real estate owned | 3,937 | 7,952 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [1] | 52,167 | 33,767 |
Fair Value, Measurements, Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
U.S. treasury securities | 893,412 | 194,184 | |
U.S. government agency securities | 262,730 | 396,157 | |
Mortgage-backed securities | 947,390 | 971,576 | |
State and municipal securities | 1,585,895 | 1,412,306 | |
Asset-backed securities | 191,635 | 117,403 | |
Corporate notes and other, Fair Value Disclosure | 436,468 | 467,244 | |
Total investment securities available-for-sale | 4,317,530 | 3,558,870 | |
Other Investments | 179,487 | 153,011 | |
Other assets | 197,541 | 190,629 | |
Total assets at fair value | 4,694,558 | 3,902,510 | |
Liabilities at fair value [Abstract] | |||
Other liabilities | 79,068 | 96,483 | |
Total liabilities at fair value | 79,068 | 96,483 | |
Fair Value, Measurements, Recurring | Quoted Market Prices in an Active Market (Level 1) | |||
Assets, Fair Value Disclosure [Abstract] | |||
U.S. treasury securities | 0 | 0 | |
U.S. government agency securities | 0 | 0 | |
Mortgage-backed securities | 0 | 0 | |
State and municipal securities | 0 | 0 | |
Asset-backed securities | 0 | 0 | |
Corporate notes and other, Fair Value Disclosure | 0 | 0 | |
Total investment securities available-for-sale | 0 | 0 | |
Other Investments | 0 | 0 | |
Other assets | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Liabilities at fair value [Abstract] | |||
Other liabilities | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Models with Significant Observable Market Parameters (Level 2) | |||
Assets, Fair Value Disclosure [Abstract] | |||
U.S. treasury securities | 893,412 | 194,184 | |
U.S. government agency securities | 262,730 | 396,157 | |
Mortgage-backed securities | 947,390 | 971,576 | |
State and municipal securities | 1,585,416 | 1,411,677 | |
Asset-backed securities | 191,635 | 117,403 | |
Corporate notes and other, Fair Value Disclosure | 436,468 | 467,244 | |
Total investment securities available-for-sale | 4,317,051 | 3,558,241 | |
Other Investments | 22,347 | 22,029 | |
Other assets | 197,541 | 190,629 | |
Total assets at fair value | 4,536,939 | 3,770,899 | |
Liabilities at fair value [Abstract] | |||
Other liabilities | 79,068 | 96,483 | |
Total liabilities at fair value | 79,068 | 96,483 | |
Fair Value, Measurements, Recurring | Models with Significant Unobservable Market Parameters (Level 3) | |||
Assets, Fair Value Disclosure [Abstract] | |||
U.S. treasury securities | 0 | 0 | |
U.S. government agency securities | 0 | 0 | |
Mortgage-backed securities | 0 | 0 | |
State and municipal securities | 479 | 629 | |
Asset-backed securities | 0 | 0 | |
Corporate notes and other, Fair Value Disclosure | 0 | 0 | |
Total investment securities available-for-sale | 479 | 629 | |
Other Investments | 157,140 | 130,982 | |
Other assets | 0 | 0 | |
Total assets at fair value | 157,619 | 131,611 | |
Liabilities at fair value [Abstract] | |||
Other liabilities | 0 | 0 | |
Total liabilities at fair value | $ 0 | $ 0 | |
[1] The carrying values of collateral dependent loans at December 31, 2023 and 2022 are net of valuation allowances of $18.6 million and $6.5 million, respectively. |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments, Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | ||
Financial assets [Abstract] | ||||
Securities held-to-maturity, fair value | $ 2,775,184 | $ 2,744,946 | ||
Securities Purchased under Agreements to Resell | 558,009 | 513,276 | ||
