Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 21, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'PINNACLE FINANCIAL PARTNERS INC | ' | ' |
Entity Central Index Key | '0001115055 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $846,311,085 |
Entity Common Stock, Shares Outstanding | ' | 35,336,340 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash and noninterest-bearing due from banks | $79,785,004 | $51,946,542 |
Interest-bearing due from banks | 124,509,486 | 111,535,083 |
Federal funds sold and other | 4,644,247 | 1,807,044 |
Cash and cash equivalents | 208,938,737 | 165,288,669 |
Securities available-for-sale, at fair value | 693,456,314 | 706,577,806 |
Securities held-to-maturity (fair value of $36,146,818 and $583,212 at December 31, 2013 and December 31, 2012, respectively) | 39,795,649 | 574,863 |
Mortgage loans held-for-sale | 12,850,339 | 41,194,639 |
Loans | 4,144,493,486 | 3,712,162,430 |
Less allowance for loan losses | -67,969,693 | -69,417,437 |
Loans, net | 4,076,523,793 | 3,642,744,993 |
Premises and equipment, net | 72,649,574 | 75,804,895 |
Other investments | 33,226,195 | 26,962,890 |
Accrued interest receivable | 15,406,389 | 14,856,615 |
Goodwill | 243,651,006 | 244,040,421 |
Core deposits and other intangible assets | 3,840,750 | 5,103,273 |
Other real estate owned | 15,226,136 | 18,580,097 |
Other assets | 148,210,975 | 98,819,455 |
Total assets | 5,563,775,857 | 5,040,548,616 |
Deposits: | ' | ' |
Non-interest-bearing | 1,167,414,487 | 985,689,460 |
Interest-bearing | 884,294,802 | 760,786,247 |
Savings and money market accounts | 1,962,714,398 | 1,662,256,403 |
Time | 519,049,037 | 606,455,873 |
Total deposits | 4,533,472,724 | 4,015,187,983 |
Securities sold under agreements to repurchase | 70,465,326 | 114,667,475 |
Federal Home Loan Bank advances | 90,637,328 | 75,850,390 |
Subordinated debt and other borrowings | 98,658,292 | 106,158,292 |
Accrued interest payable | 792,703 | 1,360,598 |
Other liabilities | 46,041,823 | 48,252,519 |
Total liabilities | 4,840,068,196 | 4,361,477,257 |
Stockholders' equity: | ' | ' |
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding at December 31, 2013 and 2012, respectively | 0 | 0 |
Common stock, par value $1.00; 90,000,000 shares authorized; 35,221,941 and 34,696,597 issued and outstanding at December 31, 2013 and 2012, respectively | 35,221,941 | 34,696,597 |
Common stock warrants | 0 | 0 |
Additional paid-in capital | 550,212,135 | 543,760,439 |
Retained earnings | 142,298,199 | 87,386,689 |
Accumulated other comprehensive income, net of taxes | -4,024,614 | 13,227,634 |
Total stockholders' equity | 723,707,661 | 679,071,359 |
Total liabilities and stockholders' equity | $5,563,775,857 | $5,040,548,616 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Securities held-to-maturity, fair value | $38,817,467 | $583,212 |
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) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, shares issued (in shares) | 35,221,941 | 34,696,597 |
Common stock, shares outstanding (in shares) | 35,221,941 | 34,696,597 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Interest income: | ' | ' | ' |
Loans, including fees | $169,252,739 | $160,036,709 | $154,748,491 |
Securities: | ' | ' | ' |
Taxable | 14,504,464 | 16,931,417 | 23,971,787 |
Tax-exempt | 6,378,345 | 6,576,701 | 7,394,134 |
Federal funds sold and other | 1,146,867 | 1,876,731 | 2,232,423 |
Total interest income | 191,282,415 | 185,421,558 | 188,346,835 |
Interest expense: | ' | ' | ' |
Deposits | 11,721,387 | 16,842,852 | 30,588,033 |
Securities sold under agreements to repurchase | 238,775 | 455,499 | 1,110,078 |
Federal Home Loan Bank advances and other borrowings | 3,423,617 | 5,258,749 | 5,184,313 |
Total interest expense | 15,383,779 | 22,557,100 | 36,882,424 |
Net interest income | 175,898,636 | 162,864,458 | 151,464,411 |
Provision for loan losses | 7,856,522 | 5,568,830 | 21,797,613 |
Net interest income after provision for loan losses | 168,042,114 | 157,295,628 | 129,666,798 |
Noninterest income: | ' | ' | ' |
Service charges on deposit accounts | 10,557,528 | 9,917,754 | 9,244,165 |
Investment services | 8,038,425 | 6,984,970 | 6,246,414 |
Insurance sales commissions | 4,537,150 | 4,461,404 | 3,999,153 |
Trust fees | 3,747,241 | 3,195,950 | 2,999,731 |
Gains on mortgage loans sold, net | 6,243,411 | 6,698,618 | 4,155,137 |
Gain on sale of investment securities, net | -1,466,475 | 2,150,605 | 960,763 |
Other noninterest income | 15,446,298 | 9,987,335 | 10,334,847 |
Total noninterest income | 47,103,578 | 43,396,636 | 37,940,210 |
Noninterest expense: | ' | ' | ' |
Salaries and employee benefits | 82,646,967 | 78,056,564 | 74,424,851 |
Equipment and occupancy | 21,273,454 | 20,420,333 | 19,986,976 |
Other real estate expense | 3,113,046 | 11,544,067 | 17,431,926 |
Marketing and other business development | 3,638,941 | 3,635,810 | 3,303,151 |
Postage and supplies | 2,249,950 | 2,379,730 | 2,120,722 |
Amortization of intangibles | 1,262,524 | 2,738,994 | 2,862,837 |
Other noninterest expense | 15,076,332 | 19,389,368 | 18,976,865 |
Total noninterest expense | 129,261,214 | 138,164,866 | 139,107,328 |
Income (loss) before income taxes | 85,884,478 | 62,527,398 | 28,499,680 |
Income tax expense (benefit) | 28,158,277 | 20,643,517 | -15,237,687 |
Net income (loss) | 57,726,201 | 41,883,881 | 43,737,367 |
Preferred stock dividends | 0 | 1,660,868 | 4,606,493 |
Accretion on preferred stock discount | 0 | 2,153,172 | 2,058,146 |
Net income (loss) available to common stockholders | $57,726,201 | $38,069,841 | $37,072,728 |
Per share information: | ' | ' | ' |
Basic net income (loss) per common share available to common stockholders (in dollars per share) | $1.69 | $1.12 | $1.11 |
Diluted net income (loss) per common share available to common stockholders (in dollars per share) | $1.67 | $1.10 | $1.09 |
Weighted average common shares outstanding: | ' | ' | ' |
Basic (in shares) | 34,200,770 | 33,899,667 | 33,420,015 |
Diluted (in shares) | 34,509,261 | 34,487,808 | 34,060,228 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | ' | ' | ' |
Net income (loss): | $57,726,201 | $41,883,881 | $43,737,367 |
Other comprehensive income, net of tax: | ' | ' | ' |
(Decrease) increase in net gains on securities available-for-sale, net of deferred tax expense (benefit) | -22,156,995 | -2,798,700 | 12,292,513 |
(Decrease) increase in fair value of cash flow hedge, net of tax expense | 4,013,570 | 0 | 0 |
Net gain on sale of investment securities reclassified out of comprehensive income into net income, net of tax | 891,177 | -1,306,923 | -583,856 |
Total comprehensive income (loss) | $40,473,953 | $37,778,258 | $55,446,024 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Preferred Stock [Member] | Common Stock [Member] | Common Stock Warrants [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balances at Dec. 31, 2010 | $90,788,682 | $33,870,380 | $3,348,402 | $530,829,019 | $12,996,202 | $5,624,600 | $677,457,285 |
Balances (in shares) at Dec. 31, 2010 | ' | 33,870,380 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Exercise of employee common stock options, stock appreciation rights, common stock warrants and related tax benefits | 0 | 163,829 | 0 | 1,014,653 | 0 | 0 | 1,178,482 |
Exercise of employee common stock options, stock appreciation rights, common stock warrants and related tax benefits (in shares) | ' | 163,829 | ' | ' | ' | ' | ' |
Repurchase of preferred stock | -23,750,000 | 0 | 0 | 0 | 0 | 0 | -23,750,000 |
Issuance of restricted common shares, net of forfeitures | 0 | 299,715 | 0 | -299,715 | 0 | 0 | 0 |
Issuance of restricted common shares, net of forfeitures (in shares) | ' | 299,715 | ' | ' | ' | ' | ' |
Issuance of salary stock units | 0 | 54,526 | 0 | 722,292 | 0 | 0 | 776,818 |
Issuance of salary stock units (in shares) | ' | 54,526 | ' | ' | ' | ' | ' |
Restricted shares withheld for taxes | 0 | -33,490 | 0 | -474,448 | 0 | 0 | -507,938 |
Restricted shares withheld for taxes (in shares) | ' | -33,490 | ' | ' | ' | ' | ' |
Compensation expense for restricted shares | 0 | 0 | 0 | 3,239,677 | 0 | 0 | 3,239,677 |
Compensation expense for stock options | 0 | 0 | 0 | 1,196,059 | 0 | 0 | 1,196,059 |
Common dividends paid | ' | ' | ' | ' | ' | ' | 0 |
Accretion on preferred stock discount | 2,058,146 | 0 | 0 | 0 | -2,058,146 | 0 | 0 |
Preferred dividends paid | 0 | 0 | 0 | 0 | -4,891,839 | 0 | -4,891,839 |
Net income (loss) | ' | 0 | 0 | 0 | 43,737,367 | 0 | 43,737,367 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | 11,708,657 | 11,708,657 |
Ending Balances at Dec. 31, 2011 | 69,096,828 | 34,354,960 | 3,348,402 | 536,227,537 | 49,783,584 | 17,333,257 | 710,144,568 |
Balances (in shares) at Dec. 31, 2011 | ' | 34,354,960 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Exercise of employee common stock options, stock appreciation rights, common stock warrants and related tax benefits | 0 | 245,229 | 0 | 1,455,969 | 0 | 0 | 1,701,198 |
Exercise of employee common stock options, stock appreciation rights, common stock warrants and related tax benefits (in shares) | ' | 245,229 | ' | ' | ' | ' | ' |
Repurchase of preferred stock | -71,250,000 | 0 | 0 | 0 | 0 | 0 | -71,250,000 |
Issuance of restricted common shares, net of forfeitures | 0 | 102,119 | 0 | -102,119 | 0 | 0 | 0 |
Issuance of restricted common shares, net of forfeitures (in shares) | ' | 102,119 | ' | ' | ' | ' | ' |
Issuance of salary stock units | 0 | 57,508 | ' | 942,565 | ' | ' | 1,000,073 |
Issuance of salary stock units (in shares) | ' | 57,508 | ' | ' | ' | ' | ' |
Restricted shares withheld for taxes | 0 | -63,219 | 0 | -1,021,409 | 0 | 0 | -1,084,628 |
Restricted shares withheld for taxes (in shares) | ' | -63,219 | ' | ' | ' | ' | ' |
Compensation expense for restricted shares | 0 | 0 | 0 | 3,270,028 | 0 | 0 | 3,270,028 |
Compensation expense for stock options | 0 | 0 | 0 | 394,466 | 0 | 0 | 394,466 |
Common dividends paid | ' | ' | ' | ' | ' | ' | 0 |
Cancellation of outstanding warrants | 0 | 0 | -3,348,402 | 2,593,402 | 0 | 0 | -755,000 |
Accretion on preferred stock discount | 2,153,172 | 0 | 0 | 0 | -2,153,172 | 0 | 0 |
Preferred dividends paid | 0 | 0 | 0 | 0 | -2,127,604 | 0 | -2,127,604 |
Net income (loss) | ' | ' | ' | ' | 41,883,881 | ' | 41,883,881 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | -4,105,623 | -4,105,623 |
Ending Balances at Dec. 31, 2012 | 0 | 34,696,597 | 0 | 543,760,439 | 87,386,689 | 13,227,634 | 679,071,359 |
Balances (in shares) at Dec. 31, 2012 | ' | 34,696,597 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Exercise of employee common stock options, stock appreciation rights, common stock warrants and related tax benefits | 0 | 280,008 | 0 | 3,961,042 | 0 | 0 | 4,241,050 |
Exercise of employee common stock options, stock appreciation rights, common stock warrants and related tax benefits (in shares) | ' | 280,008 | ' | ' | ' | ' | ' |
Issuance of restricted common shares, net of forfeitures | 0 | 303,111 | 0 | -303,111 | 0 | 0 | 0 |
Issuance of restricted common shares, net of forfeitures (in shares) | ' | 303,111 | ' | ' | ' | ' | ' |
Restricted shares withheld for taxes | 0 | -57,775 | 0 | -1,288,367 | 0 | 0 | -1,346,142 |
Restricted shares withheld for taxes (in shares) | ' | -57,775 | ' | ' | ' | ' | ' |
Compensation expense for restricted shares | 0 | 0 | 0 | 4,069,662 | 0 | 0 | 4,069,662 |
Compensation expense for stock options | 0 | 0 | 0 | 12,470 | 0 | 0 | 12,470 |
Common dividends paid | 0 | 0 | 0 | 0 | -2,814,691 | 0 | -2,814,691 |
Net income (loss) | ' | ' | ' | ' | 57,726,201 | ' | 57,726,201 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | -17,252,248 | -17,252,248 |
Ending Balances at Dec. 31, 2013 | $0 | $35,221,941 | $0 | $550,212,135 | $142,298,199 | ($4,024,614) | $723,707,661 |
Balances (in shares) at Dec. 31, 2013 | ' | 35,221,941 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating activities: | ' | ' | ' |
Net income (loss) | $57,726,201 | $41,883,881 | $43,737,367 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Net amortization/accretion of premium/discount on securities | 4,438,303 | 7,291,775 | 7,702,123 |
Depreciation and amortization | 9,245,876 | 10,207,638 | 10,950,434 |
Provision for loan losses | 7,856,522 | 5,568,830 | 21,797,613 |
Gains on sales of investment securities, net | 1,466,475 | -2,150,605 | -960,763 |
Gain on mortgage loans sold, net | -6,243,411 | -6,698,618 | -4,155,137 |
Stock-based compensation expense | 4,082,132 | 4,414,452 | 5,018,294 |
Deferred tax expense (benefit) | 1,841,044 | 1,547,626 | -23,395,052 |
Losses on disposition of other real estate and other investments | 3,103,008 | 9,608,358 | 14,081,857 |
Excess tax benefit from stock compensation | -389,415 | -36,071 | -13,819 |
Mortgage loans held for sale: | ' | ' | ' |
Loans originated | -385,173,288 | -486,930,709 | -394,020,876 |
Loans sold | 419,761,000 | 487,798,601 | 378,996,474 |
Decrease in other assets | 11,567,952 | 36,400,237 | 42,346,579 |
Increase in other liabilities | -2,847,047 | 5,372,270 | 11,004,661 |
Net cash provided by operating activities | 126,435,352 | 114,277,665 | 113,089,755 |
Activities in available-for-sale securities: | ' | ' | ' |
Purchases | -233,887,505 | -222,831,813 | -268,141,975 |
Sales | 23,439,144 | 188,586,154 | 166,415,738 |
Maturities, prepayments and calls | 143,322,733 | 210,732,980 | 233,622,196 |
Activities in held-to-maturity securities: | ' | ' | ' |
Purchases | -3,496,186 | 0 | 0 |
Sales | 0 | 0 | 0 |
Maturities, prepayments and calls | 3,623,800 | 1,755,000 | 1,975,000 |
(Increase) decrease in loans, net | -447,907,395 | -440,508,548 | -144,581,478 |
Purchases of premises and equipment and software | -5,293,919 | -5,864,452 | -2,031,265 |
Purchase of bank owned life insurance | -38,352,344 | 0 | 0 |
Decrease (increase) in other investments | -6,141,232 | 17,743,227 | -407,504 |
Net cash (used in) provided by investing activities | -564,692,904 | -250,387,452 | -13,149,288 |
Financing activities: | ' | ' | ' |
Net increase (decrease) in deposits | 518,284,740 | 360,848,517 | -178,660,721 |
Net (decrease) increase in repurchase agreements | -44,202,149 | -16,923,937 | -14,702,967 |
Advances from Federal Home Loan Bank: | ' | ' | ' |
Issuances | 600,000,000 | 520,000,000 | 215,000,000 |
Payments | -585,144,603 | -670,141,606 | -110,236,705 |
Net increase in other borrowings | -7,500,000 | 8,682,292 | 0 |
(Repurchase) exercise of common stock warrants | 0 | -755,000 | 0 |
Exercise of common stock options and stock appreciation rights | 2,894,908 | 866,683 | 864,805 |
Excess tax benefit from stock compensation | 389,415 | 36,071 | 13,819 |
Preferred dividends paid | 0 | -2,127,604 | -4,891,839 |
Common dividends paid | -2,814,691 | 0 | 0 |
Repurchase of preferred shares outstanding | 0 | -71,250,000 | -23,750,000 |
Net cash provided by (used in) financing activities | 481,907,620 | 129,235,416 | -116,363,608 |
Net (decrease) increase in cash and cash equivalents | 43,650,068 | -6,874,371 | -16,423,141 |
Cash and cash equivalents, beginning of year | 165,288,669 | 172,163,040 | 188,586,181 |
Cash and cash equivalents, end of year | $208,938,737 | $165,288,669 | $172,163,040 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
Note 1. Summary of Significant Accounting Policies | |||||||||||||
Nature of Business — Pinnacle Financial Partners, Inc. (Pinnacle Financial) is a bank holding company whose primary business is conducted by its wholly-owned subsidiary, Pinnacle Bank (Pinnacle Bank). Pinnacle Bank is a commercial bank headquartered in Nashville, Tennessee. Pinnacle Bank provides a full range of banking services, including investment, mortgage, and insurance services, and comprehensive wealth management services, in its primary market areas of the Nashville-Davidson-Murfreesboro-Franklin, Tennessee and Knoxville, Tennessee Metropolitan Statistical Areas. | |||||||||||||
Basis of Presentation — These consolidated financial statements include the accounts of Pinnacle Financial and its wholly-owned subsidiaries. PNFP Statutory Trust I, PNFP Statutory Trust II, PNFP Statutory Trust III, and PNFP Statutory Trust IV are affiliates of Pinnacle Financial and 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 loan losses, determination of any impairment of intangible assets, the valuation of other real estate owned and the valuation of deferred tax assets. | |||||||||||||
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 has $3.8 million and $5.1 million of long-lived amortizing intangibles at December 31, 2013 and 2012, respectively. | |||||||||||||
Goodwill is evaluated for impairment at least annually and more frequently if events and circumstances indicate that the asset might be impaired. That annual assessment date for Pinnacle Financial is September 30. An impairment loss is recognized to the extent that the carrying amount exceeds fair value. | |||||||||||||
The Accounting Standards Codification (ASC) 350, Goodwill and Other, regarding testing goodwill for impairment 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 does a qualitative assessment and determines that this is the case, or if a qualitative assessment is not performed, it is required to perform additional goodwill impairment testing to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit (if any). Based on a qualitative assessment, if an entity determines that the fair value of a reporting unit is more than its carrying amount, the two-step goodwill impairment test is not required. Pinnacle Financial performed our annual assessment as of September 30, 2013. The results of the qualitative assessment indicated that the fair value of Pinnacle Financial's reporting unit was more than its carrying value, and accordingly, the two-step goodwill impairment test was not performed. | |||||||||||||
Should Pinnacle Financial's common stock price decline 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. Pinnacle Financial has $243.7 million of goodwill related to the acquisition of Cavalry Bancorp, Inc. and Mid America Bancshares, Inc. in 2006 and 2007, respectively. | |||||||||||||
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, 2013 as follows: | |||||||||||||
For the years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash Payments: | |||||||||||||
Interest | $ | 16,020,132 | $ | 23,506,632 | $ | 39,991,746 | |||||||
Income taxes paid | 27,150,000 | 10,249,106 | 3,988,414 | ||||||||||
Noncash Transactions: | |||||||||||||
Loans charged-off to the allowance for loan losses | 17,252,736 | 19,657,061 | 34,849,910 | ||||||||||
Loans foreclosed upon with repossessions transferred to other real estate | 4,630,251 | 9,052,792 | 34,580,351 | ||||||||||
Available-for-sale securities transferred to held-to-maturity portfolio | 39,959,647 | - | - | ||||||||||
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. | |||||||||||||
Other-than-temporary Impairment — A decline in the fair value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in a reduction in the carrying amount of the security. To determine whether impairment is other-than-temporary, management considers whether the entity expects to recover the entire amortized cost basis of the security by reviewing the present value of the future cash flows associated with the security. The shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is referred to as a credit loss and is deemed to be other-than-temporary impairment. If a credit loss is identified, the credit loss is recognized as a charge to earnings and a new cost basis for the security is established. If management concludes that a decline in fair value of a security is temporary and, a full recovery of principal and interest is expected and it is not more-likely-than-not that it will be required to sell the security before recovery of their amortized cost basis, then the security is not other-than-temporarily impaired and the shortfall is recorded as a component of equity. | |||||||||||||
Periodically, available-for-sale securities may be sold or the composition of the portfolio realigned to improve yields, quality or marketability, or to implement changes in investment or asset/liability strategy, including maintaining collateral requirements and raising funds for liquidity purposes. Additionally, if an available-for-sale security loses its investment grade, 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. Resultantly, other-than-temporary charges may be incurred as management's intention related to a particular security changes. | |||||||||||||
The carrying values of Pinnacle Financial's investment securities could decline in the future if the financial condition of issuers deteriorates and management determines it is probable that Pinnacle Financial will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future. There is also a risk that other-than-temporary impairment charges may occur in the future if management's intention to hold these securities to maturity and or recovery changes. | |||||||||||||
Mortgage loans held-for-sale — Mortgage 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 operations in gains on mortgage loans sold, net of related costs such as compensation expenses. Pinnacle Financial does not securitize mortgage loans and does not retain the servicing for loans sold. | |||||||||||||
Loans — Pinnacle Financial has five loan segments for financial reporting purposes: commercial, commercial real estate, construction and development, consumer and consumer real estate. 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 the allowance for loan losses 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, 2013 and 2012, net deferred loan fees of $993,000 and $1,000,000 respectively, were included in 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-impaired or doubtful-impaired. Pinnacle Financial believes that our categories follow those outlined by Pinnacle Bank's primary federal regulator. At December 31, 2013, approximately 74% of our loan portfolio was assigned a specifically assigned risk rating in the allowance for loan loss assessment. 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 homogenous 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. | |||||||||||||
All loans that are placed on nonaccrual status are further analyzed to determine if they should be classified as impaired loans. At December 31, 2013, there were no loans classified as nonaccrual that were not also deemed to be impaired. A loan is considered to be impaired when it is probable Pinnacle Financial will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan. This determination is made using a variety of techniques, which include a review of the borrower's financial condition, debt-service coverage ratios, global cash flow analysis, guarantor support, other loan file information, meetings with borrowers, inspection or reappraisal of collateral and/or consultation with legal counsel as well as results of reviews of other similar industry credits (e.g. builder loans, development loans, church loans, etc.). | |||||||||||||
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. | |||||||||||||
Allowance for Loan Losses — The allowance for loan losses is maintained at a level that management believes to be adequate to absorb probable losses inherent in the loan portfolio as of the balance sheet date. Loan losses are charged against the allowance when they are known. Subsequent recoveries are credited to the allowance. Management's determination of the adequacy of the allowance is based on an evaluation of the portfolio, current economic conditions, volume, growth, composition of the loan portfolio, homogeneous pools of loans, risk ratings of specific loans, internal and external historical loss experience, identified impaired loans and other factors related to the portfolio. This evaluation is performed quarterly and is inherently subjective, as it requires material estimates that are susceptible to significant change including the amounts and timing of future cash flows expected to be received on any impaired loans. | |||||||||||||