Quoted Market Prices in an Active Market (Level 1) | ||||
Financial assets [Abstract] | ||||
Securities held-to-maturity, fair value | 0 | 0 | ||
Loans Receivable, Fair Value Disclosure | 0 | 0 | ||
Consumer loans held-for-sale | 0 | 0 | ||
Commercial loans held-for-sale | 0 | 0 | ||
Securities Purchased under Agreements to Resell | 0 | 0 | ||
Financial liabilities [Abstract] | ||||
Deposits and securities sold under agreements to repurchase, fair value disclosure | 0 | 0 | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Subordinated debt and other borrowings | 0 | 0 | ||
Models with Significant Observable Market Parameters (Level 2) | ||||
Financial assets [Abstract] | ||||
Securities held-to-maturity, fair value | 2,775,184 | 2,744,946 | ||
Loans Receivable, Fair Value Disclosure | 0 | 0 | ||
Consumer loans held-for-sale | 104,626 | 42,353 | ||
Commercial loans held-for-sale | 9,316 | 21,151 | ||
Securities Purchased under Agreements to Resell | 0 | 0 | ||
Financial liabilities [Abstract] | ||||
Deposits and securities sold under agreements to repurchase, fair value disclosure | 0 | 0 | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Subordinated debt and other borrowings | 0 | 0 | ||
Models with Significant Unobservable Market Parameters (Level 3) | ||||
Financial assets [Abstract] | ||||
Securities held-to-maturity, fair value | 0 | 0 | ||
Loans Receivable, Fair Value Disclosure | 31,863,583 | 27,901,662 | ||
Consumer loans held-for-sale | 0 | 0 | ||
Commercial loans held-for-sale | 0 | 0 | ||
Securities Purchased under Agreements to Resell | 461,375 | 440,390 | ||
Financial liabilities [Abstract] | ||||
Deposits and securities sold under agreements to repurchase, fair value disclosure | 37,954,938 | 34,435,447 | ||
Federal Home Loan Bank advances | 2,166,912 | 477,673 | ||
Subordinated debt and other borrowings | 462,399 | 430,884 | ||
Reported Value Measurement [Member] | ||||
Financial assets [Abstract] | ||||
Securities held-to-maturity, fair value | 3,006,357 | 3,079,050 | ||
Loans Receivable, Fair Value Disclosure | 32,323,036 | 28,740,940 | ||
Consumer loans held-for-sale | 104,217 | 42,237 | ||
Commercial loans held-for-sale | 9,280 | 21,093 | ||
Securities Purchased under Agreements to Resell | 558,009 | 513,276 | ||
Financial liabilities [Abstract] | ||||
Deposits and securities sold under agreements to repurchase, fair value disclosure | 38,749,299 | 35,156,148 | ||
Federal Home Loan Bank advances | 2,138,169 | 464,436 | ||
Subordinated debt and other borrowings | 424,938 | 424,055 | ||
Estimate of Fair Value Measurement [Member] | ||||
Financial assets [Abstract] | ||||
Securities held-to-maturity, fair value | [1] | 2,775,184 | 2,744,946 | |
Loans Receivable, Fair Value Disclosure | [1] | 31,863,583 | 27,901,662 | |
Consumer loans held-for-sale | [1] | 104,626 | 42,353 | |
Commercial loans held-for-sale | [1] | 9,316 | 21,151 | |
Securities Purchased under Agreements to Resell | 461,375 | [1] | 440,390 | |
Financial liabilities [Abstract] | ||||
Deposits and securities sold under agreements to repurchase, fair value disclosure | [1] | 37,954,938 | 34,435,447 | |
Federal Home Loan Bank advances | [1] | 2,166,912 | 477,673 | |
Subordinated debt and other borrowings | [1] | $ 462,399 | $ 430,884 | |
[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. |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | ||
Proceeds from Issuance of Subordinated Long-term Debt | $ 133,000,000 | |
Subordinated Debt | Trust Preferred Issuances | ||
Variable Interest Entity [Line Items] | ||
Liability Recognized | 132,995,000 | $ 132,995,000 |
Other Assets | Low Income Housing Partnerships | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 260,476,000 | 228,372,000 |
Liability Recognized | 0 | 0 |
Other Assets | Variable Interest Entity Primary Beneficiary four | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 27,600 | 6,118 |
Liability Recognized | $ 0 | $ 0 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Preceding period of retained earnings used in calculation of dividend payable | 2 years | |||||
Retained earnings | $ 2,784,927,000 | $ 2,341,706,000 | ||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries | $ 106,200,000 | |||||
Dividends Payable, Amount Per Share | $ 0.22 | $ 0.18 | ||||
Preferred Stock, Dividend Rate, Per-Dollar-Amount | $ 16.88 | |||||
Preferred Stock, Dividend Per Depositary Share | $ 0.422 | |||||
Depositary Shares | 9,000 | |||||
ASU 2016-13 Cumulative Transition Adjustments | $ 68,000,000 | |||||
Pinnacle Bank | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Retained earnings | 1,400,000,000 | |||||
Actual Amount | ||||||
Total capital to risk weighted assets: | 4,797,278,000 | 4,282,742,000 | ||||
Tier I capital to risk weighted assets: | 4,465,282,000 | 4,015,550,000 | ||||
Common Equity Tier 1 capital to risk weighted assets: | 4,465,159,000 | 4,015,427,000 | ||||
Tier I capital to average assets (*): | [1] | $ 4,465,282,000 | $ 4,015,550,000 | |||
Actual Ratios | ||||||
Total capital to risk weighted assets: | 12% | 11.60% | ||||
Tier I capital to risk weighted assets: | 11.10% | 10.90% | ||||
Common equity Tier 1 capital: | 11.10% | 10.90% | ||||
Tier I capital to average assets (*): | [1] | 9.70% | 10.10% | |||
Minimum Capital Requirement | ||||||
Total capital to risk weighted assets: | $ 3,207,699,000 | $ 2,941,082,000 | ||||
Tier I capital to risk weighted assets: | 2,405,774,000 | 2,205,812,000 | ||||
Common equity Tier 1 capital to risk weighted assets: | 1,804,330,000 | 1,654,359,000 | ||||
Tier I capital to average assets (*): | [1] | $ 1,847,972,000 | $ 1,591,502,000 | |||
Minimum Capital Requirement - Ratios | ||||||
Total capital to risk weighted assets: | 8% | 8% | ||||
Tier I capital to risk weighted assets: | 6% | 6% | ||||
Common equity Tier 1 risk based capital to risk weighted assets: | 4.50% | 4.50% | ||||
Tier I capital to average assets (*): | [1] | 4% | 4% | |||
Minimum To Be Well Capitalized | ||||||
Total capital to risk weighted assets: | $ 4,009,623,000 | $ 3,676,353,000 | ||||
Tier I capital to risk weighted assets: | 3,207,699,000 | 2,941,082,000 | ||||
Common equity Tier 1 capital to risk weighted assets: | 2,606,255,000 | 2,389,629,000 | ||||
Tier I capital to average assets (*): | [1] | $ 2,309,965,000 | $ 1,989,378,000 | |||
Minimum To Be Well Capitalized - Ratios | ||||||
Total capital to risk weighted assets: | 10% | 10% | ||||
Tier I capital to risk weighted assets: | 8% | 8% | ||||
Common equity Tier 1 capital to risk weighted assets: | 6.50% | 6.50% | ||||
Tier I capital to average assets (*): | [1] | 5% | 5% | |||
Pinnacle Financial | ||||||
Actual Amount | ||||||
Total capital to risk weighted assets: | $ 5,115,755,000 | $ 4,584,292,000 | ||||
Tier I capital to risk weighted assets: | 4,354,759,000 | 3,888,100,000 | ||||
Common Equity Tier 1 capital to risk weighted assets: | 4,137,510,000 | 3,670,851,000 | ||||
Tier I capital to average assets (*): | [1] | $ 4,354,759,000 | $ 3,888,100,000 | |||
Actual Ratios | ||||||
Total capital to risk weighted assets: | 12.70% | 12.40% | ||||