In assessing the adequacy of the allowance, we also consider the results of our ongoing independent loan review process. We undertake this process both to ascertain whether there are loans in the portfolio whose credit quality has weakened over time and to assist in our overall evaluation of the risk characteristics of the entire loan portfolio. Our loan review process includes the judgment of management, independent loan reviewers, and reviews that may have been conducted by third-party reviewers. We incorporate relevant loan review results in the loan impairment determination. In addition, regulatory agencies, as an integral part of their examination process, will periodically review Pinnacle Financial's allowance for loan losses and may require Pinnacle Financial to record adjustments to the allowance based on their judgment about information available to them at the time of their examinations. Each risk rating is also subject to review by our independent loan review department. Currently, our independent loan review department targets reviews of a significant portion of our risk rated portfolio annually. Included in the coverage are independent loan reviews of loans in targeted higher-risk portfolio segments such as certain commercial and industrial loans, land loans, loans assigned to a particular lending officer and/or loan types in certain geographies. | |||||||||||||
In addition to the independent loan review process, the aforementioned risk ratings are subject to continual review by the loan officer to determine that the appropriate risk ratings are being utilized in our allowance for loan loss process. At least annually, and in many cases twice per year, our credit policy requires that each risk-rated loan is subject to a formal credit risk review to be performed by the responsible financial advisor. | |||||||||||||
All of the above factors are utilized in the determination of the allowance for loan losses which is composed of the results of two distinct impairment analyses pursuant to the provisions of both ASC 450-20 and ASC 310-10-35 as discussed below. | |||||||||||||
ASC 450-20, Loss Contingencies — The ASC 450-20 component of the allowance for loan losses begins with a process of estimating the probable losses based on our internal system of risk ratings and historical loss data for Pinnacle Bank's risk rated portfolio. Prior to 2010, because of limited loss history, loss estimates were primarily derived from historical loss data by loan categories for comparable peer institutions. During 2010, Pinnacle Bank incorporated the results of its own historical migration analysis of all loans that were charged-off during the prior eight quarters going back to the second quarter of 2009. Subsequently, Pinnacle Bank increased its look-back period each quarter to include the most recent quarter's loss history for a total of 19 quarters as of December 31, 2013. Pinnacle Bank will continue to increase its look-back period to incorporate twenty quarters of loss history in 2014. In this current economic environment, we believe the extension of our look-back period in our migration analysis has been appropriate due to the risks inherent in our loan portfolio. Absent the previous extensions to Pinnacle Bank's look-back period, the early cycle periods in which we experienced significant losses would have been excluded from the determination of the allowance for loan losses as of December 31, 2013. | |||||||||||||
This migration analysis assists in evaluating loan loss allocation rates for the various risk grades assigned to loans in the portfolio. The results of the migration analysis are then compared to other industry factors to determine the loss allocation rates for the risk rated loan portfolios. The loss allocation rates from the migration analysis and the industry loss factors are annually weighted 75% to 25%, respectively, to determine a weighted average loss allocation rate for these portfolios. | |||||||||||||
The allowance allocation for non risk-rated portfolios is based on consideration of actual internal historical loss rates and industry loss rates for those particular segments. Non risk-rated loans are evaluated as a group by category rather than on an individual loan basis because these loans are smaller and homogeneous. The internally and externally-based allocation methodologies for the non risk-rated loan portfolio are weighted to determine a weighted average loss allocation rate for these portfolios. | |||||||||||||
The estimated loan loss allocation for all loan segments is then adjusted for management's estimate of probable losses for several environmental factors. The allocation for environmental factors is particularly subjective and does not lend itself to exact mathematical calculation. This amount represents estimated probable inherent credit losses which exist, but have not yet been identified, as of the balance sheet date, and is based upon quarterly trend assessments in delinquent and nonaccrual loans, unanticipated charge-offs, credit concentration changes, prevailing economic conditions, changes in lending personnel experience, changes in lending policies or procedures and other influencing factors. These environmental factors are considered for each of the five loan segments, and the allowance allocation, as determined by the processes noted above for each segment, is increased or decreased based on the incremental assessment of these various environmental factors. The environmental factors accounted for approximately 19.9% of the allocated allowance for loan losses under ASC 450-20 at December 31, 2013 compared to 18.6% at December 31, 2012. | |||||||||||||
The ASC 450-20 portion of the allowance also includes an unallocated component. We believe that the unallocated amount is warranted for inherent factors that cannot be practically assigned to individual loan categories, such as the imprecision in the overall loss allocation measurement process, the volatility of the local economies in the markets we serve and imprecision in our credit risk ratings process. | |||||||||||||
ASC 310-10-35, Receivables — The ASC 310-10-35 component of the allowance for loan loss is the allowance for nonaccrual loans and troubled debt restructurings. Generally, loans with an identified weakness and principal balance of $250,000 or more are subject to an individual determination of the amount of impairment that exists for a particular loan. The amount of the impairment is measured based on the present value of expected payments using the loan's original effective rate as the discount rate, the loan's observable market price, or the fair value of the collateral if the loan is collateral dependent. If the recorded investment in the impaired loan exceeds the measure of fair value, a specific valuation allowance is established as a component of the allowance for loan losses or, in the case of collateral dependent loans or any loan with a confirming event, the excess is charged off. Changes to the valuation allowance are recorded as a component of the provision for loan losses. Any subsequent adjustments to present value calculations for impaired loan valuations as a result of the passage of time, such as changes in the anticipated payback period for repayment, are recorded as a component of the provision for loan losses. | |||||||||||||
For nonaccrual loans and troubled debt restructurings less than $250,000, Pinnacle Financial assigns a valuation allowance to these loans utilizing an allocation rate equal to the allocation rate calculated for loans of a similar type greater than $250,000. In addition, Pinnacle Financial reviews impaired collateral dependent loans less than $250,000 to determine if any amounts should be charged-off pursuant to regulatory requirements. At December 31, 2013, the principal balance of these small impaired loans was $5.8 million, which represented 15.2% of all impaired loans. At December 31, 2012, the principal balance of these small impaired loans was $5.0 million, which represented 9.9% of all impaired loans. | |||||||||||||
Recently Adopted Accounting Pronouncements — In February 2013, the FASB issued Accounting Standards Update 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" which provides disclosure guidance on amounts reclassified out of AOCI by component. The adoption did not have any impact on our financial position or results of operations but has impacted our financial statement disclosure. As shown on the statement of comprehensive income for the years ended December 31, 2013, 2012 and 2011, Pinnacle Financial reclassified approximately $891,000 of net losses, and net gains of $1.3 million and $584,000 out of other comprehensive income into investment gains (losses) on sales and impairments, net of tax. | |||||||||||||
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 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 and thirty years. | |||||||||||||
Pinnacle Bank is the lessee with respect to several office locations. All such leases are being accounted for as operating leases within the accompanying consolidated financial statements. Several of these leases include rent escalation clauses. Pinnacle Bank expenses the costs associated with these escalating payments over the life of the expected lease term using the straight-line method. At December 31, 2013, the deferred liability associated with these escalating rentals was approximately $2,234,000 and is included in other liabilities in the accompanying consolidated balance sheets. | |||||||||||||
Other Investments — 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. At December 31, 2013 and 2012, the cost of these investments was $16,103,000 and $14,176,000, respectively. Pinnacle Financial determined that cost approximates the fair value of these investments. Additionally, Pinnacle Financial has recorded certain other equity investments in other entities, at fair value, of $6,701,000 and $4,214,000 at December 31, 2013 and 2012, respectively. During 2013 and 2012, Pinnacle Financial recorded net gains of $122,000 and net losses of $70,000, respectively, due to changes in the fair value of these investments. As more fully described in footnote 10, Pinnacle Financial has an investment in four Trusts valued at $2,476,000 as of December 31, 2013 and 2012. The 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 Trusts. Also, as part of our compliance with the Community Reinvestment Act, we had investments in low income housing entities totaling $7,945,000 and $6,096,000, net, as of December 31, 2013 and 2012, respectively. These investments are reflected in the accompanying consolidated balance sheets in other investments. | |||||||||||||
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. 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 adequate collateral. Upon its acquisition by Pinnacle Bank, 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. The difference from the loan balance is recognized as a charge-off through the allowance for loan 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 income or noninterest expense, as applicable. | |||||||||||||
Included in the accompanying consolidated balance sheet at December 31, 2013 is $20,913,000 of OREO with related property-specific valuation allowances of $5,687,000. At December 31, 2012, OREO totaled $26,793,000 with related property-specific valuation allowances of $8,213,000. During the years ended December 31, 2013, 2012 and 2011, Pinnacle Financial incurred $3,113,000, $11,544,000, and $17,432,000, respectively, of foreclosed real estate expense, of which $2,014,000, $9,470,000, and $12,806,000 were realized losses on dispositions and holding losses on valuations of OREO properties during 2013, 2012 and 2011, respectively. | |||||||||||||
Other Assets — Included in other assets as of December 31, 2013 and 2012, is approximately $2,748,000 and $1,336,000, 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 to seven years. For the years ended December 31, 2013, 2012, and 2011, Pinnacle Financial's amortization expense was approximately $937,000, $901,000, and $818,000, respectively. Software maintenance fees are capitalized in other assets and amortized over the term of the maintenance agreement. | |||||||||||||
Pinnacle Bank is the owner and beneficiary of various life insurance policies on certain key executives and certain directors, including policies that were acquired in its merger with Cavalry. Collectively, these policies are reflected in other assets in the accompanying consolidated balance sheets at their respective cash surrender values. At December 31, 2013 and 2012, the aggregate cash surrender value of these policies was $90,271,000 and $49,802,000, respectively. Noninterest income related to these policies was $2,116,000, $919,000, and $1,159,000, during the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
In November 2009, the FDIC issued a rule that required all insured depository institutions, with limited exceptions, to prepay their estimated quarterly risk-based assessments for the fourth quarter of 2009 and for all of 2011, 2012 and 2013. At December 31, 2012, Pinnacle Financial had approximately $4.1 million in pre-paid deposit insurance that was included in other assets in the accompanying consolidated balance sheet and that was subsequently applied to FDIC assessment periods. During 2013, the remaining prepaid was credited to Pinnacle Financial. | |||||||||||||
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 also has a forward cash flow hedge relationship to manage our future interest rate exposure. This derivative contract has been designated as a hedge and, as such, changes in the fair value of the derivative instrument are recorded in other comprehensive income. 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 and does not assume perfect effectiveness through the matching of critical terms. Assessments of hedge effectiveness and measurements of hedge ineffectiveness are performed at least quarterly. The effective 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 are initially recorded in accumulated other comprehensive income (AOCI) 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 — 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 — 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. As of December 31, 2013, Pinnacle Financial had no unrecognized tax benefits related to Federal or State income tax matters and does not anticipate any material increase or decrease in unrecognized tax benefits relative to any tax positions taken prior to December 31, 2013. | |||||||||||||
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 (a) changes in certain circumstances that cause a change in judgment about the realization of deferred tax assets in future years, (b) changes in income tax laws or rates, and (c) 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. | |||||||||||||
Pinnacle Financial and its subsidiaries file consolidated U.S. Federal and State of Tennessee income tax returns. 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 for the years ended December 31, 2010 through 2013 and the state of Tennessee for the years ended December 31, 2010 through 2013. | |||||||||||||
As of December 31, 2013, Pinnacle Financial has accrued no interest and no penalties related to uncertain tax positions. Pinnacle Financial's policy is to recognize interest and/or penalties related to income tax matters in income tax expense. | |||||||||||||
Income Per Common Share — Basic net income per share available to common stockholders (EPS) is computed by dividing net income available to common stockholders by the weighted average common shares outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted. The difference between basic and diluted weighted average shares outstanding is attributable to common stock options, common stock appreciation rights, warrants, restricted share awards, and restricted share unit awards. The dilutive effect of outstanding options, common stock appreciation rights, warrants, restricted share awards, and restricted share unit awards is reflected in diluted EPS by application of the treasury stock method. | |||||||||||||
As of December 31, 2013, there were approximately 997,000 stock options and 5,500 stock appreciation rights outstanding to purchase common shares. As of December 31, 2013 and 2012, Pinnacle Financial had no outstanding warrants to purchase common shares. For the year ended December 31, 2013 and 2012, respectively, approximately 308,000 and 588,000 of dilutive stock options, dilutive restricted shares, restricted share units and stock appreciation rights and warrants were included in the diluted earnings per share calculation under the treasury stock method. For the year ended December 31, 2013 and 2012, there were common stock options of 694,500 and 730,300, respectively outstanding which were considered anti-dilutive and thus have not been considered in the fully-diluted share calculations below. | |||||||||||||
The following is a summary of the basic and diluted earnings per share calculation for each of the years in the three-year period ended December 31, 2013: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Basic earnings per share calculation: | |||||||||||||
Numerator - Net income available to common stockholders | $ | 57,726,201 | $ | 38,069,841 | $ | 37,072,728 | |||||||
Denominator – Weighted average common shares outstanding | 34,200,770 | 33,899,667 | 33,420,015 | ||||||||||
Basic net income per common share available to common stockholders | $ | 1.69 | $ | 1.12 | $ | 1.11 | |||||||
Diluted earnings per share calculation: | |||||||||||||
Numerator - Net income available to common stockholders | $ | 57,726,201 | $ | 38,069,841 | $ | 37,072,728 | |||||||
Denominator – Weighted average common shares outstanding | 34,200,770 | 33,899,667 | 33,420,015 | ||||||||||
Dilutive shares contingently issuable | 308,491 | 588,141 | 640,213 | ||||||||||
Weighted average diluted common shares outstanding | 34,509,261 | 34,487,808 | 34,060,228 | ||||||||||
Diluted net income per common share available to common stockholders | $ | 1.67 | $ | 1.1 | $ | 1.09 | |||||||
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 requires 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 performance period. | |||||||||||||
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. generally accepted accounting principles are included in comprehensive income (loss) but excluded from net income (loss). Currently, Pinnacle Financial's other comprehensive income (loss) consists of unrealized gains and losses on securities available-for-sale, net of deferred tax expense (benefit) and unrealized gains on derivative hedging relationships. | |||||||||||||
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. generally accepted accounting principles 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 of 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. | |||||||||||||
Subsequent Events - ASC Topic 855, Subsequent Events, established general standards of accounting for an disclosure of events that occur after the balance sheet date but before financial statements are issued. Pinnacle Financial evaluated all events or transactions that occurred after December 31, 2013, through the date of the issued financial statements. During this period there were no material recognizable subsequent events that required recognition or disclosures in the December 31, 2013 financial statements. |
Acquisitions_and_Intangibles
Acquisitions and Intangibles | 12 Months Ended |
Dec. 31, 2013 | |
Acquisitions and Intangibles [Abstract] | ' |
Acquisitions and Intangibles | ' |
Note 2. Acquisitions and Intangibles | |
Acquisition – Mid-America Bancshares, Inc. On November 30, 2007, we consummated a merger with Mid-America Bancshares, Inc. (Mid-America), a two-bank holding company located in Nashville, Tennessee. Pinnacle Financial recognized $9.4 million as a core deposit intangible. This identified intangible is being amortized over ten years using an accelerated method which anticipates the life of the underlying deposits to which the intangible is attributable. For the years ended December 31, 2013, 2012, and 2011 approximately $896,000, $987,000, and $1,026,000, respectively, was recognized in the accompanying consolidated statement of operations as amortization of intangibles. Amortization expense associated with this identified intangible will approximate $700,000 to $860,000 per year for the next four years. | |
Acquisition – Cavalry Bancorp, Inc. On March 15, 2006, Pinnacle Financial consummated its merger with Cavalry, a one-bank holding company located in Murfreesboro, Tennessee. Pinnacle Financial recognized $13.2 million as a core deposit intangible. This identified intangible was being amortized over seven years using an accelerated method which anticipated the life of the underlying deposits to which the intangible is attributable. For the years ended December 31, 2013, 2012 and 2011 approximately $273,000, $1.6 million, and $1.7 million, respectively, was recognized in the accompanying consolidated statements of operations as amortization of intangibles. This intangible was fully amortized during the year ended December 31, 2013. | |
Acquisition - Beach & Gentry. During the third quarter of 2008, Pinnacle Bank acquired Murfreesboro, Tennessee based Beach & Gentry Insurance LLC (Beach & Gentry). Concurrently, Beach & Gentry merged with Miller & Loughry Insurance & Services Inc., a wholly-owned subsidiary of Pinnacle Bank, also located in Murfreesboro. In connection with this acquisition, Pinnacle Financial recorded a customer list intangible of $1,270,000 which is being amortized over 20 years on an accelerated basis. Amortization of this intangible amounted to $97,000, $103,000, and $109,000, respectively, during the years ended December 31, 2013, 2012 and 2011. |
Participation_in_US_Treasury_C
Participation in US Treasury Capital Purchase Program | 12 Months Ended |
Dec. 31, 2013 | |
Participation in U.S. Treasury Capital Purchase Program [Abstract] | ' |
Participation in U.S. Treasury Capital Purchase Program | ' |
Note 3. Participation in U.S. Treasury Capital Purchase Program (CPP) | |
On December 12, 2008, Pinnacle Financial issued 95,000 shares of preferred stock to the U.S. Treasury (the Treasury) for $95 million pursuant to the CPP. For the time the CPP preferred stock was outstanding, the CPP preferred stock was non-voting, other than having class voting rights on certain matters, and paid cumulative dividends quarterly at a rate of 5% per annum. Pinnacle Financial redeemed the preferred shares issued to the Treasury under the CPP in two transactions. During the fourth quarter of 2011, Pinnacle Financial redeemed 23,750 of the preferred shares in a transaction totaling approximately $23.9 million, including accrued but unpaid dividends of $142,000. During the second quarter of 2012, Pinnacle Financial completed the redemption of the remaining 71,250 preferred shares outstanding in a transaction totaling $71.6 million which included accrued but unpaid dividends of $346,000. Concurrently, Pinnacle Financial accelerated the accretion of the remaining preferred stock discount of approximately $1.7 million during the second quarter of 2012. | |