Tier I capital to risk weighted assets: | 10.80% | 10.50% | ||||
Common equity Tier 1 capital: | 10.30% | 10% | ||||
Tier I capital to average assets (*): | [1] | 9.40% | 9.70% | |||
Minimum Capital Requirement | ||||||
Total capital to risk weighted assets: | $ 3,216,424,000 | $ 2,949,276,000 | ||||
Tier I capital to risk weighted assets: | 2,412,318,000 | 2,211,957,000 | ||||
Common equity Tier 1 capital to risk weighted assets: | 1,809,238,000 | 1,658,968,000 | ||||
Tier I capital to average assets (*): | [1] | $ 1,853,213,000 | $ 1,595,457,000 | |||
Minimum Capital Requirement - Ratios | ||||||
Total capital to risk weighted assets: | 8% | 8% | ||||
Tier I capital to risk weighted assets: | 6% | 6% | ||||
Common equity Tier 1 risk based capital to risk weighted assets: | 4.50% | 4.50% | ||||
Tier I capital to average assets (*): | [1] | 4% | 4% | |||
Minimum To Be Well Capitalized | ||||||
Total capital to risk weighted assets: | $ 4,020,530,000 | $ 3,686,595,000 | ||||
Tier I capital to risk weighted assets: | $ 2,412,318,000 | $ 2,211,957,000 | ||||
Minimum To Be Well Capitalized - Ratios | ||||||
Total capital to risk weighted assets: | 10% | 10% | ||||
Tier I capital to risk weighted assets: | 6% | 6% | ||||
[1] (*) Average assets for the above calculations were based on the most recent quarter. |
Other Income and Expenses (Deta
Other Income and Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other noninterest income: | |||
Interchange and other consumer fees | $ 69,709 | $ 68,022 | $ 57,263 |
Bank-owned life insurance | 15,797 | 21,033 | 18,942 |
Loan swap fees | 7,851 | 5,812 | 5,414 |
SBA loan sales | 3,983 | 7,036 | 12,242 |
Income from other equity investments | 8,732 | 10,605 | 23,109 |
Other noninterest income | 26,886 | 23,456 | 12,824 |
Total other noninterest income | 132,958 | 135,964 | 129,794 |
Other noninterest expense: | |||
Deposit related expenses | 78,757 | 28,972 | 24,003 |
Lending related expenses | 50,109 | 52,700 | 39,578 |
Wealth management related expenses | 2,934 | 2,565 | 1,950 |
Audit, exam and insurance expense | 10,887 | 9,209 | 11,259 |
Administrative and other expenses | 31,812 | 27,375 | 23,169 |
Other noninterest expense | $ 174,499 | $ 120,821 | $ 99,959 |
Parent Company Only Financial_3
Parent Company Only Financial Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investment in unconsolidated subsidiaries: | ||||||||||||||||
Other assets | $ 2,613,139,000 | $ 2,015,441,000 | $ 2,613,139,000 | $ 2,015,441,000 | ||||||||||||
Total assets | 47,959,883,000 | 41,970,021,000 | 47,959,883,000 | 41,970,021,000 | ||||||||||||
Liabilities and Equity [Abstract] | ||||||||||||||||
Subordinated debt and other borrowings | 424,938,000 | 424,055,000 | 424,938,000 | 424,055,000 | ||||||||||||
Other Liabilities | 544,722,000 | 386,512,000 | 544,722,000 | 386,512,000 | ||||||||||||
Stockholders' equity | 6,035,788,000 | 5,519,392,000 | $ 5,310,607,000 | 6,035,788,000 | 5,519,392,000 | $ 5,310,607,000 | $ 4,904,611,000 | |||||||||
Total liabilities and shareholders' equity | 47,959,883,000 | 41,970,021,000 | 47,959,883,000 | 41,970,021,000 | ||||||||||||
Expenses: | ||||||||||||||||
Interest expense | 1,091,250,000 | 244,642,000 | 98,813,000 | |||||||||||||
Personnel expense, including stock compensation | 531,828,000 | 510,175,000 | 436,006,000 | |||||||||||||
Income tax expense (benefit) | 151,854,000 | 136,751,000 | 124,582,000 | |||||||||||||
Net income | 94,979,000 | $ 132,603,000 | $ 197,299,000 | $ 137,271,000 | 137,847,000 | $ 148,658,000 | $ 145,127,000 | $ 129,110,000 | 133,528,000 | $ 136,577,000 | $ 131,790,000 | $ 125,428,000 | 562,152,000 | 560,742,000 | 527,323,000 | |
Preferred stock dividends | 15,192,000 | 15,192,000 | 15,192,000 | |||||||||||||
Net income available to common shareholders | 91,181,000 | 128,805,000 | 193,501,000 | 133,473,000 | 134,049,000 | 144,860,000 | 141,329,000 | 125,312,000 | 129,730,000 | 132,779,000 | 127,992,000 | 121,630,000 | 546,960,000 | 545,550,000 | 512,131,000 | |
CONDENSED STATEMENTS OF CASH FLOWS [Abstract] | ||||||||||||||||
Net income | 94,979,000 | $ 132,603,000 | $ 197,299,000 | 137,271,000 | 137,847,000 | $ 148,658,000 | $ 145,127,000 | 129,110,000 | 133,528,000 | $ 136,577,000 | $ 131,790,000 | 125,428,000 | 562,152,000 | 560,742,000 | 527,323,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation, amortization and accretion | 78,698,000 | 62,298,000 | 53,256,000 | |||||||||||||
Stock-based compensation expense | 41,879,000 | 39,552,000 | 24,952,000 | |||||||||||||
Deferred tax (expense) benefit | 72,368,000 | 19,740,000 | (12,232,000) | |||||||||||||
Income from equity method investment | (85,402,000) | (145,466,000) | (122,274,000) | |||||||||||||
Dividends received from equity method investment | 36,694,000 | 63,114,000 | 69,996,000 | |||||||||||||
Excess tax benefit from stock compensation | 208,000 | 3,027,000 | 2,475,000 | |||||||||||||
(Increase) decrease in other assets | (262,851,000) | (82,436,000) | 73,542,000 | |||||||||||||
Increase (decrease) in other liabilities | 7,944,000 | (26,620,000) | (60,315,000) | |||||||||||||
Net cash provided by operating activities | 478,404,000 | 604,925,000 | 657,444,000 | |||||||||||||
Investing activities: | ||||||||||||||||
Increase in other investments | (92,997,000) | (90,967,000) | (83,830,000) | |||||||||||||
Net cash used in investing activities | (4,602,439,000) | (6,684,439,000) | (3,612,955,000) | |||||||||||||
Financing activities: | ||||||||||||||||
Issuance of common stock pursuant to restricted stock unit agreement, net of shares withheld for taxes | (3,725,000) | (5,462,000) | (3,790,000) | |||||||||||||
Common dividends paid | 68,737,000 | 68,194,000 | 55,504,000 | |||||||||||||
Preferred stock dividends paid | 15,192,000 | 15,192,000 | 15,192,000 | |||||||||||||
Net cash provided by financing activities | 5,177,002,000 | 3,155,357,000 | 3,095,601,000 | |||||||||||||
Investment Income, Dividend | 106,200,000 | 110,800,000 | 99,800,000 | |||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 1,052,967,000 | (2,924,157,000) | 140,090,000 | |||||||||||||
Contribution of Property | 134,700,000 | |||||||||||||||
Parent Company | ||||||||||||||||
Assets [Abstract] | ||||||||||||||||
Cash and cash equivalents | 197,079,000 | 186,572,000 | 184,654,000 | 197,079,000 | 186,572,000 | 184,654,000 | $ 275,888,000 | |||||||||
Investment in unconsolidated subsidiaries: | ||||||||||||||||
Unconsolidated subsidiaries | 3,995,000 | 3,995,000 | 3,995,000 | 3,995,000 | ||||||||||||
Other investments | 67,848,000 | 56,957,000 | 67,848,000 | 56,957,000 | ||||||||||||
Current income tax receivable | 32,466,000 | 33,870,000 | 32,466,000 | 33,870,000 | ||||||||||||
Other assets | 144,597,000 | 57,980,000 | 144,597,000 | 57,980,000 | ||||||||||||
Total assets | 6,586,188,000 | 5,978,420,000 | 6,586,188,000 | 5,978,420,000 | ||||||||||||
Liabilities and Equity [Abstract] | ||||||||||||||||
Subordinated debt and other borrowings | 424,938,000 | 424,055,000 | 424,938,000 | 424,055,000 | ||||||||||||