Additionally, Pinnacle Financial issued warrants to purchase 534,910 shares of common stock to the Treasury as a condition to its participation in the CPP. The warrants had an exercise price of $26.64 each, were immediately exercisable and expired 10 years from the date of issuance. On June 16, 2009, Pinnacle Financial completed the sale of 8,855,000 shares of its common stock in a public offering, resulting in net proceeds to Pinnacle Financial of approximately $109 million. As a result, and pursuant to the terms of the warrants, the number of shares issuable upon exercise of the warrants was reduced by 50%, or 267,455 shares. During the third quarter of 2012, Pinnacle Financial repurchased all of the remaining outstanding warrants held by the Treasury for $755,000. |
Restricted_Cash_Balances
Restricted Cash Balances | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Cash Balances [Abstract] | ' |
Restricted Cash Balances | ' |
Note 4. 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 our option, Pinnacle Financial maintains additional balances to compensate for clearing and other services. For the years ended December 31, 2013 and 2012, the average daily balance maintained at the Federal Reserve was approximately $108,765,000 and $107,609,000, respectively. |
Securities
Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Securities [Abstract] | ' | ||||||||||||||||||||||||
Securities | ' | ||||||||||||||||||||||||
Note 5. Securities | |||||||||||||||||||||||||
The amortized cost and fair value of securities available-for-sale and held-to-maturity at December 31, 2013 and 2012 are summarized as follows (in thousands): | |||||||||||||||||||||||||
December 31, 2013: | Amortized Cost | Gross | Gross | Fair | |||||||||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||
U.S Treasury Securities | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
U.S. Government agency securities | 117,282 | 13 | 13,422 | 103,873 | |||||||||||||||||||||
Mortgage-backed securities | 411,967 | 9,771 | 8,802 | 412,936 | |||||||||||||||||||||
State and municipal securities | 143,763 | 5,504 | 856 | 148,411 | |||||||||||||||||||||
Asset-backed securities | 17,262 | - | 255 | 17,007 | |||||||||||||||||||||
Corporate notes | 10,218 | 1,018 | 7 | 11,229 | |||||||||||||||||||||
$ | 700,492 | $ | 16,306 | $ | 23,342 | $ | 693,456 | ||||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||||
State and municipal securities | 39,796 | 72 | 1,051 | 38,817 | |||||||||||||||||||||
$ | 39,796 | $ | 72 | $ | 1,051 | $ | 38,817 | ||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||
U.S Treasury Securities | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
U.S. Government agency securities | 110,817 | 49 | 414 | 110,452 | |||||||||||||||||||||
Mortgage-backed securities | 360,504 | 15,770 | 623 | 375,651 | |||||||||||||||||||||
State and municipal securities | 177,364 | 14,489 | 126 | 191,727 | |||||||||||||||||||||
Asset-backed securities | 17,361 | - | 9 | 17,352 | |||||||||||||||||||||
Corporate notes | 9,881 | 1,519 | 4 | 11,396 | |||||||||||||||||||||
$ | 675,927 | $ | 31,827 | $ | 1,176 | $ | 706,578 | ||||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||||
State and municipal securities | 575 | 8 | - | 583 | |||||||||||||||||||||
$ | 575,000 | $ | 8,000 | $ | - | $ | 583 | ||||||||||||||||||
At December 31, 2013, approximately $592.0 million of Pinnacle Financial's investment portfolio was pledged to secure public funds and other deposits and securities sold under agreements to repurchase. | |||||||||||||||||||||||||
During the first quarter of 2013, approximately $40.0 million of available-for-sale securities were transferred to the held-to-maturity portfolio. The transfers of debt securities into the held-to-maturity category from the available-for-sale category were made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer was retained in other comprehensive income and in the carrying value of the held-to-maturity securities. Such amounts will be amortized to interest income over the remaining life of the securities. | |||||||||||||||||||||||||
The amortized cost and fair value of debt securities as of December 31, 2013 by contractual maturity are 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 Cost | Fair | ||||||||||||||||||||||
Cost | Value | Value | |||||||||||||||||||||||
Due in one year or less | $ | 3,480 | $ | 3,516 | $ | 318 | $ | 316 | |||||||||||||||||
Due in one year to five years | 27,583 | 28,243 | 12,097 | 12,113 | |||||||||||||||||||||
Due in five years to ten years | 129,017 | 128,285 | 15,105 | 14,640 | |||||||||||||||||||||
Due after ten years | 111,004 | 103,470 | 12,276 | 11,748 | |||||||||||||||||||||
Mortgage-backed securities | 412,146 | 412,936 | - | - | |||||||||||||||||||||
Asset-backed securities | 17,262 | 17,006 | - | - | |||||||||||||||||||||
$ | 700,492 | $ | 693,456 | $ | 39,796 | $ | 38,817 | ||||||||||||||||||
At December 31, 2013 and 2012, included in securities 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 | |||||||||||||||||||||||
less than 12 months | Unrealized Loss of | with an | |||||||||||||||||||||||
12 months or longer | Unrealized Loss | ||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized | ||||||||||||||||||||
Losses | |||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
U.S. government agency securities | 8,742 | 22 | 92,869 | 13,400 | 101,611 | 13,422 | |||||||||||||||||||
Mortgage-backed securities | 157,262 | 3,913 | 42,903 | 4,889 | 200,165 | 8,802 | |||||||||||||||||||
State and municipal securities | 46,282 | 1,351 | 3,798 | 555 | 50,080 | 1,906 | |||||||||||||||||||
Asset-backed securities | - | - | 17,006 | 255 | 17,006 | 255 | |||||||||||||||||||
Corporate notes | 946 | 6 | 159 | 2 | 1,105 | 8 | |||||||||||||||||||
Total temporarily-impaired securities | $ | 213,232 | $ | 5,292 | $ | 156,735 | $ | 19,101 | $ | 369,967 | $ | 24,393 | |||||||||||||
At December 31, 2012: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
U.S. government agency securities | 78,899 | 414 | - | - | 78,899 | 414 | |||||||||||||||||||
Mortgage-backed securities | 40,988 | 623 | - | - | 40,988 | 623 | |||||||||||||||||||
State and municipal securities | 5,179 | 126 | - | - | 5,179 | 126 | |||||||||||||||||||
Asset-backed securities | 17,353 | 9 | - | - | 17,353 | 9 | |||||||||||||||||||
Corporate notes | 162 | 4 | - | - | 162 | 4 | |||||||||||||||||||
Total temporarily-impaired securities | $ | 142,581 | $ | 1,176 | $ | - | $ | - | $ | 142,581 | $ | 1,176 | |||||||||||||
The applicable date for determining when securities are in an unrealized loss position is December 31, 2013 and 2012. 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, 2013 and 2012, but is not in the "Investments with an Unrealized Loss of less than 12 months" category above. | |||||||||||||||||||||||||
As shown in the table above, at December 31, 2013 and 2012, Pinnacle Financial had unrealized losses of $24.4 million and $1.2 million on $213.2 million and $142.6 million, respectively, of available-for-sale securities. The unrealized losses associated with these investment securities are primarily driven by changes in interest rates and are not due to the credit quality of the securities. These securities will continue to be monitored as a part of our ongoing impairment analysis, but are expected to perform even if the rating agencies reduce the credit rating of the bond issuers. Management evaluates the financial performance of the issuers on a quarterly basis to determine if it is probable that the issuers can make all contractual principal and interest payments. Because Pinnacle Financial currently does not intend to sell these securities and it is not more-likely-than-not that Pinnacle Financial will be required to sell the securities before recovery of their amortized cost bases, which may be maturity, Pinnacle Financial does not consider these securities to be other-than-temporarily impaired at December 31, 2013. | |||||||||||||||||||||||||
During the year ended December 31, 2013, Pinnacle Financial sold available-for-sale securities with a fair market value of $23.4 million and realized a loss of $1.5 million. Pinnacle Financial recorded the other-than-temporary-impairment charge in the quarter prior to the sale as a result of a change in management's intention to sell these specific securities at a loss pursuant to our asset/liability strategy. | |||||||||||||||||||||||||
The carrying values of Pinnacle Financial's investment securities could decline in the future if the financial condition of issuers deteriorates and management determines it is probable that Pinnacle Financial will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future. |
Loans_and_Allowance_for_Loan_L
Loans and Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses [Abstract] | ' | ||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||
Note 6. Loans and Allowance for Loan Losses | |||||||||||||||||||||||||||||
For financial reporting purposes, Pinnacle Financial classifies its loan portfolio based on the underlying collateral utilized to secure each loan. 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). | |||||||||||||||||||||||||||||
Pinnacle Financial uses five loan categories: commercial real estate mortgage, consumer real estate mortgage, construction and land development, commercial and industrial, consumer and other. | |||||||||||||||||||||||||||||
● | Commercial real estate mortgage loans are categorized as such based on investor exposures where repayment is largely dependent upon the operation, refinance, or sale of the underlying real estate. Commercial real estate—mortgage also includes owner occupied commercial real estate which shares a similar risk profile to our commercial and industrial loan products. | ||||||||||||||||||||||||||||
● | Consumer real estate-mortgage consists primarily of loans secured by 1-4 residential properties including home equity lines of credit. | ||||||||||||||||||||||||||||
● | Construction and land development loans include loans where the repayment is dependent on the successful operation of the related real estate project. Construction and land development loans include 1-4 family construction projects and commercial construction endeavors such as warehouses, apartments, office and retail space and land acquisition and development. | ||||||||||||||||||||||||||||
● | Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. | ||||||||||||||||||||||||||||
● | Consumer and other loans include all loans issued to individuals not included in the consumer real estate mortgage classification. Examples of consumer and other loans are automobile loans, credit cards and loans to finance education, among others. | ||||||||||||||||||||||||||||
Commercial loans receive risk ratings 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-impaired or doubtful-impaired. Pass-rated loans include five distinct ratings categories for loans that represent specific attributes. Pinnacle Financial believes that its categories follow those outlined by Pinnacle Bank's primary regulators. At December 31, 2013, approximately 74% of our loan portfolio was analyzed as a commercial loan type with a specifically assigned risk rating in the allowance for loan loss assessment. Consumer loans and small business loans are generally not assigned an individual risk rating but are evaluated as either accrual or nonaccrual based on the performance of the individual loans. However, certain consumer real estate-mortgage loans and certain consumer and other loans receive a specific risk rating due to the loan proceeds being used for commercial purposes even though the collateral may be of a consumer loan nature. | |||||||||||||||||||||||||||||
Risk ratings are subject to continual review by the loan officer. At least annually, our credit policy requires that every risk rated loan of $500,000 or more be subject to a formal credit risk review process. Each loan grade is also subject to review by our independent loan review department. Currently, our independent loan review department reviews a significant portion of our risk rated portfolio annually. Included in the coverage are independent loan reviews of loans in targeted higher-risk portfolio segments such as certain commercial and industrial loans, land loans and/or loan types in certain geographies. | |||||||||||||||||||||||||||||
The following table presents our loan balances by primary loan classification and the amount within each risk rating category. Pass-rated loans include all credits other than those included in special mention, substandard, substandard-nonaccrual and doubtful-nonaccrual which are defined as follows: | |||||||||||||||||||||||||||||
● | Special mention loans have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in Pinnacle Financial's credit position at some future date. | ||||||||||||||||||||||||||||
● | Substandard loans are inadequately protected by the current sound worth and paying 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 will 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. | ||||||||||||||||||||||||||||
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||||||
The following table outlines the amount of each loan classification categorized into each risk rating category as of December 31, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||
31-Dec-13 | Commercial real estate - mortgage | Consumer real estate - mortgage | Construction and land development | Commercial and industrial | Consumer | Total | |||||||||||||||||||||||
and other | |||||||||||||||||||||||||||||
Accruing loans: | |||||||||||||||||||||||||||||
Pass | $ | 1,332,387 | $ | 670,412 | $ | 275,876 | $ | 1,557,923 | $ | 143,032 | $ | 3,979,630 | |||||||||||||||||
Special Mention | 8,282 | 1,824 | 31,835 | 20,065 | - | 62,006 | |||||||||||||||||||||||
Substandard (1) | 20,296 | 14,107 | 7,297 | 23,174 | 154 | 65,028 | |||||||||||||||||||||||
Total | 1,360,965 | 686,343 | 315,008 | 1,601,162 | 143,186 | 4,106,664 | |||||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||||||||||
Nonaccruing loans | |||||||||||||||||||||||||||||
Substandard-nonaccrual | 9,017 | 5,289 | 1,070 | 2,565 | 242 | 18,183 | |||||||||||||||||||||||
Doubtful-nonaccrual | - | - | - | - | - | - | |||||||||||||||||||||||
Total nonaccruing loans | 9,017 | 5,289 | 1,070 | 2,565 | 242 | 18,183 | |||||||||||||||||||||||
Troubled debt restructurings(2) | |||||||||||||||||||||||||||||
Pass | 2,564 | 1,666 | 113 | 320 | 276 | 4,939 | |||||||||||||||||||||||
Special Mention | - | - | - | - | - | - | |||||||||||||||||||||||
Substandard | 10,889 | 2,318 | - | 1,500 | - | 14,707 | |||||||||||||||||||||||
Total troubled debt restructurings | 13,453 | 3,984 | 113 | 1,820 | 276 | 19,646 | |||||||||||||||||||||||
Total impaired loans | 22,470 | 9,273 | 1,183 | 4,385 | 518 | 37,829 | |||||||||||||||||||||||
Total loans | $ | 1,383,435 | $ | 695,616 | $ | 316,191 | $ | 1,605,547 | $ | 143,704 | $ | 4,144,493 | |||||||||||||||||
31-Dec-12 | Commercial real estate - mortgage | Consumer real estate - mortgage | Construction and land development | Commercial and industrial | Consumer | Total | |||||||||||||||||||||||
and other | |||||||||||||||||||||||||||||
Accruing loans: | |||||||||||||||||||||||||||||
Pass | $ | 1,093,628 | $ | 649,571 | $ | 259,878 | $ | 1,390,207 | $ | 93,712 | $ | 3,486,996 | |||||||||||||||||
Special Mention | 12,670 | 4,242 | 29,472 | 23,133 | - | 69,517 | |||||||||||||||||||||||
Substandard (1) | 42,343 | 13,896 | 19,622 | 29,513 | - | 105,374 | |||||||||||||||||||||||
Total | 1,148,641 | 667,709 | 308,972 | 1,442,853 | 93,712 | 3,661,887 | |||||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||||||||||
Nonaccruing loans | |||||||||||||||||||||||||||||
Substandard-nonaccrual | 9,290 | 5,877 | 4,509 | 3,035 | 79 | 22,790 | |||||||||||||||||||||||
Doubtful-nonaccrual | 1 | 29 | - | 3 | - | 33 | |||||||||||||||||||||||
Total nonaccruing loans | 9,291 | 5,906 | 4,509 | 3,038 | 79 | 22,823 | |||||||||||||||||||||||
Troubled debt restructurings(2) | |||||||||||||||||||||||||||||
Pass | 4,705 | 3,623 | 71 | 502 | 119 | 9,020 | |||||||||||||||||||||||
Special Mention | - | - | - | - | - | - | |||||||||||||||||||||||
Substandard | 15,559 | 2,688 | - | 185 | - | 18,432 | |||||||||||||||||||||||
Total troubled debt restructurings | 20,264 | 6,311 | 71 | 687 | 119 | 27,452 | |||||||||||||||||||||||
Total impaired loans | 29,555 | 12,217 | 4,580 | 3,725 | 198 | 50,275 | |||||||||||||||||||||||
Total loans | $ | 1,178,196 | $ | 679,926 | $ | 313,552 | $ | 1,446,578 | $ | 93,910 | $ | 3,712,162 | |||||||||||||||||
-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 the impact of substandard nonperforming loans and substandard troubled debt restructurings. Potential problem loans, which are not included in nonperforming assets, amounted to approximately $65.0 million at December 31, 2013, compared to $105.4 million at December 31, 2012. | ||||||||||||||||||||||||||||
-2 | Troubled debt restructurings are presented as an impaired loan; however, they continue to accrue interest at contractual rates. | ||||||||||||||||||||||||||||
At December 31, 2013 and 2012, all loans classified as nonaccrual were deemed to be impaired. The principal balances of these nonaccrual loans amounted to $18.2 million and $22.8 million at December 31, 2013 and 2012, respectively, and are included in the table above. For the twelve months ended December 31, 2013, the average balance of nonaccrual loans was $21.5 million as compared to $38.4 million for the twelve months ended December 31, 2012. At the date such loans were placed on nonaccrual status, Pinnacle Financial reversed all previously accrued interest income against current year earnings. Had these nonaccruing loans been on accruing status, interest income would have been higher by $375,000, $1.4 million and $5.0 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
The following tables detail the recorded investment, unpaid principal balance and related allowance and average recorded investment of our nonaccrual loans at December 31, 2013, 2012 and 2011 by loan classification and the amount of interest income recognized on a cash basis throughout the year-to-date period then ended, respectively, on these loans that remain on the balance sheets (in thousands): | |||||||||||||||||||||||||||||
At December 31, 2013 | For the year ended | ||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Recorded | Unpaid principal balance | Related | Average recorded investment | Interest income recognized | |||||||||||||||||||||||||
investment | allowance(1) | ||||||||||||||||||||||||||||
Collateral dependent nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial real estate – mortgage | $ | 7,035 | $ | 7,481 | $ | - | $ | 6,522 | $ | - | |||||||||||||||||||
Consumer real estate – mortgage | 2,162 | 2,209 | - | 2,234 | - | ||||||||||||||||||||||||
Construction and land development | 545 | 545 | - | 938 | - | ||||||||||||||||||||||||
Commercial and industrial | 1,828 | 1,901 | - | 3,911 | - | ||||||||||||||||||||||||
Consumer and other | - | - | - | - | - | ||||||||||||||||||||||||
Total | $ | 11,570 | $ | 12,136 | $ | - | $ | 13,605 | $ | - | |||||||||||||||||||
Cash flow dependent nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial real estate – mortgage | $ | 1,982 | $ | 2,166 | $ | 142 | $ | 2,448 | $ | - | |||||||||||||||||||
Consumer real estate – mortgage | 3,127 | 3,334 | 722 | 3,405 | - | ||||||||||||||||||||||||
Construction and land development | 525 | 609 | 33 | 568 | - | ||||||||||||||||||||||||
Commercial and industrial | 737 | 1,029 | 218 | 1,216 | - | ||||||||||||||||||||||||
Consumer and other | 242 | 252 | 72 | 242 | - | ||||||||||||||||||||||||
Total | $ | 6,613 | $ | 7,390 | $ | 1,187 | $ | 7,879 | $ | - | |||||||||||||||||||
Total Nonaccrual Loans | $ | 18,183 | $ | 19,526 | $ | 1,187 | $ | 21,484 | $ | - | |||||||||||||||||||
At December 31, 2012 | For the year ended | ||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Recorded | Unpaid principal balance | Related | Average recorded investment | Interest income recognized | |||||||||||||||||||||||||
investment | allowance(1) | ||||||||||||||||||||||||||||
Collateral dependent nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial real estate – mortgage | $ | 8,740 | $ | 11,187 | $ | - | $ | 11,194 | $ | - | |||||||||||||||||||
Consumer real estate – mortgage | 3,641 | 6,394 | - | 6,394 | - | ||||||||||||||||||||||||
Construction and land development | 1,546 | 2,062 | - | 2,063 | - | ||||||||||||||||||||||||
Commercial and industrial | 1,547 | 1,761 | - | 1,896 | - | ||||||||||||||||||||||||
Consumer and other | - | - | - | - | - | ||||||||||||||||||||||||
Total | $ | 15,474 | $ | 21,404 | $ | - | $ | 21,547 | $ | - | |||||||||||||||||||
Cash flow dependent nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial real estate – mortgage | $ | 551 | $ | 1,841 | $ | 154 | $ | 3,228 | $ | - | |||||||||||||||||||
Consumer real estate – mortgage | 2,265 | 4,473 | 573 | 5,828 | - | ||||||||||||||||||||||||
Construction and land development | 2,963 | 4,701 | 201 | 5,102 | - | ||||||||||||||||||||||||
Commercial and industrial | 1,491 | 2,459 | 814 | 2,528 | - | ||||||||||||||||||||||||
Consumer and other | 79 | 179 | 22 | 180 | - | ||||||||||||||||||||||||
Total | $ | 7,349 | $ | 13,653 | $ | 1,764 | $ | 16,866 | $ | - | |||||||||||||||||||
Total Nonaccrual Loans | $ | 22,823 | $ | 35,057 | $ | 1,764 | $ | 38,413 | $ | - | |||||||||||||||||||
At December 31, 2011 | For the year ended | ||||||||||||||||||||||||||||
31-Dec-11 | |||||||||||||||||||||||||||||
Recorded | Unpaid principal balance | Related | Average recorded investment | Interest income recognized | |||||||||||||||||||||||||
investment | allowance(1) | ||||||||||||||||||||||||||||
Collateral dependent nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial real estate – mortgage | $ | 9,345 | $ | 12,099 | $ | - | $ | 12,450 | $ | 5 | |||||||||||||||||||
Consumer real estate – mortgage | 9,248 | 9,961 | - | 10,140 | - | ||||||||||||||||||||||||
Construction and land development | 6,917 | 9,093 | - | 9,288 | 37 | ||||||||||||||||||||||||
Commercial and industrial | 3,036 | 3,546 | - | 3,689 | - | ||||||||||||||||||||||||
Consumer and other | - | - | - | - | - | ||||||||||||||||||||||||
Total | $ | 28,546 | $ | 34,699 | $ | - | $ | 35,567 | $ | 42 | |||||||||||||||||||
Cash flow dependent nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial real estate – mortgage | $ | 617 | $ | 661 | $ | 57 | $ | 792 | $ | - | |||||||||||||||||||
Consumer real estate – mortgage | 3,239 | 4,902 | 301 | 5,005 | - | ||||||||||||||||||||||||
Construction and land development | 6,048 | 6,822 | 1,264 | 7,074 | - | ||||||||||||||||||||||||
Commercial and industrial | 8,854 | 11,041 | 2,767 | 11,497 | - | ||||||||||||||||||||||||
Consumer and other | 551 | 856 | 51 | 857 | - | ||||||||||||||||||||||||
Total | $ | 19,309 | $ | 24,282 | $ | 4,440 | $ | 25,225 | $ | - | |||||||||||||||||||
Total Nonaccrual Loans | $ | 47,855 | $ | 58,981 | $ | 4,440 | $ | 60,792 | $ | 42 | |||||||||||||||||||
-1 | Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. | ||||||||||||||||||||||||||||
Pinnacle Financial's policy is that once a loan is placed on nonaccrual status each subsequent payment is reviewed on a case-by-case basis to determine if the payment should be applied to interest or principal pursuant to regulatory guidelines. Pinnacle Financial recognized no interest income from cash payments received on nonaccrual loans during the years ended December 31, 2013 and 2012 and $42,000 of interest income during the year ended December 31, 2011. | |||||||||||||||||||||||||||||