Other Liabilities | 125,462,000 | 34,973,000 | 125,462,000 | 34,973,000 | ||||||||||||
Stockholders' equity | 6,035,788,000 | 5,519,392,000 | 6,035,788,000 | 5,519,392,000 | ||||||||||||
Total liabilities and shareholders' equity | 6,586,188,000 | 5,978,420,000 | 6,586,188,000 | 5,978,420,000 | ||||||||||||
CONDENSED STATEMENTS OF OPERATIONS [Abstract] | ||||||||||||||||
Income from equity method investment | 0 | 33,817,000 | 33,169,000 | |||||||||||||
Other income (loss) | 12,360,000 | 6,478,000 | 14,945,000 | |||||||||||||
Expenses: | ||||||||||||||||
Interest expense | 23,263,000 | 18,590,000 | 22,903,000 | |||||||||||||
Personnel expense, including stock compensation | 41,879,000 | 39,552,000 | 24,952,000 | |||||||||||||
Other expense | 3,180,000 | 3,025,000 | 2,697,000 | |||||||||||||
Income before income taxes and equity in undistributed income of subsidiaries | 50,991,000 | 90,107,000 | 97,417,000 | |||||||||||||
Income tax expense (benefit) | (13,547,000) | (8,444,000) | (3,088,000) | |||||||||||||
Income before equity in undistributed income of subsidiaries | 64,538,000 | 98,551,000 | 100,505,000 | |||||||||||||
Equity in undistributed income of bank subsidiaries | 496,236,000 | 461,004,000 | 424,978,000 | |||||||||||||
Equity in undistributed income (loss) of nonbank subsidiaries | 1,378,000 | 1,187,000 | 1,840,000 | |||||||||||||
Net income | 562,152,000 | 560,742,000 | 527,323,000 | |||||||||||||
Preferred stock dividends | 15,192,000 | 15,192,000 | 15,192,000 | |||||||||||||
Net income available to common shareholders | 546,960,000 | 545,550,000 | 512,131,000 | |||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS [Abstract] | ||||||||||||||||
Net income | 562,152,000 | 560,742,000 | 527,323,000 | |||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation, amortization and accretion | 883,000 | 882,000 | 1,886,000 | |||||||||||||
Stock-based compensation expense | 41,879,000 | 39,552,000 | 24,952,000 | |||||||||||||
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable | 89,597,000 | 28,281,000 | 0 | |||||||||||||
Deferred tax (expense) benefit | 3,014,000 | 1,760,000 | 2,850,000 | |||||||||||||
Income from equity method investment | 0 | (33,817,000) | (33,169,000) | |||||||||||||
Dividends received from equity method investment | 0 | 10,365,000 | 12,214,000 | |||||||||||||
Excess tax benefit from stock compensation | (208,000) | (3,027,000) | (2,475,000) | |||||||||||||
Gain on other investments, net | (2,088,000) | (2,563,000) | (10,223,000) | |||||||||||||
(Increase) decrease in other assets | (88,227,000) | (32,609,000) | 19,478,000 | |||||||||||||
Increase (decrease) in other liabilities | 1,099,000 | 3,881,000 | 2,032,000 | |||||||||||||
Equity in undistributed (income) loss of bank subsidiaries | (496,236,000) | (461,004,000) | (424,978,000) | |||||||||||||
Equity in undistributed (income) loss of nonbank subsidiaries | (1,378,000) | (1,187,000) | (1,840,000) | |||||||||||||
Net cash provided by operating activities | 110,487,000 | 111,256,000 | 118,050,000 | |||||||||||||
Investing activities: | ||||||||||||||||
Investment in consolidated nonbanking subsidiaries | (10,000,000) | 0 | 0 | |||||||||||||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | 9,691,000 | 0 | 0 | |||||||||||||
Increase in other investments | (8,802,000) | (15,776,000) | (11,668,000) | |||||||||||||
Net cash used in investing activities | (9,111,000) | (15,776,000) | (11,668,000) | |||||||||||||
Financing activities: | ||||||||||||||||
Repayment of other borrowings | 0 | 0 | (120,000,000) | |||||||||||||