At December 31, 2013 and 2012, there were $19.6 million and $27.5 million, respectively, of troubled debt restructurings that were performing as of their restructure date and which are accruing interest. These troubled debt restructurings are considered impaired loans pursuant to U.S. GAAP. Troubled commercial loans are restructured by specialists within Pinnacle Bank's Special Assets Group, and all restructurings are approved by committees and credit officers separate and apart from the normal loan approval process. These specialists are charged with reducing Pinnacle Financial's overall risk and exposure to loss in the event of a restructuring by obtaining some or all of the following: improved documentation, additional guaranties, increase in curtailments, reduction in collateral release terms, additional collateral or other similar strategies. | |||||||||||||||||||||||||||||
The following table outlines the amount of each troubled debt restructuring by loan classification made during the year ended December 31, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||
Number | Pre | Post Modification Outstanding Recorded Investment, net of related allowance | Number of contracts | Pre | Post | ||||||||||||||||||||||||
of contracts | Modification Outstanding Recorded | Modification Outstanding Recorded | Modification Outstanding Recorded Investment, net of related allowance | ||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||
Commercial real estate – mortgage | - | $ | - | $ | - | 4 | $ | 11,539 | $ | 10,022 | |||||||||||||||||||
Consumer real estate – mortgage | 1 | 500 | 427 | 4 | 834 | 718 | |||||||||||||||||||||||
Construction and land development | 1 | 56 | 49 | - | - | - | |||||||||||||||||||||||
Commercial and industrial | 2 | 1,750 | 1,535 | - | - | - | |||||||||||||||||||||||
Consumer and other | 2 | 277 | 243 | 1 | 36 | 31 | |||||||||||||||||||||||
6 | $ | 2,583 | $ | 2,254 | 9 | $ | 12,409 | $ | 10,771 | ||||||||||||||||||||
During the year ended December 31, 2013, one consumer loan totaling $480,000 which was previously classified as a troubled debt restructuring subsequently defaulted within twelve months of restructuring. During the year ended December 31, 2012, two commercial real estate loans totaling $3.2 million, eight commercial and industrial loans totaling $476,000 and two consumer loans totaling $153,000 which were previously classified as troubled debt restructurings subsequently defaulted within twelve months of the restructuring. A default is defined as an occurrence which violates the terms of the receivable's contract. A default is defined as an occurrence which violates the terms of the receivable's contract. | |||||||||||||||||||||||||||||
In addition to the loan metrics above, Pinnacle Financial analyzes its commercial loan portfolio to determine if a concentration of credit risk exists to any industries. Pinnacle Financial utilizes broadly accepted industry classification systems in order to classify borrowers into various industry classifications. Pinnacle Financial has a credit exposure (loans outstanding plus unfunded lines of credit) exceeding 25% of Pinnacle Bank's total risk-based capital to borrowers in the following industries at December 31, 2013 with the comparative exposures for December 31, 2012 (in thousands): | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
Outstanding Principal Balances | Unfunded Commitments | Total exposure | Total Exposure at December 31, 2012 | ||||||||||||||||||||||||||
Lessors of nonresidential buildings | $ | 471,978 | $ | 43,262 | $ | 515,240 | $ | 440,237 | |||||||||||||||||||||
Lessors of residential buildings | 242,029 | 28,744 | 270,773 | 215,899 | |||||||||||||||||||||||||
The table below presents past due balances at December 31, 2013 and 2012, by loan classification and segment allocated between performing and nonperforming status (in thousands): | |||||||||||||||||||||||||||||
31-Dec-13 | 30-89 days past due and performing | 90 days or more past due and performing | Total past due and performing | Nonperforming(1) | Current | Total | |||||||||||||||||||||||
and performing | Loans | ||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner-occupied | $ | 2,534 | $ | - | $ | 2,534 | $ | 7,750 | $ | 669,014 | $ | 679,298 | |||||||||||||||||
All other | 27 | 2,232 | 2,259 | 1,267 | 700,611 | 704,137 | |||||||||||||||||||||||
Consumer real estate – mortgage | 2,215 | - | 2,215 | 5,289 | 688,112 | 695,616 | |||||||||||||||||||||||
Construction and land development | 4,839 | - | 4,839 | 1,070 | 310,282 | 316,191 | |||||||||||||||||||||||
Commercial and industrial | 1,847 | 825 | 2,672 | 2,565 | 1,600,310 | 1,605,547 | |||||||||||||||||||||||
Consumer and other | 1,488 | 289 | 1,777 | 242 | 141,685 | 143,704 | |||||||||||||||||||||||
$ | 12,950 | $ | 3,346 | $ | 16,296 | $ | 18,183 | $ | 4,110,014 | $ | 4,144,493 | ||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner-occupied | $ | 462 | $ | - | $ | 462 | $ | 8,091 | $ | 585,848 | $ | 594,401 | |||||||||||||||||
All other | 41 | - | 41 | 1,200 | 582,554 | 583,795 | |||||||||||||||||||||||
Consumer real estate – mortgage | 3,870 | - | 3,870 | 5,906 | 670,150 | 679,926 | |||||||||||||||||||||||
Construction and land development | 3,511 | - | 3,511 | 4,509 | 305,532 | 313,552 | |||||||||||||||||||||||
Commercial and industrial | 2,549 | - | 2,549 | 3,038 | 1,440,991 | 1,446,578 | |||||||||||||||||||||||
Consumer and other | 444 | - | 444 | 79 | 93,387 | 93,910 | |||||||||||||||||||||||
$ | 10,877 | $ | - | $ | 10,877 | $ | 22,823 | $ | 3,678,462 | $ | 3,712,162 | ||||||||||||||||||
-1 | Approximately $10.9 million and $9.4 million of nonaccrual loans as of December 31, 2013 and 2012, respectively, are currently performing pursuant to their contractual terms. | ||||||||||||||||||||||||||||
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||||||
The following table shows the allowance allocation by loan classification for accruing and nonperforming loans at December 31, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||
Accruing Loans | Nonaccrual Loans | Troubled Debt Restructurings(1) | Total Allowance | ||||||||||||||||||||||||||
for Loan Losses | |||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||
Commercial real estate –mortgage | $ | 19,298 | $ | 16,642 | $ | 142 | $ | 154 | $ | 1,932 | $ | 2,838 | $ | 21,372 | $ | 19,634 | |||||||||||||
Consumer real estate – mortgage | 7,090 | 7,336 | 722 | 573 | 543 | 853 | 8,355 | 8,762 | |||||||||||||||||||||
Construction and land development | 7,186 | 8,953 | 33 | 201 | 16 | 10 | 7,235 | 9,164 | |||||||||||||||||||||
Commercial and industrial | 24,660 | 23,829 | 218 | 814 | 256 | 95 | 25,134 | 24,738 | |||||||||||||||||||||
Consumer and other | 1,521 | 1,055 | 72 | 22 | 39 | 17 | 1,632 | 1,094 | |||||||||||||||||||||
Unallocated | - | - | - | - | - | - | 4,242 | 6,025 | |||||||||||||||||||||
$ | 59,755 | $ | 57,815 | $ | 1,187 | $ | 1,764 | $ | 2,786 | $ | 3,813 | $ | 67,970 | $ | 69,417 | ||||||||||||||
-1 | Troubled debt restructurings of $19.6 million and $27.5 million as of December 31, 2013 and 2012, respectively, are classified as impaired loans pursuant to U.S. GAAP; however, these loans continue to accrue interest at contractual rates. | ||||||||||||||||||||||||||||
The following table details the changes in the allowance for loan losses from December 31, 2011 to December 31, 2012 to December 31, 2013 by loan classification (in thousands): | |||||||||||||||||||||||||||||
Commercial real estate – | Consumer real estate – mortgage | Construction and land development | Commercial and industrial | Consumer and other | Unallocated | Total | |||||||||||||||||||||||
mortgage | |||||||||||||||||||||||||||||
Balances, December 31, 2010 | $ | 19,252 | $ | 9,898 | $ | 19,122 | $ | 21,426 | $ | 1,874 | $ | 11,003 | $ | 82,575 | |||||||||||||||
Charged-off loans | (3,044 | ) | (5,076 | ) | (10,157 | ) | (15,360 | ) | (1,213 | ) | - | (34,850 | ) | ||||||||||||||||
Recovery of previously charged-off loans | 116 | 495 | 1,530 | 2,167 | 144 | - | 4,452 | ||||||||||||||||||||||
Provision for loan losses | 7,073 | 4,985 | 1,545 | 12,556 | 320 | (4,681 | ) | 21,798 | |||||||||||||||||||||
Balances, December 31, 2011 | $ | 23,397 | $ | 10,302 | $ | 12,040 | $ | 20,789 | $ | 1,125 | $ | 6,322 | $ | 73,975 | |||||||||||||||
Charged-off loans | (4,667 | ) | (6,731 | ) | (2,530 | ) | (4,612 | ) | (1,117 | ) | - | (19,657 | ) | ||||||||||||||||
Recovery of previously charged-off loans | 285 | 818 | 1,155 | 7,175 | 97 | - | 9,530 | ||||||||||||||||||||||
Provision for loan losses | 619 | 4,373 | (1,501 | ) | 1,386 | 989 | (297 | ) | 5,569 | ||||||||||||||||||||
Balances, December 31, 2012 | $ | 19,634 | $ | 8,762 | $ | 9,164 | $ | 24,738 | $ | 1,094 | $ | 6,025 | $ | 69,417 | |||||||||||||||
Charged-off loans | (4,123 | ) | (2,250 | ) | (1,351 | ) | (8,159 | ) | (1,369 | ) | - | (17,252 | ) | ||||||||||||||||
Recovery of previously charged-off loans | 500 | 1,209 | 1,464 | 4,531 | 244 | - | 7,948 | ||||||||||||||||||||||
Provision for loan losses | 5,361 | 634 | (2,042 | ) | 4,024 | 1,663 | (1,783 | ) | 7,857 | ||||||||||||||||||||
Balances, December 31, 2013 | $ | 21,372 | $ | 8,355 | $ | 7,235 | $ | 25,134 | $ | 1,632 | $ | 4,242 | $ | 67,970 | |||||||||||||||
The adequacy of the allowance for loan losses is assessed at the end of each calendar quarter. The level of the allowance is based upon evaluation of the loan portfolio, historical loss experience, current asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers' ability to repay (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, historical loss experience, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. | |||||||||||||||||||||||||||||
At December 31, 2013, Pinnacle Financial had granted loans and other extensions of credit amounting to approximately $11.2 million to current directors, executive officers, and their related entities, of which $8.9 million had been drawn upon. At December 31, 2012, Pinnacle Financial had granted loans and other extensions of credit amounting to approximately $8.8 million to directors, executive officers, and their related entities, of which approximately $8.1 million had been drawn upon. These loans and extensions of credit were made on substantially the same terms customary for other persons similarly situated for the type of loan involved. None of these loans to directors, executive officers, and their related entities were impaired at December 31, 2013 or 2012. | |||||||||||||||||||||||||||||
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||||||
Residential Lending | |||||||||||||||||||||||||||||
At December 31, 2013, Pinnacle Financial had approximately $12.9 million of mortgage loans held-for-sale compared to approximately $41.2 million at December 31, 2012. Pinnacle Financial generally has an agreement for the subsequent sale of the mortgage loan prior to the loan being closed with the borrower. Pinnacle Financial sells loans to third-party investors on a loan-by-loan basis and has not entered into any forward commitments with investors for future bulk loan sales. All of these loan sales transfer servicing rights to the buyer. During the three years ended December 31, 2013, Pinnacle Financial recognized $6.2 million, $6.7 million and $4.2 million, respectively, in gains on the sale of these loans, net of commissions paid. | |||||||||||||||||||||||||||||
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 best efforts 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. Generally, loans sold to the HUD/VA are underwritten by Pinnacle Bank while the majority of the loans sold to other investors are underwritten by the purchaser of the loans. | |||||||||||||||||||||||||||||
Each purchaser 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. | |||||||||||||||||||||||||||||
From inception of Pinnacle Bank's mortgage department in January 2003 through December 31, 2013, Pinnacle Bank originated and sold approximately 15,000 mortgage loans totaling $3.2 billion to third-party purchasers. Of the approximately 15,000 mortgage loans, Pinnacle Bank underwrote approximately 4,000 conventional loans at an 80% or less loan-to-value that were sold to other investors and underwrote 3,000 loans that were sold to the HUD/VA. To date, repurchase activity pursuant to the terms of these representations and warranties has been insignificant to Pinnacle Bank. The remaining mortgage loans were underwritten by the purchasers of those loans, but funded by Pinnacle Bank until settlement with the purchaser. | |||||||||||||||||||||||||||||
Based on information currently available, management believes that it does not have material exposure to losses that may arise relating to the representations and warranties that it has made in connection with its mortgage loan sales. | |||||||||||||||||||||||||||||
At December 31, 2013, Pinnacle Bank has $681.3 million of home equity and consumer mortgage loans which are secured by first or second liens on residential properties. Foreclosure activity in this portfolio has been minimal. Any foreclosures on these loans are handled by designated Pinnacle Bank personnel and external legal counsel, as appropriate, following established policies regarding legal and regulatory requirements. Pinnacle Bank has not imposed any freezes on foreclosures. Based on information currently available, management believes that it does not have material exposure to faulty foreclosure practices. |
Premises_and_Equipment_and_Lea
Premises and Equipment and Lease Commitments | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Premises and Equipment and Lease Commitments [Abstract] | ' | |||||||||
Premises and Equipment and Lease Commitments | ' | |||||||||
Note 7. Premises and Equipment and Lease Commitments | ||||||||||
Premises and equipment at December 31, 2013 and 2012 are summarized as follows (in thousands): | ||||||||||
Range of Useful Lives | 2013 | 2012 | ||||||||
Land | Not applicable | $ | 19,281 | $ | 19,256 | |||||
Buildings | 15 to 30 years | 48,558 | 47,918 | |||||||
Leasehold improvements | 15 to 20 years | 20,283 | 19,031 | |||||||
Furniture and equipment | 3 to 15 years | 51,673 | 50,711 | |||||||
139,795 | 136,916 | |||||||||
Accumulated depreciation and amortization | (67,145 | ) | (61,111 | ) | ||||||
$ | 72,650 | $ | 75,805 | |||||||
Depreciation and amortization expense was approximately $6.0 million, $6.6 million, and $6.6 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||
Pinnacle Financial has entered into various operating leases, primarily for office space and branch facilities. Rent expense related to these leases for 2013, 2012 and 2011 totaled $4.4 million, $4.1 million and $3.8 million, respectively. At December 31, 2013, the approximate future minimum lease payments due under the aforementioned operating leases for their base term are as follows (in thousands): | ||||||||||
2014 | $ | 4,202 | ||||||||
2015 | 4,093 | |||||||||
2016 | 4,189 | |||||||||
2017 | 4,042 | |||||||||
2018 | 3,829 | |||||||||
Thereafter | 29,017 | |||||||||
$ | 49,372 |
Deposits
Deposits | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Deposits [Abstract] | ' | ||||
Deposits | ' | ||||
Note 8. Deposits | |||||
At December 31, 2013, the scheduled maturities of time deposits are as follows (in thousands): | |||||
2014 | $ | 370,295 | |||
2015 | 91,743 | ||||
2016 | 32,931 | ||||
2017 | 22,186 | ||||
2018 | 1,858 | ||||
Thereafter | 36 | ||||
$ | 519,049 | ||||
Additionally, at December 31, 2013 and 2012, approximately $77.8 million and $87.2 million, respectively, of time deposits had been issued in denominations of $250,000 or greater. | |||||
At December 31, 2013 and 2012, Pinnacle Financial had $828,000 and $1.0 million, respectively, of deposit accounts in overdraft status and thus have been reclassified to loans on the accompanying consolidated balance sheets. |
Federal_Home_Loan_Bank_Advance
Federal Home Loan Bank Advances | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Federal Home Loan Bank Advances [Abstract] | ' | ||||||||
Federal Home Loan Bank Advances | ' | ||||||||
Note 9. Federal Home Loan Bank Advances | |||||||||
Pinnacle Bank is a member of the Federal Home Loan Bank of Cincinnati (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 $1.1 billion as collateral under the borrowing agreements with the FHLB. | |||||||||
At December 31, 2013 and 2012, Pinnacle Financial had received advances from the FHLB totaling $90,479,000 and $75,609,000, respectively. Additionally, Pinnacle Financial recognized a discount on FHLB advances in conjunction with previous acquisitions. The remaining discount was $158,000 and $241,000 at December 31, 2013 and 2012, respectively. At December 31, 2013, the scheduled maturities of these advances and interest rates are as follows (in thousands): | |||||||||
Scheduled Maturities | Weighted average interest rates | ||||||||
2014 | $ | 75,000 | 0.12 | % | |||||
2015 | - | - | |||||||
2016 | 15,000 | 2.39 | % | ||||||
2017 | - | - | |||||||
2018 | 12 | 2 | % | ||||||
Thereafter | 467 | 2.45 | % | ||||||
$ | 90,479 | ||||||||
Weighted average interest rate | 0.51 | % | |||||||
During 2013, Pinnacle Bank restructured approximately $35.0 million of FHLB advances to reduce its ongoing funding costs. This restructuring was undertaken to reduce the weighted average interest rates on those FHLB advances from 1.79%, which was significantly higher than the rate for replacement funding. Other than the interest rates, the terms of the replacement advances are similar to those of the advances restructured. This restructuring resulted in a one-time charge of $877,000 during the first quarter of 2013. | |||||||||
At December 31, 2013, 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, 2013, there was no balance owed to the Federal Reserve Bank or other correspondents under these agreements. At December 31, 2013, Pinnacle Bank had approximately $2.0 billion in borrowing availability with the FHLB, the Federal Reserve Bank discount window, and other correspondent banks with whom Pinnacle Bank has arranged lines of credit. At December 31, 2013, Pinnacle Bank was not carrying any balances with the Federal Reserve Bank discount window or correspondent banks under these arrangements and was carrying a balance of $90.5 million with the FHLB. |
Investments_in_Affiliated_Comp
Investments in Affiliated Companies and Subordinated Debt | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investments in Affiliated Companies and Subordinated Debt [Abstract] | ' | ||||||||||||||||
Investments in Affiliated Companies and Subordinated Debt | ' | ||||||||||||||||
Note 10. Investments in Affiliated Companies and Subordinated Debt | |||||||||||||||||
Beginning on December 29, 2003, Pinnacle Financial established Trusts that were created for the exclusive purpose of issuing 30-year capital trust preferred securities and used the proceeds to acquire junior subordinated debentures (Subordinated Debentures) issued by Pinnacle Financial. The sole assets of the Trusts are the Subordinated Debentures. The $2,476,000 investment in the Trusts is included in other investments in the accompanying consolidated balance sheets and the $82,476,000 obligation is reflected as subordinated debt. The details of the Trusts established are as follows: | |||||||||||||||||
Date | Maturity | Common | Trust Preferred Securities | Floating Interest Rate | Interest Rate at December 31, 2013 | ||||||||||||
Established | Securities | ||||||||||||||||
Trust I | 29-Dec-03 | 30-Dec-33 | $ | 310,000 | $ | 10,000,000 | Libor + 2.80% | 3.04 | % | ||||||||
Trust II | 15-Sep-05 | 30-Sep-35 | 619,000 | 20,000,000 | Libor + 1.40% | 1.65 | % | ||||||||||
Trust III | 7-Sep-06 | 30-Sep-36 | 619,000 | 20,000,000 | Libor + 1.65% | 1.9 | % | ||||||||||
Trust IV | 31-Oct-07 | 30-Sep-37 | 928,000 | 30,000,000 | Libor + 2.85% | 3.09 | % | ||||||||||
Distributions are payable quarterly. The Trust Preferred Securities are subject to mandatory redemption upon repayment of the Subordinated Debentures at their stated maturity date or their earlier redemption in an amount equal to their liquidation amount plus accumulated and unpaid distributions to the date of redemption. Pinnacle Financial guarantees the payment of distributions and payments for redemption or liquidation of the Trust Preferred Securities to the extent of funds held by the Trusts. Pinnacle Financial's obligations under the Subordinated Debentures together with the guarantee and other back-up obligations, in the aggregate, constitute a full and unconditional guarantee by Pinnacle Financial of the obligations of the Trusts under the Trust Preferred Securities. | |||||||||||||||||
The Subordinated Debentures are unsecured, bear interest at a rate equal to the rates paid by the Trusts on the Trust Preferred Securities and mature on the same dates as those noted above for the Trust Preferred Securities. Interest is payable quarterly. We may defer the payment of interest at any time for a period not exceeding 20 consecutive quarters provided that the deferral period does not extend past the stated maturity. During any such deferral period, distributions on the Trust Preferred Securities will also be deferred and our ability to pay dividends on our common shares will be restricted. | |||||||||||||||||
The Trust Preferred Securities may be redeemed prior to maturity at our option. The Trust Preferred Securities may also be redeemed at any time in whole (but not in part) in the event of unfavorable changes in laws or regulations that result in (1) the Trust becoming subject to federal income tax on income received on the Subordinated Debentures, (2) interest payable by the parent company on the Subordinated Debentures becoming non-deductible for federal tax purposes, (3) the requirement for the Trust to register under the Investment Company Act of 1940, as amended, or (4) loss of the ability to treat the Trust Preferred Securities as "Tier I capital" under the Federal Reserve capital adequacy guidelines. | |||||||||||||||||
Under current Federal Reserve capital adequacy guidelines, the Trust Preferred Securities are treated as Tier I capital so long as Pinnacle Financial has less than $15 billion in assets. | |||||||||||||||||
Combined summary financial information for the Trusts follows (in thousands): | |||||||||||||||||
Combined Summary Balance Sheets | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||
Asset – Investment in subordinated debentures issued by Pinnacle Financial | $ | 82,476 | $ | 82,476 | |||||||||||||
Liabilities | $ | - | $ | - | |||||||||||||
Stockholder's equity – Trust preferred securities | 80,000 | 80,000 | |||||||||||||||
Common securities (100% owned by Pinnacle Financial) | 2,476 | 2,476 | |||||||||||||||
Total stockholder's equity | 82,476 | 82,476 | |||||||||||||||
Total liabilities and stockholder's equity | $ | 82,476 | $ | 82,476 | |||||||||||||
Combined Summary Income Statements | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Income – Interest income from subordinated debentures issued by Pinnacle Financial | $ | 2,057 | $ | 2,218 | $ | 2,082 | |||||||||||
Net Income | $ | 2,057 | $ | 2,218 | $ | 2,082 | |||||||||||
Combined Summary Statements of Stockholder's Equity | |||||||||||||||||
Trust | Total | Retained | Stockholder's | ||||||||||||||
Preferred | Common | Earnings | Equity | ||||||||||||||
Securities | Stock | ||||||||||||||||
Balances, December 31, 2010 | $ | 80,000 | $ | 2,476 | $ | - | $ | 82,476 | |||||||||
Net income | - | - | 2,082 | 2,082 | |||||||||||||
Issuance of trust preferred securities | - | - | - | - | |||||||||||||
Dividends: | |||||||||||||||||
Trust preferred securities | - | - | (2,017 | ) | (2,017 | ) | |||||||||||
Common- paid to Pinnacle Financial | - | - | (65 | ) | (65 | ) | |||||||||||
Balances, December 31, 2011 | $ | 80,000 | $ | 2,476 | $ | - | $ | 82,476 | |||||||||
Net income | - | - | 2,218 | 2,218 | |||||||||||||
Issuance of trust preferred securities | - | - | - | - | |||||||||||||
Dividends: | |||||||||||||||||
Trust preferred securities | - | - | (2,151 | ) | (2,151 | ) | |||||||||||
Common- paid to Pinnacle Financial | - | - | (67 | ) | (67 | ) | |||||||||||
Balances, December 31, 2012 | $ | 80,000 | $ | 2,476 | $ | - | $ | 82,476 | |||||||||
Net income | - | - | 2,057 | 2,057 | |||||||||||||
Issuance of trust preferred securities | - | - | - | - | |||||||||||||
Dividends: | |||||||||||||||||
Trust preferred securities | - | - | (1,995 | ) | (1,995 | ) | |||||||||||
Common- paid to Pinnacle Financial | - | - | (62 | ) | (62 | ) | |||||||||||
Balances, December 31, 2013 | $ | 80,000 | $ | 2,476 | $ | - | $ | 82,476 | |||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Note 11. Income Taxes | |||||||||||||
ASC 740, Income Taxes, defines the threshold for recognizing the benefits of tax return positions in the financial statements as "more-likely-than-not" to be sustained by the taxing authority. This section also provides guidance on the derecognition, measurement and classification of income tax uncertainties, along with any related interest and penalties, and includes guidance concerning accounting for income tax uncertainties in interim periods. As of December 31, 2013, Pinnacle Financial had no unrecognized tax benefits related to Federal or State income tax matters and does not anticipate any material increase or decrease in unrecognized tax benefits relative to any tax positions taken prior to December 31, 2013. As of December 31, 2013, Pinnacle Financial has accrued no interest and no penalties related to uncertain tax positions. | |||||||||||||
Income tax expense (benefit) attributable to continuing operations for each of the years ended December 31 is as follows (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current tax expense : | |||||||||||||
Federal | $ | 26,317 | $ | 19,096 | $ | 8,157 | |||||||
State | - | - | - | ||||||||||
Total current tax expense | 26,317 | 19,096 | 8,157 | ||||||||||
Deferred tax expense (benefit): | |||||||||||||
Federal | 240 | 485 | (19,646 | ) | |||||||||
State | 1,601 | 1,063 | (3,749 | ) | |||||||||
Total deferred tax expense (benefit) | 1,841 | 1,548 | (23,395 | ) | |||||||||
Total income tax expense (benefit) | $ | 28,158 | $ | 20,644 | $ | (15,238 | ) | ||||||
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||
Pinnacle Financial's income tax expense (benefit) differs from the amounts computed by applying the Federal income tax statutory rates of 35% to income (loss) before income taxes. A reconciliation of the differences for each of the years in the three-year period ended December 31, 2013 is as follows (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax expense at statutory rate | $ | 30,059 | $ | 21,885 | $ | 9,975 | |||||||
State excise tax expense (benefit), net of federal tax effect | 1,601 | 1,063 | (255 | ) | |||||||||
Tax-exempt securities | (2,603 | ) | (2,517 | ) | (2,655 | ) | |||||||
Federal tax credits | - | - | - | ||||||||||
Bank owned life insurance | (740 | ) | (322 | ) | (406 | ) | |||||||
Insurance premiums | (349 | ) | (243 | ) | (151 | ) | |||||||
Other items | 190 | 778 | 734 | ||||||||||
Deferred tax valuation allowance | - | - | (22,480 | ) | |||||||||
Income tax expense (benefit) | $ | 28,158 | $ | 20,644 | $ | (15,238 | ) | ||||||
Pinnacle Financial's effective tax rate for 2013 and 2012 differs from the Federal income tax statutory rate of 35% primarily due to a state excise tax expense, investments in bank qualified municipal securities, bank owned life insurance, and tax savings from our captive insurance subsidiary, PNFP Insurance, Inc. The effective tax rate for 2011 was impacted by the reversal of the deferred tax valuation allowance recorded in 2010. | |||||||||||||
The components of deferred income taxes included in other assets in the accompanying consolidated balance sheets at December 31, 2013 and 2012 are as follows (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Loan loss allowance | $ | 26,134 | $ | 26,777 | |||||||||
Loans | 914 | 423 | |||||||||||
Insurance | 732 | 691 | |||||||||||
Accrued liability for supplemental retirement agreements | 538 | 510 | |||||||||||
Restricted stock and stock options | 4,100 | 3,777 | |||||||||||
Net operating loss carryforward | 1,914 | 3,593 | |||||||||||
Other real estate owned | 2,231 | 3,222 | |||||||||||
Other deferred tax assets | 1,177 | 1,430 | |||||||||||
Total deferred tax assets | 37,740 | 40,423 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | 6,145 | 7,110 | |||||||||||
Core deposit intangible asset | 1,242 | 1,700 | |||||||||||
Securities | (1,704 | ) | 12,024 | ||||||||||
Cash flow hedge | 2,591 | - | |||||||||||
REIT dividends | 1,393 | 371 | |||||||||||
FHLB related liabilities | 1,316 | 1,724 | |||||||||||
Other deferred tax liabilities | 521 | 554 | |||||||||||
Total deferred tax liabilities | 11,504 | 23,483 | |||||||||||
Net deferred tax assets | $ | 26,236 | $ | 16,940 |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingent Liabilities [Abstract] | ' |
Commitments and Contingent Liabilities | ' |
Note 12. 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, 2013, these commitments amounted to $1.21 billion, of which approximately $183 million 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, 2013, these commitments amounted to $69.2 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 our customers default on their resulting obligation to us, Pinnacle Financial's maximum exposure to credit loss, without consideration of collateral, is represented by the contractual amount of those instruments. At December 31, 2013, Pinnacle Financial had accrued $1.37 million for the inherent risks associated with off balance sheet commitments. | |
During the fourth quarter of 2011, a customer of Pinnacle Bank filed a putative class action lawsuit (styled John Higgins, et al, v. Pinnacle Financial Partners, Inc., d/b/a Pinnacle National Bank) in Davidson County, Tennessee Circuit Court against Pinnacle Bank and Pinnacle Financial, on his own behalf, as well as on behalf of a purported class of Pinnacle Bank's customers within the State of Tennessee alleging that Pinnacle Bank's method of ordering debit card transactions had caused customers of Pinnacle Bank to incur higher overdraft charges than had a different method been used. Pinnacle Financial and Pinnacle bank reached a tentative settlement with the plaintiff during the second quarter of 2013. Although the settlement has not been finalized, the court has preliminarily approved the settlement. Pinnacle Financial does not believe that any liability arising from this legal matter will have a material adverse effect on Pinnacle Financial's consolidated financial condition, operating results or cash flows. | |
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, 2013 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, 2013 | |
Salary Deferral Plan [Abstract] | ' |
Salary Deferral Plans | ' |
Note 13. 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 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 2013, 2012, and 2011. 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, 2013 was approximately $2,241,000, $2,185,000 and $1,887,000, respectively, and is included in the accompanying consolidated statements of operations in salaries and employee benefits expense. | |
Prior to the merger with Pinnacle Financial on March 15, 2006, Cavalry had adopted nonqualified noncontributory supplemental retirement agreements (the Cavalry SRAs) for certain directors and executive officers of Cavalry. Cavalry invested in and, as a result of the Cavalry merger, Pinnacle Financial is the owner of single premium life insurance policies on the life of each participant and is the beneficiary of the policy value. When a participant retires, the accumulated gains on the policy allocated to such participant, if any, will be distributed to the participant in equal installments for 15 years (the Primary Benefit). In addition, any annual gains after the retirement date of the participant will be distributed on an annual basis for the lifetime of the participant (the Secondary Benefit). As a result of the merger with Pinnacle Financial, all participants became fully vested in the Cavalry SRAs. No new participants have been added to the Cavalry SRAs following the merger with Pinnacle Financial. | |
The Cavalry SRAs also provide the participants with death benefits, which is a percentage of the net death proceeds for the policy, if any, applicable to the participant. The death benefits are not taxable to Pinnacle Financial or the participant's beneficiary. | |
Pinnacle Financial recognized approximately $178,000, $220,000, and $330,000 in compensation expense in each year of the three-year period ended December 31, 2013 related to the Cavalry SRAs. During 2007, Pinnacle Financial offered a settlement to all participants in the Cavalry SRAs with eleven participants accepting the settlement. Two individuals remain as participants in the Cavalry SRAs. At December 31, 2013, 2012 and 2011, included in other liabilities is $1,373,000, $1,301,000, and $1,200,000, respectively, which represents the net present value of the future obligation owed the two remaining participants in the Cavalry SRAs using a discount rate of 5% at December 31, 2013, 2012 and 2011. |
Stock_Options_Stock_Appreciati
Stock Options, Stock Appreciation Rights, Restricted Shares and Salary Stock Units | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Stock Options, Stock Appreciation Rights, Restricted Shares and Salary Stock Units [Abstract] | ' | ||||||||||||
Stock Options, Stock Appreciation Rights, Restricted Shares and Salary Stock Units | ' | ||||||||||||
Note 14. Stock Options, Stock Appreciation Rights and Restricted Shares | |||||||||||||
Pinnacle Financial has two equity incentive plans under which it has granted stock options to its employees to purchase common stock at or above the fair market value on the date of grant and granted restricted share, restricted stock unit and salary stock unit awards to employees and directors. As a result of an amendment to the 2004 Plan approved by stockholders on April 17, 2012, total shares remaining available for issuance under the 2004 Equity Incentive Plan were increased, and at December 31, 2013, totaled approximately 476,000. | |||||||||||||
On November 30, 2007 and in connection with its merger with Mid-America, Pinnacle Financial assumed several equity incentive plans, including the Mid-America Bancshares, Inc. 2006 Omnibus Equity Incentive Plan (the Mid-America Plans). All options and stock appreciation rights granted under the Mid-America Plans were fully vested prior to Pinnacle Financial's merger with Mid-America and expire at various dates between June 2011 and July 2017. In connection with the merger, all options and stock appreciation rights to acquire Mid-America common stock were converted to options or stock appreciation rights, as applicable, to acquire Pinnacle Financial common stock at the 0.4655 exchange ratio. The exercise price of the outstanding options and stock appreciation rights under the Mid-America Plans were adjusted using the same exchange ratio with the exercise price also being reduced by $1.50 per share. All other terms of the Mid-America options and stock appreciation rights were unchanged. At December 31, 2013, there were 58,013 Pinnacle shares which could be acquired by the participants in the Mid-America Plans at exercise prices that ranged between $12.89 per share and $20.41 per share. At December 31, 2013, there were approximately 73,000 shares available for issue under the Mid-America Plans to associates of Pinnacle Financial that were associates of Mid-America or its affiliates at the time of the merger. | |||||||||||||
Common Stock Options and Stock Appreciation Rights | |||||||||||||
As of December 31, 2013, of the approximately 997,000 stock options and 5,500 stock appreciation rights outstanding, 246,000 options were granted with the intention to be incentive stock options qualifying under Section 422 of the Internal Revenue Code for favorable tax treatment to the option holder while 757,000 options would be deemed non-qualified stock options or stock appreciation rights and thus not subject to favorable tax treatment to the option holder. Favorable treatment generally refers to the recipient of the award not having to report ordinary income at the date of exercise. All stock options granted under the Pinnacle Financial equity incentive plans vest in equal increments over five years from the date of grant and are exercisable over a period of ten years from the date of grant. All stock options and stock appreciation rights granted under the Cavalry Plan and Mid-America Plans were fully-vested at the date of those mergers. | |||||||||||||
A summary of stock option and stock appreciation right activity within the equity incentive plans during each of the years in the three-year period ended December 31, 2013 and information regarding expected vesting, contractual terms remaining, intrinsic values and other matters was as follows: | |||||||||||||
Number | Weighted- | Weighted- | Aggregate | ||||||||||
Average | Average | Intrinsic | |||||||||||
Exercise | Contractual | Value (1) | |||||||||||
Price | Remaining Term | (000's) | |||||||||||
(in years) | |||||||||||||
Outstanding at December 31, 2010 | 1,795,785 | $ | 19.49 | ||||||||||
Granted | - | - | |||||||||||
Stock options exercised | (163,829 | ) | 6.2 | ||||||||||
Stock appreciation rights exercised (2) | - | 15.6 | |||||||||||
Forfeited | (50,918 | ) | 23.44 | ||||||||||
Outstanding at December 31, 2011 | 1,581,038 | $ | 20.81 | ||||||||||
Granted | - | - | |||||||||||
Stock options exercised | (245,201 | ) | 6.78 | ||||||||||
Stock appreciation rights exercised (2) | (348 | ) | 15.6 | ||||||||||
Forfeited | (17,108 | ) | 25.9 | ||||||||||
Outstanding at December 31, 2012 | 1,318,381 | $ | 23.36 | ||||||||||
Granted | - | - | |||||||||||
Stock options exercised | (279,534 | ) | 14.07 | ||||||||||
Stock appreciation rights exercised (2) | (1,732 | ) | 15.6 | ||||||||||
Forfeited | (34,615 | ) | 29.31 | ||||||||||
Outstanding at December 31, 2013 | 1,002,500 | $ | 25.77 | 2.48 | $7,097 | ||||||||
Options exercisable at December 31, 2013 | 1,002,500 | $ | 25.77 | 2.48 | $7,097 | ||||||||
-1 | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of Pinnacle Financial common stock of $32.53 per common share at December 31, 2013 for the 931,425 options and stock appreciation rights that were in-the-money at December 31, 2013. | ||||||||||||
-2 | The 348 stock appreciation rights exercised during 2012 settled in 28 shares of Pinnacle Financial common stock. The 1,732 stock appreciation rights exercised during 2013 settled in 471 shares of Pinnacle Financial common stock. | ||||||||||||
During the year ended December 31, 2013, approximately 32,671 option awards vested at an average exercise price of $21.51. Those awards which vested had no intrinsic value at the time of vesting. During each of the years in the three-year period ended December 31, 2013, the aggregate intrinsic value of options and stock appreciation rights exercised under Pinnacle Financial's equity incentive plans was $3,622,000, $2,501,000 and $1,330,000, respectively, determined as of the date of option exercise. | |||||||||||||
As of December 31, 2013, there was no unrecognized compensation cost related to unvested stock options granted under our equity incentive plans. | |||||||||||||
Pinnacle Financial adopted ASC 718-20 Compensation using the modified prospective transition method on January 1, 2006. Accordingly, during the three-years ended December 31, 2013, Pinnacle Financial recorded stock-based compensation expense using the Black-Scholes valuation model for awards granted prior to, but not yet vested, as of January 1, 2006 and for all stock-based awards granted after January 1, 2006, based on fair value estimates using the Black-Scholes valuation model. For these awards, Pinnacle Financial has recognized compensation expense using a straight-line amortization method. As ASC 718-20 requires that stock-based compensation expense be based on awards that are ultimately expected to vest, stock-based compensation for the years ended December 31, 2013, 2012, and 2011 has been reduced for estimated forfeitures. The impact on the results of operations (compensation and employee benefits expense) and earnings per share of recording stock-based compensation in accordance with ASC 718-20 (related to stock option awards) for the three-year period ended December 31, 2013 was as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Non-qualified stock options | |||||||||||||
Stock-based compensation expense | $ | 12,470 | $ | 394,466 | $ | 1,196,059 | |||||||
Income tax benefit | 4,892 | 154,749 | 469,214 | ||||||||||
Stock-based compensation expense after income tax benefit | $ | 7,578 | $ | 239,717 | $ | 726,845 | |||||||
Impact on per share results from stock-based compensation: | |||||||||||||
Basic | $ | 0 | $ | 0.01 | $ | 0.02 | |||||||
Fully diluted | $ | 0 | $ | 0.01 | $ | 0.02 | |||||||
There have been no options granted by Pinnacle Financial since 2008. | |||||||||||||
Restricted Shares | |||||||||||||
Additionally, Pinnacle Financial's 2004 Equity Incentive Plan provides for the granting of restricted share awards and other performance or market-based awards. There were no market-based awards or stock appreciation rights outstanding as of December 31, 2013 under the 2004 Equity Incentive Plan. During the three-year period ended December 31, 2013, Pinnacle Financial awarded 361,966 shares of restricted stock in 2011, 156,645 shares of restricted stock in 2012 and 164,602 shares of restricted stock in 2013 to certain Pinnacle Financial associates and outside directors. Also, Pinnacle Financial issued 225,228 restricted share units in 2012. The restricted share units converted to 193,189 restricted share awards in 2013. | |||||||||||||
A summary of activity for unvested restricted share awards for the years ended December 31, 2013, 2012, and 2011 follows: | |||||||||||||
Number | Grant Date Weighted-Average Cost | ||||||||||||
Unvested at December 31, 2010 | 640,394 | $ | 17.63 | ||||||||||
Shares awarded | 361,966 | 13.38 | |||||||||||
Restrictions lapsed and shares released to associates/directors | (90,406 | ) | 17.62 | ||||||||||
Shares forfeited | (62,251 | ) | 20.66 | ||||||||||
Unvested at December 31, 2011 | 849,703 | $ | 15.61 | ||||||||||
Shares awarded | 156,645 | 16.48 | |||||||||||
Restrictions lapsed and shares released to associates/directors | (211,913 | ) | 16.28 | ||||||||||
Shares forfeited | (54,526 | ) | 18.23 | ||||||||||
Unvested at December 31, 2012 | 739,909 | $ | 15.45 | ||||||||||
Shares awarded | 164,602 | 21.78 | |||||||||||
Conversion of restricted share units to restricted share awards | 193,189 | 21.51 | |||||||||||
Restrictions lapsed and shares released to associates/directors | (221,325 | ) | 15.97 | ||||||||||
Shares forfeited | (54,680 | ) | 15.3 | ||||||||||
Unvested at December 31, 2013 | 821,695 | $ | 19.18 | ||||||||||
Pinnacle Financial grants restricted share awards to associates, executive management and outside directors with a combination of time and performance 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, 2013. The table below reflects the life-to-date activity for these awards: | |||||||||||||
Grant | Group(1) | Vesting | Shares | Restrictions Lapsed and shares released to participants(1) | Shares Withheld | Shares Forfeited by participants | Shares Unvested | ||||||
Year | Period in years | awarded | for taxes by participants(1) | ||||||||||
Time Based Awards (2) | |||||||||||||
2011 | Associates | 5 | 144,145 | 40,988 | 13,396 | 14,442 | 75,319 | ||||||
2012 | Associates | 5 | 141,665 | 19,617 | 7,156 | 11,200 | 103,692 | ||||||
2013 | Associates | 5 | 150,125 | - | - | 3,675 | 146,450 | ||||||
Performance Based Awards (3) | |||||||||||||
2011 | Leadership team (4) | 10 | 152,093 | 32,679 | 11,774 | 5,173 | 102,467 | ||||||
2011 | Leadership team (5) | 3 | 29,595 | 7,162 | 2,701 | - | 19,732 | ||||||
2011 | Leadership team (5) | 3 | 21,097 | 9,746 | 3,285 | 1,883 | 6,183 | ||||||
2013 | Leadership team(6) | 5 | 193,189 | - | - | - | 193,189 | ||||||
Outside Director Awards (7) | |||||||||||||
2011 | Outside directors | 1 | 15,036 | 10,339 | 2,191 | 2,506 | - | ||||||
2012 | Outside directors | 1 | 14,980 | 12,730 | 2,250 | - | - | ||||||
2013 | Outside directors | 1 | 14,477 | 1,129 | - | - | 13,348 | ||||||
-1 | Groups include our employees (referred to as associates above), our executive managers (referred to as our Leadership Team above) and our outside directors. Included in the Leadership Team awards noted above are awards to our named executive officers. When the restricted shares are awarded, a participant receives voting rights with respect to the shares, but is not able to transfer the shares other than to Pinnacle Financial in satisfaction of withholding tax obligations until the later of the date that the forfeiture restrictions have lapsed and, for awards issued prior to the redemption of the preferred stock issued under the CPP, the later of the date that the forfeiture restrictions lapse and the date we redeemed the remaining outstanding shares of Series A preferred stock issued to the US Treasury pursuant to the CPP, which was completed on June 21, 2012. Once the forfeiture restrictions lapse, the participant is taxed on the value of the award and may elect to sell shares to pay the applicable income taxes associated with the award or have these shares remitted to Pinnacle Financial. | ||||||||||||
-2 | These shares vest in equal annual installments on the first five anniversary dates of the grant. | ||||||||||||
-3 | The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain earnings and soundness targets over each year of the subsequent vesting period (or alternatively, the cumulative vesting period), excluding the impact of any merger related expenses. For those grants with a 10 year vesting period, the vesting period for an individual award is equal to ten years or the number of years remaining before an associate reaches the age of 65, whichever is less. | ||||||||||||
-4 | These awards include a provision that the shares do not vest if Pinnacle Financial is not profitable for the fiscal year immediately preceding the vesting date. | ||||||||||||
-5 | The forfeiture restrictions on these restricted share awards lapse in installments as follows: 66.6% on the second anniversary date should Pinnacle Financial achieve certain earnings and soundness targets, and 33.4% on the third anniversary date should Pinnacle Financial achieve certain earnings and soundness targets in each of these periods (or, alternatively, the cumulative three-year period). | ||||||||||||
-6 | The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve soundness targets over each year of the subsequent vesting period. | ||||||||||||
-7 | Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapsed on the one year anniversary date of the award based on each individual board member meeting his/her attendance goals for the various board and board committee meetings to which each member was scheduled to attend. | ||||||||||||