Issuance of common stock pursuant to restricted stock unit agreement, net of shares withheld for taxes | (3,725,000) | (5,462,000) | (3,790,000) | |||||||||||||
Exercise of common stock options, net of shares surrendered for taxes | (3,215,000) | (4,714,000) | (3,130,000) | |||||||||||||
Common dividends paid | (68,737,000) | (68,194,000) | (55,504,000) | |||||||||||||
Preferred stock dividends paid | (15,192,000) | (15,192,000) | (15,192,000) | |||||||||||||
Net cash provided by financing activities | (90,869,000) | (93,562,000) | (197,616,000) | |||||||||||||
Cash and cash equivalents, beginning of year | $ 186,572,000 | $ 184,654,000 | $ 275,888,000 | 186,572,000 | 184,654,000 | 275,888,000 | ||||||||||
Cash and cash equivalents, end of year | 197,079,000 | 186,572,000 | $ 184,654,000 | 197,079,000 | 186,572,000 | 184,654,000 | ||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 10,507,000 | 1,918,000 | $ (91,234,000) | |||||||||||||
Banking | ||||||||||||||||
Assets [Abstract] | ||||||||||||||||
Investments in consolidated subsidiaries | 6,126,172,000 | 5,626,844,000 | $ 6,126,172,000 | $ 5,626,844,000 | ||||||||||||
Financing activities: | ||||||||||||||||
Revenues | Pinnacle Bank | Pinnacle Bank | Pinnacle Bank | |||||||||||||
Nonbank subsidiaries | ||||||||||||||||
Assets [Abstract] | ||||||||||||||||
Investments in consolidated subsidiaries | $ 14,031,000 | $ 12,202,000 | $ 14,031,000 | $ 12,202,000 | ||||||||||||
Financing activities: | ||||||||||||||||
Revenues | Pinnacle Bank | Pinnacle Bank | Pinnacle Bank |
Quarterly Financial Results (_3
Quarterly Financial Results (unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Interest income | $ 644,796,000 | $ 627,294,000 | $ 575,239,000 | $ 506,039,000 | $ 451,178,000 | $ 371,764,000 | $ 292,376,000 | $ 258,617,000 | $ 259,193,000 | $ 260,868,000 | $ 259,236,000 | $ 251,917,000 | $ 2,353,368,000 | $ 1,373,935,000 | $ 1,031,214,000 |
Net interest income | 317,252,000 | 317,242,000 | 315,393,000 | 312,231,000 | 319,460,000 | 305,784,000 | 264,574,000 | 239,475,000 | 238,763,000 | 237,543,000 | 233,225,000 | 222,870,000 | 1,262,118,000 | 1,129,293,000 | 932,401,000 |
Provision for credit losses | 16,314,000 | 26,826,000 | 31,689,000 | 18,767,000 | 24,805,000 | 27,493,000 | 12,907,000 | 2,720,000 | 2,675,000 | 3,382,000 | 2,834,000 | 7,235,000 | 93,596,000 | 67,925,000 | 16,126,000 |
Income before income taxes | 128,858,000 | 167,980,000 | 245,902,000 | 171,266,000 | 174,929,000 | 183,843,000 | 181,131,000 | 157,590,000 | 166,394,000 | 169,405,000 | 162,458,000 | 153,648,000 | 714,006,000 | 697,493,000 | 651,905,000 |
Net income | 94,979,000 | 132,603,000 | 197,299,000 | 137,271,000 | 137,847,000 | 148,658,000 | 145,127,000 | 129,110,000 | 133,528,000 | 136,577,000 | 131,790,000 | 125,428,000 | 562,152,000 | 560,742,000 | 527,323,000 |
Net income available to common shareholders | $ 91,181,000 | $ 128,805,000 | $ 193,501,000 | $ 133,473,000 | $ 134,049,000 | $ 144,860,000 | $ 141,329,000 | $ 125,312,000 | $ 129,730,000 | $ 132,779,000 | $ 127,992,000 | $ 121,630,000 | $ 546,960,000 | $ 545,550,000 | $ 512,131,000 |
Basic net income per common share (in dollars per share) | $ 1.20 | $ 1.69 | $ 2.55 | $ 1.76 | $ 1.77 | $ 1.91 | $ 1.87 | $ 1.66 | $ 1.72 | $ 1.76 | $ 1.70 | $ 1.61 | $ 7.20 | $ 7.20 | $ 6.79 |
Diluted net income per common share (in dollars per share) | $ 1.19 | $ 1.69 | $ 2.54 | $ 1.76 | $ 1.76 | $ 1.91 | $ 1.86 | $ 1.65 | $ 1.71 | $ 1.75 | $ 1.69 | $ 1.61 | $ 7.14 | $ 7.17 | $ 6.75 |