Compensation expense associated with the performance based restricted share awards is recognized over the time period that the restrictions associated with the awards are anticipated to lapse based on a schedule consistent with the nature of the award. Compensation expense associated with the time based 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. | |||||||||||||
A summary of compensation expense, net of the impact of income taxes, related to restricted stock awards for the three-year period ended December 31, 2013, follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Restricted stock expense (1) | $ | 4,069,661 | $ | 3,270,028 | $ | 3,239,677 | |||||||
Income tax benefit | 1,596,528 | 1,282,832 | 1,270,925 | ||||||||||
Restricted stock expense, net of income tax benefit | $ | 2,473,133 | $ | 1,987,196 | $ | 1,968,752 | |||||||
Impact on per share results from restricted stock expense: | |||||||||||||
Basic | $ | 0.07 | $ | 0.06 | $ | 0.06 | |||||||
Fully diluted | $ | 0.07 | $ | 0.06 | $ | 0.06 | |||||||
-1 | During the year ended December 31, 2011, $149,000 in previously expensed compensation associated with certain traunches of performance-based restricted share awards was reversed when Pinnacle Financial determined that the performance targets required to vest the awards, which were previously expected to be met, were unlikely to be achieved. | ||||||||||||
Restricted Share Units | |||||||||||||
Pinnacle Financial granted 186,943 restricted share units to the senior executive officers and the Leadership Team in the first quarter of 2013. These restricted share units will be settled with the issuance of 186,943 restricted shares upon the filing of Pinnacle Financial's 2013 Annual Report on Form 10-K. The number of restricted shares that were issued in settlement of the restricted share units was determined based upon the achievement of certain predetermined profitability goals for 2013 that were established on January 11, 2013 by the HRCC. The number of restricted shares issuable in settlement of these restricted share units ranged between 0% and 100% based on the level of 2013 profitability. Once converted to restricted share awards, the forfeiture restrictions on the number of restricted shares issued in settlement of these restricted share units will lapse in 20% increments over the following five years based on the achievement of soundness thresholds in each respective year as set by the HRCC in January 2014. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Derivative Instruments [Abstract] | ' | |||||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||||
Note 15. 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 enters into interest rate swaps (swaps) to facilitate customer transactions and meet their financing needs. Upon entering into these instruments to meet customer needs, Pinnacle Financial enters into offsetting positions in order to minimize the risk. These swaps qualify as derivatives, but are not designated as hedging instruments. All of the derivatives held at December 31, 2013 and 2012 related to these customer swaps. | ||||||||||||||||||||
Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. As such, Pinnacle Financial has recorded a credit valuation adjustment for counter-party credit risk. When the fair value of a derivative instrument contract is positive, this generally indicates that the counter party or customer owes Pinnacle Financial, and results in credit risk to Pinnacle Financial. When the fair value of a derivative instrument contract is negative, Pinnacle Financial owes the customer or counterparty and therefore, Pinnacle Financial has no credit risk. | ||||||||||||||||||||
A summary of Pinnacle Financial's interest rate swaps to facilitate customer transactions as of December 31, 2013 is included in the following table (in thousands): | ||||||||||||||||||||
At December 31, 2013 | At December 31, 2012 | |||||||||||||||||||
Notional | Estimated Fair Value | Notional Amount | Estimated Fair Value | |||||||||||||||||
Amount | ||||||||||||||||||||
Interest rate swap agreements: | ||||||||||||||||||||
Pay fixed / receive variable swaps | $ | 294,486 | $ | 13,296 | $ | 236,377 | $ | 16,132 | ||||||||||||
Pay variable / receive fixed swaps | 294,486 | (13,670 | ) | 236,377 | (16,366 | ) | ||||||||||||||
Total | $ | 588,972 | $ | (374 | ) | $ | 472,754 | $ | (234 | ) | ||||||||||
During 2013, Pinnacle Financial entered into a forward cash flow hedge relationship to manage our future interest rate exposure. The hedging strategy converts the LIBOR based variable interest rate on forecasted borrowings to a fixed interest rate and protects Pinnacle Financial from floating interest rate variability. The terms of the individual contracts within the relationship are as follows (in thousands): | ||||||||||||||||||||
Forecasted | Variable | Fixed | Term | Asset/ | Unrealized Gain in Accumulated Other Comprehensive Income | |||||||||||||||
Notional | Interest | Interest | (Liabilities) | |||||||||||||||||
Amount | Rate (1) | Rate(1) | ||||||||||||||||||
Interest Rate Swap | $ | 33,000 | 3 month LIBOR | 1.428 | % | April 2015-April 2018 | $ | 463 | $ | 281 | ||||||||||
Interest Rate Swap | 33,000 | 3 month LIBOR | 1.857 | % | Oct. 2015-April 2019 | 837 | 509 | |||||||||||||
Interest Rate Swap | 33,000 | 3 month LIBOR | 1.996 | % | Oct. 2015-Oct. 2019 | 1,007 | 612 | |||||||||||||
Interest Rate Swap | 33,000 | 3 month LIBOR | 2.265 | % | April 2016-April 2020 | 1,172 | 712 | |||||||||||||
Interest Rate Swap | 33,000 | 3 month LIBOR | 2.646 | % | April 2016-April 2022 | 1,818 | 1,105 | |||||||||||||
Interest Rate Swap | 33,000 | 3 month LIBOR | 2.523 | % | Oct. 2016-Oct. 2020 | 1,307 | 795 | |||||||||||||
$ | 198,000 | $ | 6,604 | $ | 4,014 | |||||||||||||||
________ | ||||||||||||||||||||
-1 | Pinnacle Financial will pay the fixed interest rate and the counterparties pay Pinnacle Financial the variable rate. | |||||||||||||||||||
The cash flow hedges were determined to be fully effective during the period presented. And therefore, no amount of ineffectiveness has been included in net income. The aggregate fair value of the swaps is recorded in other assets with changes in fair value recorded in accumulated other comprehensive (loss) income, net of tax. If a hedge was deemed to be ineffective, the amount included in accumulated other comprehensive (loss) income would be reclassified to current earnings. The hedge would no longer be considered effective if a portion of the swap becomes ineffective, the forecasted transaction is no longer probable or Pinnacle Financial discontinues hedge accounting. Pinnacle Financial expects the hedges to remain fully effective during the remaining terms of the swaps. Pinnacle Financial does not expect any amounts to be reclassified from accumulated other comprehensive (loss) income related to these swaps over the next twelve months. |
Employment_Contracts
Employment Contracts | 12 Months Ended |
Dec. 31, 2013 | |
Employment Contracts [Abstract] | ' |
Employment Contracts | ' |
Note 16. 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 Chief Administrative Officer 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 disability, cause, without cause and other events. 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 is 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_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Note 17. Related Party Transactions | |
A local public relations company, of which one of Pinnacle Financial's directors is a principal, provides various services for Pinnacle Financial. For each of the years in the three-year period ended December 31, 2013, Pinnacle Financial incurred approximately $72,000, $78,000, and $242,000, respectively, in expense for services rendered by this public relations company. | |
Also see Note 6- "Loans and Allowance for Loan Losses", concerning loans and other extensions of credit to certain directors, officers, and their related entities and individuals and Note 13 – Salary Deferral Plans regarding supplemental retirement agreement obligations to two directors who were formerly directors of Cavalry. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||
Note 18. Fair Value of Financial Instruments | |||||||||||||||||||||
Nonaccrual loans – A loan is classified as nonaccrual when it is probable Pinnacle Financial will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Nonaccrual loans are measured based on the present value of expected payments using the loan's original effective rate as the discount rate, the loan's observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. If the recorded investment in the nonaccrual loan exceeds the measure of fair value, a valuation allowance may be established as a component of the allowance for loan losses or the expense is recognized as a charge-off. Nonaccrual loans are classified within Level 3 of the hierarchy due to the unobservable inputs used in determining their fair value such as collateral values, expected cash flows, and the borrower's underlying financial condition. | |||||||||||||||||||||
Other equity investments – Included in other investments are other equity investments in certain nonpublic private equity funds. The valuation of nonpublic private equity fund investments requires significant 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 equity investments are adjusted either upwards or downwards from the transaction price to reflect expected exit values as evidenced by financing and sale transactions with third parties, or when determination of a valuation adjustment is confirmed through ongoing reviews by senior investment managers. A variety of factors are reviewed and monitored to assess positive and negative changes in valuation including, but not limited to, current operating performance and future expectations of the particular investment, industry valuations of comparable public companies and changes in market outlook and the third-party financing environment over time. In determining valuation adjustments resulting from the investment review process, emphasis is placed on current company performance and market conditions. These investments are included in Level 3 of the valuation hierarchy as these funds are not widely traded and the underling investments of such funds are often privately-held and/or start-up companies for which market-values are not readily available. | |||||||||||||||||||||
Other real estate owned – Other real estate owned (OREO) represents real estate foreclosed upon, or acquired through deed in lieu of foreclosure, by Pinnacle Bank through loan defaults by customers. Substantially all of these amounts relate to lots, homes and development projects that are either completed or are in various stages of construction for which Pinnacle Financial believes it has adequate collateral. Upon foreclosure, the property is recorded at the lower of cost or fair value, based on appraised value, less selling costs estimated as of the date acquired with any loss recognized as a charge-off through the allowance for loan losses. Additional OREO losses for subsequent valuation downward adjustments are determined on a specific property basis and are included as a component of noninterest expense along with holding costs. Any gains or losses realized at the time of disposal are also reflected in noninterest expense, as applicable. OREO is included in Level 3 of the valuation hierarchy due to the lack of observable market inputs into the determination of fair value. Appraisal values are property-specific and sensitive to the changes in the overall economic environment. | |||||||||||||||||||||
Other assets – Included in other assets are certain assets carried at fair value, including interest rate swap agreements and the cash flow hedge relationship Pinnacle Financial entered into during the second quarter of 2013, as discussed more fully in footnote 15 above. 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 is determined using the income approach by comparing the discounted fixed rate cash flows with the discounted variable rate cash flows. 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. | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||
Other liabilities – Pinnacle Financial has certain liabilities carried at fair value including certain interest rate swap agreements. 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. | |||||||||||||||||||||
Nonaccrual loans – A loan is classified as nonaccrual when it is probable Pinnacle Financial will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Nonaccrual loans are measured based on the present value of expected payments using the loan's original effective rate as the discount rate, the loan's observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. If the recorded investment in the nonaccrual loan exceeds the measure of fair value, a valuation allowance may be established as a component of the allowance for loan losses or the expense is recognized as a charge-off. Nonaccrual loans are classified within Level 3 of the hierarchy due to the unobservable inputs used in determining their fair value such as collateral values, expected cash flows, and the borrower's underlying financial condition. | |||||||||||||||||||||
Other equity investments – Included in other investments are other equity investments in certain nonpublic private equity funds. The valuation of nonpublic private equity fund investments requires significant 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 equity investments are adjusted either upwards or downwards from the transaction price to reflect expected exit values as evidenced by financing and sale transactions with third parties, or when determination of a valuation adjustment is confirmed through ongoing reviews by senior investment managers. A variety of factors are reviewed and monitored to assess positive and negative changes in valuation including, but not limited to, current operating performance and future expectations of the particular investment, industry valuations of comparable public companies and changes in market outlook and the third-party financing environment over time. In determining valuation adjustments resulting from the investment review process, emphasis is placed on current company performance and market conditions. These investments are included in Level 3 of the valuation hierarchy as these funds are not widely traded and the underling investments of such funds are often privately-held and/or start-up companies for which market-values are not readily available. | |||||||||||||||||||||
Other real estate owned – Other real estate owned (OREO) represents real estate foreclosed upon, or acquired through deed in lieu of foreclosure, by Pinnacle Bank through loan defaults by customers. Substantially all of these amounts relate to lots, homes and development projects that are either completed or are in various stages of construction for which Pinnacle Financial believes it has adequate collateral. Upon foreclosure, the property is recorded at the lower of cost or fair value, based on appraised value, less selling costs estimated as of the date acquired with any loss recognized as a charge-off through the allowance for loan losses. Additional OREO losses for subsequent valuation downward adjustments are determined on a specific property basis and are included as a component of noninterest expense along with holding costs. Any gains or losses realized at the time of disposal are also reflected in noninterest expense, as applicable. OREO is included in Level 3 of the valuation hierarchy due to the lack of observable market inputs into the determination of fair value. Appraisal values are property-specific and sensitive to the changes in the overall economic environment. | |||||||||||||||||||||
The following tables present the financial instruments carried at fair value as of December 31, 2013 and 2012, by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands): | |||||||||||||||||||||
31-Dec-13 | 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 | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||
U.S. government agency securities | $ | 103,873 | $ | - | $ | 103,873 | $ | - | |||||||||||||
Mortgage-backed securities | 412,936 | - | 412,936 | - | |||||||||||||||||
State and municipal securities | 148,411 | - | 148,411 | - | |||||||||||||||||
Asset-backed securities | 17,007 | 17,007 | |||||||||||||||||||
Corporate notes and other | 11,229 | - | 11,229 | - | |||||||||||||||||
Total investment securities available-for-sale | 693,456 | - | 693,456 | $ | - | ||||||||||||||||
Alternative investments | 6,701 | - | - | 6,701 | |||||||||||||||||
Other assets | 19,900 | - | 19,900 | - | |||||||||||||||||
Total assets at fair value | $ | 720,057 | $ | - | $ | 713,356 | $ | 6,701 | |||||||||||||
Other liabilities | $ | 13,670 | $ | - | $ | 13,670 | $ | - | |||||||||||||
Total liabilities at fair value | $ | 13,670 | $ | - | $ | 13,670 | $ | - | |||||||||||||
31-Dec-12 | |||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||
U.S. government agency securities | $ | 110,452 | $ | - | $ | 110,452 | $ | - | |||||||||||||
Mortgage-backed securities | 375,651 | - | 375,651 | - | |||||||||||||||||
State and municipal securities | 191,727 | - | 191,727 | - | |||||||||||||||||
Asset-backed securities | 17,352 | 17,352 | - | ||||||||||||||||||
Corporate notes and other | 11,396 | - | 11,396 | - | |||||||||||||||||
Total investment securities available-for-sale | 706,578 | - | 706,578 | - | |||||||||||||||||
Alternative investments | 4,214 | - | - | 4,214 | |||||||||||||||||
Other assets | 16,599 | - | 16,132 | 467 | |||||||||||||||||
Total assets at fair value | $ | 727,391 | $ | - | $ | 722,710 | $ | 4,681 | |||||||||||||
Other liabilities | $ | 16,366 | $ | - | $ | 16,366 | $ | - | |||||||||||||
Total liabilities at fair value | $ | 16,366 | $ | - | $ | 16,366 | $ | - | |||||||||||||
The following table presents assets measured at fair value on a nonrecurring basis as of December 31, 2013 and 2012 (in thousands): | |||||||||||||||||||||
31-Dec-13 | 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 | Total losses for the period ended | ||||||||||||||||
(Level 1) | (Level 2) | parameters | |||||||||||||||||||
(Level 3) | |||||||||||||||||||||
Other real estate owned | $ | 15,226 | $ | - | $ | - | $ | 15,226 | $ | (2,258 | ) | ||||||||||
Nonaccrual loans, net (1) | 16,996 | - | - | 16,996 | (2,921 | ) | |||||||||||||||
Total | $ | 32,222 | $ | - | $ | - | $ | 32,222 | $ | (5,179 | ) | ||||||||||
31-Dec-12 | |||||||||||||||||||||
Other real estate owned | $ | 18,580 | $ | - | $ | - | $ | 18,580 | $ | (5,428 | ) | ||||||||||
Nonaccrual loans, net (1) | 21,059 | - | - | 21,059 | (4,745 | ) | |||||||||||||||
Total | $ | 39,639 | $ | - | $ | - | $ | 39,639 | $ | (10,173 | ) | ||||||||||
-1 | Amount is net of a valuation allowance of $1.2 million and $1.8 million at December 31, 2013 and 2012, respectively, as required by ASC 310-10, "Receivables." | ||||||||||||||||||||
In the case of the bond portfolio, Pinnacle Financial monitors the valuation technique utilized by various pricing agencies 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, 2013, there were no transfers between Levels 1, 2 or 3. | |||||||||||||||||||||
The table below includes a rollforward of the balance sheet amounts for the year ended December 31, 2013 (including the change in fair value) for financial instruments classified by Pinnacle Financial within Level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources), the gains and losses in the table below include 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, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Other | Other liabilities | Other | Other liabilities | ||||||||||||||||||
assets | assets | ||||||||||||||||||||
Fair value, January 1 | $ | 4,681 | $ | - | $ | 3,899 | $ | - | |||||||||||||
Total net realized losses included in income | (344 | ) | - | (102 | ) | - | |||||||||||||||
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at December 31 | - | - | - | - | |||||||||||||||||
Purchases | 2,517 | - | 1,287 | - | |||||||||||||||||
Issuances | - | - | - | - | |||||||||||||||||
Settlements | (153 | ) | - | (403 | ) | - | |||||||||||||||
Transfers out of Level 3 | - | - | - | - | |||||||||||||||||
Fair value, December 31 | $ | 6,701 | $ | - | $ | 4,681 | $ | - | |||||||||||||
Total realized losses included in income related to financial assets and liabilities still on the consolidated balance sheet at December 31 | $ | (344 | ) | $ | - | $ | (102 | ) | $ | - | |||||||||||
The following methods and assumptions were used by Pinnacle Financial in estimating its fair value disclosures for financial instruments that are not measured at fair value. In cases where quoted market prices are not available, fair values are based on estimates using discounted cash flow models. Those models are significantly affected by the assumptions used, including the discount rates, estimates of future cash flows and borrower creditworthiness. The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2013 and 2012, respectively. Such amounts have not been revalued for purposes of these consolidated financial statements since those dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. | |||||||||||||||||||||
Held-to-maturity securities - Estimated fair values for investment securities are based on quoted market prices where available. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs or quoted prices of securities with similar characteristics. | |||||||||||||||||||||
Loans - The fair value of Pinnacle Financial's loan portfolio includes a credit risk factor in the determination of the fair value of its loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. Pinnacle Financial's loan portfolio is initially fair valued using a segmented approach. Pinnacle Financial divides its loan portfolio into the following categories: variable rate loans, impaired loans and all other loans. The results are then adjusted to account for credit risk. | |||||||||||||||||||||
For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. For other loans, fair values are estimated using discounted cash flow models, using current market interest rates offered for loans with similar terms to borrowers of similar credit quality. The values derived from the discounted cash flow approach for each of the above portfolios are then further discounted to incorporate credit risk to determine the exit price. | |||||||||||||||||||||
Mortgage loans held-for-sale - Mortgage loans held-for-sale are carried at the lower of cost or fair value. The estimate of fair value is based on pricing models and other information. | |||||||||||||||||||||
Deposits, Securities sold under agreements to repurchase, Federal Home Loan Bank (FHLB) advances, Subordinated debt and other borrowings - The carrying amounts of demand deposits, savings deposits, securities sold under agreements to repurchase, floating rate advances from the Federal Home Loan Bank, floating rate subordinated debt and other borrowings, and floating rate loans approximate their fair values. Fair values for certificates of deposit, fixed rate advances from the Federal Home Loan Bank and fixed rate subordinated debt are estimated using discounted cash flow models, using current market interest rates offered on certificates, advances and other borrowings with similar remaining maturities. For fixed rate subordinated debt, the maturity is assumed to be as of the earliest date that the indebtedness will be repriced. | |||||||||||||||||||||
Off-Balance Sheet Instruments - The fair values of Pinnacle Financial's off-balance-sheet financial instruments are based on fees charged to enter into similar agreements. However, commitments to extend credit do not represent a significant value to Pinnacle Financial until such commitments are funded. | |||||||||||||||||||||
The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at December 31, 2013 and 2012. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as non-interest bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. | |||||||||||||||||||||
(in thousands) | Carrying/ | Estimated | Quoted market prices in an active market | Models with significant observable market parameters | Models with significant unobservable market | ||||||||||||||||
31-Dec-13 | Notional | Fair Value (1) | (Level 1) | (Level 2) | parameters | ||||||||||||||||
Amount | (Level 3) | ||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Securities held-to-maturity | $ | 39,796 | $ | 38,817 | $ | - | $ | 38,817 | $ | - | |||||||||||
Loans, net | 4,076,524 | 4,021,675 | - | - | 4,021,675 | ||||||||||||||||
Mortgage loans held-for-sale | 12,850 | 12,999 | - | 12,999 | - | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits and securities sold under agreements to repurchase | 4,603,938 | 4,378,805 | - | - | 4,378,805 | ||||||||||||||||
Federal Home Loan Bank advances | 90,637 | 90,652 | - | - | 90,652 | ||||||||||||||||
Subordinated debt and other borrowings | 98,658 | 73,083 | - | - | 73,083 | ||||||||||||||||
Off-balance sheet instruments: | |||||||||||||||||||||
Commitments to extend credit (2) | 1,206,528 | 1,040 | - | - | 1,040 | ||||||||||||||||
Standby letters of credit (3) | 69,231 | 331 | - | - | 331 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Securities held-to-maturity | $ | 575 | $ | 583 | $ | - | $ | 583 | $ | - | |||||||||||
Loans, net | 3,642,745 | 3,358,435 | - | - | 3,358,435 | ||||||||||||||||
Mortgage loans held for sale | 41,195 | 42,425 | - | 42,425 | - | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits and securities sold under agreements to repurchase | 4,129,855 | 4,084,314 | - | - | 4,084,314 | ||||||||||||||||
Federal Home Loan Bank advances | 75,850 | 76,350 | - | - | 76,350 | ||||||||||||||||
Subordinated debt and other borrowings | 106,158 | 83,862 | - | - | 83,862 | ||||||||||||||||
Off-balance sheet instruments: | |||||||||||||||||||||
Commitments to extend credit (2) | 1,030,723 | 1,594 | - | - | 1,594 | ||||||||||||||||
Standby letters of credit (3) | 74,679 | 304 | - | - | 304 | ||||||||||||||||
-1 | Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. | ||||||||||||||||||||
-2 | At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at December 31, 2013 and 2012, Pinnacle Financial included in other liabilities $1.0 million and $1.6 million, respectively, representing the inherent risks associated with these off-balance sheet commitments. | ||||||||||||||||||||
-3 | At December 31, 2013 and 2012, the fair value of Pinnacle Financial's standby letters of credit was $331,000 and $304,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit, which were priced at market when issued, and is included in the consolidated balance sheet of Pinnacle Financial and is believed to approximate fair value. This fair value will decrease over time as the existing standby letters of credit approach their expiration dates. |
Other_borrowings
Other borrowings | 12 Months Ended | ||
Dec. 31, 2013 | |||
Other borrowings [Abstract] | ' | ||
Other borrowings | ' | ||
Note 19. Other Borrowings | |||
On June 15, 2012, Pinnacle Financial entered into a loan agreement with a bank for $25 million (the Loan Agreement). Borrowings under the Loan Agreement, combined with available cash, were used for the redemption, on June 20, 2012, of the remaining 71,250 shares of preferred stock owned by the Treasury that had been issued under the CPP. | |||
Pinnacle Financial's borrowings under the Loan Agreement bear interest at rates that, at Pinnacle Financial's option, can be either: | |||
• | A base rate generally defined as the sum of (i) the highest of (x) the lender's "base" or "prime" rate, (y) the average overnight federal funds effective rate plus one-half percent (0.50%) per annum or (z) one-month LIBOR plus one percent (1%) per annum and (ii) an applicable margin as noted below; or | ||
• | A LIBOR rate generally defined as the sum of (i) the average of the offered rates of interest quoted in the London Inter-Bank Eurodollar Market for U.S. Dollar deposits with prime banks (as published by Reuters or other commercially available source) for one, two or three months (all as selected by the Company), and (ii) an applicable margin. | ||
The applicable margin under the Loan Agreement ranges from 2.25% (225 basis points) to 3.00% (300 basis points) depending on the total aggregate principal amount outstanding under the Loan Agreement. The initial applicable margin for both base rate and LIBOR rate loans is 3.00% (300 basis points). At December 31, 2013, the interest rate paid on borrowings under the Loan Agreement was 2.94%. | |||
Pinnacle Financial is required to make quarterly principal payments of $625,000 and the loan matures on June 15, 2017. Pinnacle Financial is permitted to prepay all or a portion of the principal amount outstanding under the Loan Agreement without penalty (in minimum aggregate amounts of $100,000) at any time so long as no event of default or unmatured event of default has occurred and is continuing. | |||
The Loan Agreement includes negative covenants that limit, among other things, certain fundamental transactions, additional indebtedness, transactions with affiliates, liens, and sales of assets. The Loan Agreement specifically restricts transfers or encumbrances of the shares of the capital stock of Pinnacle Financial's bank subsidiary. The Loan Agreement also includes financial covenants related to Pinnacle Financial's, and in some cases, Pinnacle Bank's, capitalization, levels of risk-based capital, ratio of nonperforming assets to tangible primary capital and ratio of allowance for loan and lease losses to nonperforming loans. The Loan Agreement also includes a fixed charge coverage ratio requiring the sum of Pinnacle Financial's net income plus the amount of any goodwill amortization expense and contractually due interest divided by the sum of Pinnacle Financial's contractually due interest and principal amounts (assuming annual principal amortization of $2.5 million under the Loan Agreement), to be not less than 125% on a rolling four quarter basis starting December 31, 2012. | |||
The Loan Agreement also contains other customary affirmative and negative covenants, representations, warranties and events of default, which include but are not limited to, payment defaults, breaches of representations and warranties, covenant defaults, events of bankruptcy and insolvency, and the institution of certain regulatory enforcement actions against Pinnacle Financial or Pinnacle Bank. If an event of default occurs and is continuing, Pinnacle Financial may be required immediately to repay all amounts outstanding under the Loan Agreement. | |||
On October 2, 2013, the Loan Agreement was amended to permit Pinnacle Financial to pay dividends on its capital stock so long as no event of default was then existing or would be caused by the payment of such dividends. | |||
Debt issuance costs associated with the Loan Agreement of approximately $162,000 consisting primarily of professional fees are included in other assets in the accompanying consolidated balance sheet. These debt issuance costs are being amortized over three years using the straight-line method which approximates the interest method that is required by U.S. GAAP. |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Variable Interest Entities [Abstract] | ' | |||||||||||||||||
Variable Interest Entities | ' | |||||||||||||||||
Note 20. 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, 2013 and 2012 has been prepared in accordance with ASC 810. | ||||||||||||||||||
Non-consolidated Variable Interest Entities | ||||||||||||||||||
At December 31, 2013, Pinnacle Financial did not have any consolidated variable interest entities to disclose but did have the following non-consolidated variable interest entities: low income housing partnerships, trust preferred issuances, troubled debt restructuring commercial loans, 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. These partnerships 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 has previously issued subordinated debt totaling $82.5 million to PNFP Statutory Trust I, II, III, and IV. These trusts 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. | ||||||||||||||||||
For certain troubled commercial loans, Pinnacle Financial restructures the terms of the borrower's debt in an effort to increase the probability of receipt of amounts contractually due. However, Pinnacle Financial does not assume decision-making power or responsibility over the borrower's operations. Following a debt restructuring, the borrowing entity typically meets the definition of a VIE as the initial determination of whether the entity is a VIE must be reconsidered and economic events have proven that the entity's equity is not sufficient to permit it to finance its activities without additional subordinated financial support or a restructuring of the terms of its financing. As Pinnacle Financial does not have the power to direct the activities that most significantly impact such troubled commercial borrowers' operations, it is not considered the primary beneficiary even in situations where, based on the size of the financing provided, Pinnacle Financial is exposed to potentially significant benefits and losses of the borrowing entity. Pinnacle Financial has no contractual requirements to provide financial support to the borrowing entities beyond certain funding commitments established upon restructuring of the terms of the debt to allow for completion of activities which prepare the collateral related to the debt for sale. | ||||||||||||||||||
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, 2013 (in thousands): | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
Type | Maximum | Liability | Maximum | Liability | Classification | |||||||||||||
Loss Exposure | Recognized | Loss Exposure | Recognized | |||||||||||||||
Low Income Housing Partnerships | $ | 7,945 | $ | - | $ | 6,096 | $ | - | Other Assets | |||||||||
Trust Preferred Issuances | N/A | 82,476 | N/A | 82,476 | Subordinated Debt | |||||||||||||
Commercial Troubled Debt Restructurings | 15,273 | - | 20,951 | - | Loans | |||||||||||||
Managed Discretionary Trusts | N/A | N/A | N/A | N/A | N/A |
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Regulatory Matters [Abstract] | ' | ||||||||||||||||||||||||
Regulatory Matters | ' | ||||||||||||||||||||||||
Note 21. Regulatory Matters | |||||||||||||||||||||||||
Pursuant to Tennessee banking law, Pinnacle Bank may not, without the prior consent of the Commissioner of the TDFI, pay any dividends to Pinnacle Financial in a calendar year in excess of the total of Pinnacle Bank's retained net income for that year plus the retained net income for the preceding two years. As of December 31, 2013, Pinnacle Bank could pay approximately $105.8 million of dividends to Pinnacle Financial without prior approval of the Commissioner of the TDFI. During 2013, Pinnacle Bank paid $14.9 million of dividends to Pinnacle Financial. On October 15, 2013, Pinnacle Financial's board of directors approved the initiation of a quarterly cash dividend on Pinnacle Financial's common stock. The initial quarterly dividend of $0.08 per share was paid on December 20, 2013. The amount and timing of all future dividend payments is subject to the discretion of Pinnacle Financial's board of directors and will depend on Pinnacle Financial's earnings, capital position, financial condition and other factors, including new regulatory capital requirements, as they become known to us. | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require Pinnacle Financial and Pinnacle Bank to maintain minimum amounts and ratios of Total and Tier I capital to risk-weighted assets and for Pinnacle Bank of Tier I capital to average assets. Management believes, as of December 31, 2013, 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 minimum Total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the following table and not be subject to a written agreement, order or directive to maintain a higher capital level. Pinnacle Financial's and Pinnacle Bank's actual capital amounts and ratios are presented in the following table (in thousands): | |||||||||||||||||||||||||
Actual | Minimum Capital | Minimum | |||||||||||||||||||||||
Requirement | To Be Well-Capitalized | ||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||
Total capital to risk weighted assets: | |||||||||||||||||||||||||
Pinnacle Financial | $ | 621,683 | 13 | % | $ | 382,190 | 8 | % | $ | 478,688 | 10 | % | |||||||||||||
Pinnacle Bank | $ | 599,028 | 12.6 | % | $ | 381,439 | 8 | % | $ | 477,761 | 10 | % | |||||||||||||
Tier I capital to risk weighted assets: | |||||||||||||||||||||||||
Pinnacle Financial | $ | 561,847 | 11.8 | % | $ | 191,095 | 4 | % | $ | 287,213 | 6 | % | |||||||||||||
Pinnacle Bank | $ | 539,309 | 11.3 | % | $ | 190,720 | 4 | % | $ | 286,657 | 6 | % | |||||||||||||
Tier I capital to average assets (*): | |||||||||||||||||||||||||
Pinnacle Financial | $ | 561,847 | 10.9 | % | $ | 205,695 | 4 | % | N/ | A | N/ | A | |||||||||||||
Pinnacle Bank | $ | 539,309 | 10.5 | % | $ | 204,977 | 4 | % | $ | 256,221 | 5 | % | |||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
Total capital to risk weighted assets: | |||||||||||||||||||||||||
Pinnacle Financial | $ | 552,021 | 13 | % | $ | 339,151 | 8 | % | $ | 425,748 | 10 | % | |||||||||||||
Pinnacle Bank | $ | 545,615 | 12.9 | % | $ | 338,548 | 8 | % | $ | 425,005 | 10 | % | |||||||||||||
Tier I capital to risk weighted assets: | |||||||||||||||||||||||||
Pinnacle Financial | $ | 498,802 | 11.8 | % | $ | 169,575 | 4 | % | $ | 255,449 | 6 | % | |||||||||||||
Pinnacle Bank | $ | 492,489 | 11.6 | % | $ | 169,274 | 4 | % | $ | 255,003 | 6 | % | |||||||||||||
Tier I capital to average assets (*): | |||||||||||||||||||||||||
Pinnacle Financial | $ | 498,802 | 10.6 | % | $ | 188,695 | 4 | % | N/ | A | N/ | A | |||||||||||||
Pinnacle Bank | $ | 492,489 | 10.5 | % | $ | 187,981 | 4 | % | $ | 234,976 | 5 | % | |||||||||||||
(*) Average assets for the above calculations were based on the most recent quarter. | |||||||||||||||||||||||||
In July 2013, the Federal Reserve Board and the FDIC approved final rules that substantially amend the regulatory risk-based capital rules applicable to Pinnacle Bank and Pinnacle Financial. The final rules implement the regulatory capital reforms of the Basel Committee on Banking Supervision reflected in "Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems" (Basel III) and changes required by the Dodd-Frank Act. | |||||||||||||||||||||||||
Under these rules, the leverage and risk-based capital ratios of bank holding companies may not be lower than the leverage and risk-based capital ratios for insured depository institutions. The final rules implementing the Basel III regulatory capital reforms will become effective as to Pinnacle Financial and Pinnacle Bank on January 1, 2015, and include new minimum risk-based capital and leverage ratios. Moreover, these rules refine the definition of what constitutes "capital" for purposes of calculating those ratios, including the definitions of Tier 1 capital and Tier 2 capital. The new minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: (i) a new common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6% (increased from 4%); (iii) a total risk-based capital ratio of 8% (unchanged from current rules); (iv) a Tier 1 leverage ratio of 4% for all institutions. The rules also establish a "capital conservation buffer" of 2.5% (to be phased in over three years) above the new regulatory minimum risk-based capital ratios, and result in the following minimum ratios once the capital conservation buffer is fully phased in: (i) a common equity Tier 1 risk-based capital ratio of 7%, (ii) a Tier 1 risk-based capital ratio of 8.5%, and (iii) a total risk-based capital ratio of 10.5%. The capital conservation buffer requirement is to be phased in beginning in January 2016 at 0.625% of risk-weighted assets and would increase each year until fully implemented in January 2019. An institution will be subject to limitations on paying dividends, engaging in share repurchases and paying discretionary bonuses if capital levels fall below minimum plus the buffer amounts. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions. | |||||||||||||||||||||||||
Under these new rules, Tier 1 capital will generally consist of common stock (plus related surplus) and retained earnings, limited amounts of minority interest in the form of additional Tier 1 capital instruments, and non-cumulative preferred stock and related surplus, subject to certain eligibility standards, less goodwill and other specified intangible assets and other regulatory deductions. Cumulative preferred stock and trust preferred securities issued after May 19, 2010, will no longer qualify as Tier 1 capital, but such securities issued prior to May 19, 2010, including in the case of bank holding companies with less than $15.0 billion in total assets, trust preferred securities issued prior to that date, will continue to count as Tier 1 capital subject to certain limitations. The definition of Tier 2 capital is generally unchanged for most banking organizations, subject to certain new eligibility criteria. | |||||||||||||||||||||||||
Common equity Tier 1 capital will generally consist of common stock (plus related surplus) and retained earnings plus limited amounts of minority interest in the form of common stock, less goodwill and other specified intangible assets and other regulatory deductions. | |||||||||||||||||||||||||
The final rules allow banks and their holding companies with less than $250 billion in assets a one-time opportunity to opt-out of a requirement to include unrealized gains and losses in accumulated other comprehensive income in their capital calculation. Pinnacle Financial expects that it will opt-out of this requirement. |
Parent_Company_Only_Financial_
Parent Company Only Financial Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Parent Company Only Financial Information [Abstract] | ' | ||||||||||||
Parent Company Only Financial Information | ' | ||||||||||||
Note 22. 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, 2013 and 2012 and for each of the years in the three-year period ended December 31, 2013: | |||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||
2013 | 2012 | ||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 21,095,990 | $ | 13,657,278 | |||||||||
Investments in consolidated subsidiaries | 788,522,316 | 758,512,213 | |||||||||||
Investment in unconsolidated subsidiaries: | |||||||||||||
PNFP Statutory Trust I | 310,000 | 310,000 | |||||||||||
PNFP Statutory Trust II | 619,000 | 619,000 | |||||||||||
PNFP Statutory Trust III | 619,000 | 619,000 | |||||||||||
PNFP Statutory Trust IV | 928,000 | 928,000 | |||||||||||
Other investments | 4,146,126 | 3,214,358 | |||||||||||
Current income tax receivable | 553,401 | 472,869 | |||||||||||
Other assets | 5,638,884 | 6,954,411 | |||||||||||
$ | 822,432,717 | $ | 785,287,129 | ||||||||||
Liabilities and stockholders' equity: | |||||||||||||
Subordinated debt and other borrowings | 98,658,292 | 106,158,292 | |||||||||||
Other liabilities | 66,764 | 57,478 | |||||||||||
Stockholders' equity | 723,707,661 | 679,071,359 | |||||||||||
$ | 822,432,717 | $ | 785,287,129 | ||||||||||
CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues | $ | 266,472 | $ | 157,443 | $ | 1,228,999 | |||||||
Expenses: | |||||||||||||
Interest expense | 2,729,843 | 2,689,197 | 2,082,836 | ||||||||||
Stock-based compensation expense | 4,082,132 | 3,664,494 | 4,435,739 | ||||||||||
Other expense | 770,252 | 778,947 | 669,560 | ||||||||||
Loss before income taxes and equity in undistributed income (loss) of subsidiaries | (7,315,755 | ) | (6,975,195 | ) | (5,959,136 | ) | |||||||
Income tax benefit | (2,869,605 | ) | (2,736,020 | ) | (7,641,435 | ) | |||||||
(Loss) income before equity in undistributed income of subsidiaries and accretion on preferred stock discount | (4,446,150 | ) | (4,239,175 | ) | 1,682,299 | ||||||||
Equity in undistributed income of subsidiaries | 62,172,351 | 46,123,056 | 42,055,068 | ||||||||||
Net income | 57,726,201 | 41,883,881 | 43,737,367 | ||||||||||
Preferred stock dividends | - | 1,660,868 | 4,606,493 | ||||||||||
Accretion on preferred stock discount | - | 2,153,172 | 2,058,146 | ||||||||||
Net income available to common stockholders | $ | 57,726,201 | $ | 38,069,841 | $ | 37,072,728 | |||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Operating activities: | |||||||||||||
Net income | $ | 57,726,201 | $ | 41,883,881 | $ | 43,737,367 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||
Stock-based compensation expense | 4,082,132 | 3,664,494 | 4,435,739 | ||||||||||
Loss (gain) on other investments | 22,484 | 138,020 | (313,562 | ) | |||||||||
Increase (decrease) in income tax payable, net | 80,532 | 169,016 | (5,351,564 | ) | |||||||||
Decrease (increase) in other assets | 1,608,121 | (912,116 | ) | 124,239 | |||||||||
Increase (decrease) in other liabilities | 9,286 | (8,176 | ) | (1,040 | ) | ||||||||
Excess tax benefit from stock compensation | (389,415 | ) | (36,071 | ) | (13,819 | ) | |||||||
Deferred tax expense | (453,661 | ) | (75,427 | ) | (636,040 | ) | |||||||
Equity in undistributed income of subsidiaries | (62,172,351 | ) | (46,123,056 | ) | (42,055,068 | ) | |||||||
Net cash provided by (used in) operating activities | 513,329 | (1,299,435 | ) | (73,748 | ) | ||||||||
Investing activities: | |||||||||||||
Investment in consolidated subsidiaries: | |||||||||||||
Banking subsidiaries | 14,910,000 | 27,210,000 | - | ||||||||||
Other subsidiaries | - | - | - | ||||||||||
Investments in other entities | (954,249 | ) | 47,804 | (393,304 | ) | ||||||||
Net cash provided by (used in) investing activities | 13,955,751 | 27,257,804 | (393,304 | ) | |||||||||
Financing activities: | |||||||||||||
Net (decrease) increase in subordinated debt and other borrowings | (7,500,000 | ) | 23,682,291 | - | |||||||||
Repurchase of common stock warrants | - | (755,000 | ) | - | |||||||||
Exercise of common stock options | 2,894,908 | 1,616,643 | 1,447,362 | ||||||||||
Preferred dividends paid | - | (2,127,604 | ) | (4,891,840 | ) | ||||||||
Common dividends paid | (2,814,691 | ) | - | - | |||||||||
Excess tax benefit from stock compensation arrangements | 389,415 | 36,071 | 13,819 | ||||||||||
Repurchase of preferred shares outstanding | - | (71,250,000 | ) | (23,750,000 | ) | ||||||||
Net cash used in financing activities | (7,030,368 | ) | (48,797,599 | ) | (27,180,659 | ) | |||||||
Net increase (decrease) in cash | 7,438,712 | (22,839,230 | ) | (27,647,711 | ) | ||||||||
Cash and cash equivalents, beginning of year | 13,657,278 | 36,496,508 | 64,144,219 | ||||||||||
Cash and cash equivalents, end of year | $ | 21,095,990 | $ | 13,657,278 | $ | 36,496,508 | |||||||
Pinnacle Bank is subject to restrictions on the payment of dividends to Pinnacle Financial under Tennessee banking laws. Pinnacle Bank paid dividends of $14,910,000 to Pinnacle Financial in 2013 and $27,210,000 in 2012. Pinnacle Bank did not pay any dividends to Pinnacle Financial during the year ended December 31, 2011. |
Quarterly_Financial_Results_un
Quarterly Financial Results (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Results (unaudited) [Abstract] | ' | ||||||||||||||||
Quarterly Financial Results (unaudited) | ' | ||||||||||||||||
Note 23. 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, 2013 follows: | |||||||||||||||||
(in thousands, except per share data) | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
2013 | |||||||||||||||||
Interest income | $ | 47,156 | $ | 47,544 | $ | 48,177 | $ | 48,405 | |||||||||
Net interest income | 42,758 | 43,599 | 44,573 | 44,969 | |||||||||||||
Provision for loan losses | 2,172 | 2,774 | 685 | 2,225 | |||||||||||||
Net income before taxes | 20,048 | 21,289 | 21,952 | 22,597 | |||||||||||||
Net income | 13,448 | 14,311 | 14,647 | 15,321 | |||||||||||||
Net income available to common stockholders | 13,448 | 14,311 | 14,647 | 15,321 | |||||||||||||
Basic net income per share available to common stockholders | $ | 0.4 | $ | 0.42 | $ | 0.43 | $ | 0.45 | |||||||||
Diluted net income per share available to common stockholders | $ | 0.39 | $ | 0.42 | $ | 0.42 | $ | 0.44 | |||||||||
2012 | |||||||||||||||||
Interest income | $ | 45,824 | $ | 45,953 | $ | 46,441 | $ | 47,203 | |||||||||
Net interest income | 39,504 | 40,185 | 40,932 | 42,243 | |||||||||||||
Provision for loan losses | 1,034 | 634 | 1,413 | 2,488 | |||||||||||||
Net income before taxes | 12,599 | 15,545 | 16,371 | 18,012 | |||||||||||||
Net income | 8,365 | 10,440 | 11,349 | 11,730 | |||||||||||||
Net income available to common stockholders | 7,206 | 7,785 | 11,349 | 11,730 | |||||||||||||
Basic net income per share available to common stockholders | $ | 0.21 | $ | 0.23 | $ | 0.33 | $ | 0.35 | |||||||||
Diluted net income per share available to common stockholders | $ | 0.21 | $ | 0.23 | $ | 0.33 | $ | 0.34 | |||||||||
2011 | |||||||||||||||||
Interest income | $ | 47,224 | $ | 47,789 | $ | 46,888 | $ | 46,446 | |||||||||
Net interest income | 29,882 | 31,208 | 34,723 | 33,854 | |||||||||||||
Provision for loan losses | 6,139 | 6,587 | 3,632 | 5,439 | |||||||||||||
Net income before taxes | 3,505 | 6,660 | 9,128 | 9,207 | |||||||||||||
Net income | 3,505 | 6,372 | 26,101 | 7,760 | |||||||||||||
Net income available to common stockholders | 2,011 | 4,844 | 24,537 | 5,681 | |||||||||||||
Basic net income per share available to common stockholders | $ | 0.06 | $ | 0.14 | $ | 0.74 | $ | 0.17 | |||||||||
Diluted net income per share available to common stockholders | $ | 0.06 | $ | 0.14 | $ | 0.72 | $ | 0.17 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Basis of Presentation | ' | ||||||||||||
Basis of Presentation — These consolidated financial statements include the accounts of Pinnacle Financial and its wholly-owned subsidiaries. PNFP Statutory Trust I, PNFP Statutory Trust II, PNFP Statutory Trust III, and PNFP Statutory Trust IV are affiliates of Pinnacle Financial and 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 loan losses, determination of any impairment of intangible assets, the valuation of other real estate owned and the valuation of deferred tax assets. | |||||||||||||
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 has $3.8 million and $5.1 million of long-lived amortizing intangibles at December 31, 2013 and 2012, respectively. | |||||||||||||
Goodwill is evaluated for impairment at least annually and more frequently if events and circumstances indicate that the asset might be impaired. That annual assessment date for Pinnacle Financial is September 30. An impairment loss is recognized to the extent that the carrying amount exceeds fair value. | |||||||||||||
The Accounting Standards Codification (ASC) 350, Goodwill and Other, regarding testing goodwill for impairment 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 does a qualitative assessment and determines that this is the case, or if a qualitative assessment is not performed, it is required to perform additional goodwill impairment testing to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit (if any). Based on a qualitative assessment, if an entity determines that the fair value of a reporting unit is more than its carrying amount, the two-step goodwill impairment test is not required. Pinnacle Financial performed our annual assessment as of September 30, 2013. The results of the qualitative assessment indicated that the fair value of Pinnacle Financial's reporting unit was more than its carrying value, and accordingly, the two-step goodwill impairment test was not performed. | |||||||||||||
Should Pinnacle Financial's common stock price decline 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. Pinnacle Financial has $243.7 million of goodwill related to the acquisition of Cavalry Bancorp, Inc. and Mid America Bancshares, Inc. in 2006 and 2007, respectively. | |||||||||||||
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, 2013 as follows: | |||||||||||||
For the years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash Payments: | |||||||||||||
Interest | $ | 16,020,132 | $ | 23,506,632 | $ | 39,991,746 | |||||||
Income taxes paid | 27,150,000 | 10,249,106 | 3,988,414 | ||||||||||
Noncash Transactions: | |||||||||||||
Loans charged-off to the allowance for loan losses | 17,252,736 | 19,657,061 | 34,849,910 | ||||||||||
Loans foreclosed upon with repossessions transferred to other real estate | 4,630,251 | 9,052,792 | 34,580,351 | ||||||||||
Available-for-sale securities transferred to held-to-maturity portfolio | 39,959,647 | - | - | ||||||||||
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. | |||||||||||||
Other-than-temporary Impairment | ' | ||||||||||||
Other-than-temporary Impairment — A decline in the fair value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in a reduction in the carrying amount of the security. To determine whether impairment is other-than-temporary, management considers whether the entity expects to recover the entire amortized cost basis of the security by reviewing the present value of the future cash flows associated with the security. The shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is referred to as a credit loss and is deemed to be other-than-temporary impairment. If a credit loss is identified, the credit loss is recognized as a charge to earnings and a new cost basis for the security is established. If management concludes that a decline in fair value of a security is temporary and, a full recovery of principal and interest is expected and it is not more-likely-than-not that it will be required to sell the security before recovery of their amortized cost basis, then the security is not other-than-temporarily impaired and the shortfall is recorded as a component of equity. | |||||||||||||
Periodically, available-for-sale securities may be sold or the composition of the portfolio realigned to improve yields, quality or marketability, or to implement changes in investment or asset/liability strategy, including maintaining collateral requirements and raising funds for liquidity purposes. Additionally, if an available-for-sale security loses its investment grade, 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. Resultantly, other-than-temporary charges may be incurred as management's intention related to a particular security changes. | |||||||||||||
The carrying values of Pinnacle Financial's investment securities could decline in the future if the financial condition of issuers deteriorates and management determines it is probable that Pinnacle Financial will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future. There is also a risk that other-than-temporary impairment charges may occur in the future if management's intention to hold these securities to maturity and or recovery changes. | |||||||||||||
Mortgage loans held-for-sale | ' | ||||||||||||
Mortgage loans held-for-sale — Mortgage 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 operations in gains on mortgage loans sold, net of related costs such as compensation expenses. Pinnacle Financial does not securitize mortgage loans and does not retain the servicing for loans sold. | |||||||||||||
Loans | ' | ||||||||||||
Loans — Pinnacle Financial has five loan segments for financial reporting purposes: commercial, commercial real estate, construction and development, consumer and consumer real estate. 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 the allowance for loan losses 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, 2013 and 2012, net deferred loan fees of $993,000 and $1,000,000 respectively, were included in 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-impaired or doubtful-impaired. Pinnacle Financial believes that our categories follow those outlined by Pinnacle Bank's primary federal regulator. At December 31, 2013, approximately 74% of our loan portfolio was assigned a specifically assigned risk rating in the allowance for loan loss assessment. 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 homogenous 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. | |||||||||||||
All loans that are placed on nonaccrual status are further analyzed to determine if they should be classified as impaired loans. At December 31, 2013, there were no loans classified as nonaccrual that were not also deemed to be impaired. A loan is considered to be impaired when it is probable Pinnacle Financial will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan. This determination is made using a variety of techniques, which include a review of the borrower's financial condition, debt-service coverage ratios, global cash flow analysis, guarantor support, other loan file information, meetings with borrowers, inspection or reappraisal of collateral and/or consultation with legal counsel as well as results of reviews of other similar industry credits (e.g. builder loans, development loans, church loans, etc.). | |||||||||||||
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. | |||||||||||||
Allowance for Loan Losses | ' | ||||||||||||
Allowance for Loan Losses — The allowance for loan losses is maintained at a level that management believes to be adequate to absorb probable losses inherent in the loan portfolio as of the balance sheet date. Loan losses are charged against the allowance when they are known. Subsequent recoveries are credited to the allowance. Management's determination of the adequacy of the allowance is based on an evaluation of the portfolio, current economic conditions, volume, growth, composition of the loan portfolio, homogeneous pools of loans, risk ratings of specific loans, internal and external historical loss experience, identified impaired loans and other factors related to the portfolio. This evaluation is performed quarterly and is inherently subjective, as it requires material estimates that are susceptible to significant change including the amounts and timing of future cash flows expected to be received on any impaired loans. | |||||||||||||
In assessing the adequacy of the allowance, we also consider the results of our ongoing independent loan review process. We undertake this process both to ascertain whether there are loans in the portfolio whose credit quality has weakened over time and to assist in our overall evaluation of the risk characteristics of the entire loan portfolio. Our loan review process includes the judgment of management, independent loan reviewers, and reviews that may have been conducted by third-party reviewers. We incorporate relevant loan review results in the loan impairment determination. In addition, regulatory agencies, as an integral part of their examination process, will periodically review Pinnacle Financial's allowance for loan losses and may require Pinnacle Financial to record adjustments to the allowance based on their judgment about information available to them at the time of their examinations. Each risk rating is also subject to review by our independent loan review department. Currently, our independent loan review department targets reviews of a significant portion of our risk rated portfolio annually. Included in the coverage are independent loan reviews of loans in targeted higher-risk portfolio segments such as certain commercial and industrial loans, land loans, loans assigned to a particular lending officer and/or loan types in certain geographies. | |||||||||||||
In addition to the independent loan review process, the aforementioned risk ratings are subject to continual review by the loan officer to determine that the appropriate risk ratings are being utilized in our allowance for loan loss process. At least annually, and in many cases twice per year, our credit policy requires that each risk-rated loan is subject to a formal credit risk review to be performed by the responsible financial advisor. | |||||||||||||
All of the above factors are utilized in the determination of the allowance for loan losses which is composed of the results of two distinct impairment analyses pursuant to the provisions of both ASC 450-20 and ASC 310-10-35 as discussed below. | |||||||||||||
ASC 450-20, Loss Contingencies — The ASC 450-20 component of the allowance for loan losses begins with a process of estimating the probable losses based on our internal system of risk ratings and historical loss data for Pinnacle Bank's risk rated portfolio. Prior to 2010, because of limited loss history, loss estimates were primarily derived from historical loss data by loan categories for comparable peer institutions. During 2010, Pinnacle Bank incorporated the results of its own historical migration analysis of all loans that were charged-off during the prior eight quarters going back to the second quarter of 2009. Subsequently, Pinnacle Bank increased its look-back period each quarter to include the most recent quarter's loss history for a total of 19 quarters as of December 31, 2013. Pinnacle Bank will continue to increase its look-back period to incorporate twenty quarters of loss history in 2014. In this current economic environment, we believe the extension of our look-back period in our migration analysis has been appropriate due to the risks inherent in our loan portfolio. Absent the previous extensions to Pinnacle Bank's look-back period, the early cycle periods in which we experienced significant losses would have been excluded from the determination of the allowance for loan losses as of December 31, 2013. | |||||||||||||
This migration analysis assists in evaluating loan loss allocation rates for the various risk grades assigned to loans in the portfolio. The results of the migration analysis are then compared to other industry factors to determine the loss allocation rates for the risk rated loan portfolios. The loss allocation rates from the migration analysis and the industry loss factors are annually weighted 75% to 25%, respectively, to determine a weighted average loss allocation rate for these portfolios. | |||||||||||||
The allowance allocation for non risk-rated portfolios is based on consideration of actual internal historical loss rates and industry loss rates for those particular segments. Non risk-rated loans are evaluated as a group by category rather than on an individual loan basis because these loans are smaller and homogeneous. The internally and externally-based allocation methodologies for the non risk-rated loan portfolio are weighted to determine a weighted average loss allocation rate for these portfolios. | |||||||||||||
The estimated loan loss allocation for all loan segments is then adjusted for management's estimate of probable losses for several environmental factors. The allocation for environmental factors is particularly subjective and does not lend itself to exact mathematical calculation. This amount represents estimated probable inherent credit losses which exist, but have not yet been identified, as of the balance sheet date, and is based upon quarterly trend assessments in delinquent and nonaccrual loans, unanticipated charge-offs, credit concentration changes, prevailing economic conditions, changes in lending personnel experience, changes in lending policies or procedures and other influencing factors. These environmental factors are considered for each of the five loan segments, and the allowance allocation, as determined by the processes noted above for each segment, is increased or decreased based on the incremental assessment of these various environmental factors. The environmental factors accounted for approximately 19.9% of the allocated allowance for loan losses under ASC 450-20 at December 31, 2013 compared to 18.6% at December 31, 2012. | |||||||||||||
ASC 450-20, Loss Contingencies | ' | ||||||||||||
The ASC 450-20 portion of the allowance also includes an unallocated component. We believe that the unallocated amount is warranted for inherent factors that cannot be practically assigned to individual loan categories, such as the imprecision in the overall loss allocation measurement process, the volatility of the local economies in the markets we serve and imprecision in our credit risk ratings process. | |||||||||||||
ASC 310-10-35, Receivables | ' | ||||||||||||
ASC 310-10-35, Receivables — The ASC 310-10-35 component of the allowance for loan loss is the allowance for nonaccrual loans and troubled debt restructurings. Generally, loans with an identified weakness and principal balance of $250,000 or more are subject to an individual determination of the amount of impairment that exists for a particular loan. The amount of the impairment is measured based on the present value of expected payments using the loan's original effective rate as the discount rate, the loan's observable market price, or the fair value of the collateral if the loan is collateral dependent. If the recorded investment in the impaired loan exceeds the measure of fair value, a specific valuation allowance is established as a component of the allowance for loan losses or, in the case of collateral dependent loans or any loan with a confirming event, the excess is charged off. Changes to the valuation allowance are recorded as a component of the provision for loan losses. Any subsequent adjustments to present value calculations for impaired loan valuations as a result of the passage of time, such as changes in the anticipated payback period for repayment, are recorded as a component of the provision for loan losses. | |||||||||||||
For nonaccrual loans and troubled debt restructurings less than $250,000, Pinnacle Financial assigns a valuation allowance to these loans utilizing an allocation rate equal to the allocation rate calculated for loans of a similar type greater than $250,000. In addition, Pinnacle Financial reviews impaired collateral dependent loans less than $250,000 to determine if any amounts should be charged-off pursuant to regulatory requirements. At December 31, 2013, the principal balance of these small impaired loans was $5.8 million, which represented 15.2% of all impaired loans. At December 31, 2012, the principal balance of these small impaired loans was $5.0 million, which represented 9.9% of all impaired loans. | |||||||||||||
Recently Adopted Accounting Pronouncement | ' | ||||||||||||
Recently Adopted Accounting Pronouncements — In February 2013, the FASB issued Accounting Standards Update 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" which provides disclosure guidance on amounts reclassified out of AOCI by component. The adoption did not have any impact on our financial position or results of operations but has impacted our financial statement disclosure. As shown on the statement of comprehensive income for the years ended December 31, 2013, 2012 and 2011, Pinnacle Financial reclassified approximately $891,000 of net losses, and net gains of $1.3 million and $584,000 out of other comprehensive income into investment gains (losses) on sales and impairments, net of tax. | |||||||||||||
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 and thirty years. | |||||||||||||
Pinnacle Bank is the lessee with respect to several office locations. All such leases are being accounted for as operating leases within the accompanying consolidated financial statements. Several of these leases include rent escalation clauses. Pinnacle Bank expenses the costs associated with these escalating payments over the life of the expected lease term using the straight-line method. At December 31, 2013, the deferred liability associated with these escalating rentals was approximately $2,234,000 and is included in other liabilities in the accompanying consolidated balance sheets. | |||||||||||||
Other Investments | ' | ||||||||||||
Other Investments — 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. At December 31, 2013 and 2012, the cost of these investments was $16,103,000 and $14,176,000, respectively. Pinnacle Financial determined that cost approximates the fair value of these investments. Additionally, Pinnacle Financial has recorded certain other equity investments in other entities, at fair value, of $6,701,000 and $4,214,000 at December 31, 2013 and 2012, respectively. During 2013 and 2012, Pinnacle Financial recorded net gains of $122,000 and net losses of $70,000, respectively, due to changes in the fair value of these investments. As more fully described in footnote 10, Pinnacle Financial has an investment in four Trusts valued at $2,476,000 as of December 31, 2013 and 2012. The 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 Trusts. Also, as part of our compliance with the Community Reinvestment Act, we had investments in low income housing entities totaling $7,945,000 and $6,096,000, net, as of December 31, 2013 and 2012, respectively. These investments are reflected in the accompanying consolidated balance sheets in other investments. | |||||||||||||
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. 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 adequate collateral. Upon its acquisition by Pinnacle Bank, 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. The difference from the loan balance is recognized as a charge-off through the allowance for loan 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 income or noninterest expense, as applicable. | |||||||||||||
Included in the accompanying consolidated balance sheet at December 31, 2013 is $20,913,000 of OREO with related property-specific valuation allowances of $5,687,000. At December 31, 2012, OREO totaled $26,793,000 with related property-specific valuation allowances of $8,213,000. During the years ended December 31, 2013, 2012 and 2011, Pinnacle Financial incurred $3,113,000, $11,544,000, and $17,432,000, respectively, of foreclosed real estate expense, of which $2,014,000, $9,470,000, and $12,806,000 were realized losses on dispositions and holding losses on valuations of OREO properties during 2013, 2012 and 2011, respectively. | |||||||||||||
Other Assets | ' | ||||||||||||
Other Assets — Included in other assets as of December 31, 2013 and 2012, is approximately $2,748,000 and $1,336,000, 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 to seven years. For the years ended December 31, 2013, 2012, and 2011, Pinnacle Financial's amortization expense was approximately $937,000, $901,000, and $818,000, respectively. Software maintenance fees are capitalized in other assets and amortized over the term of the maintenance agreement. | |||||||||||||
Pinnacle Bank is the owner and beneficiary of various life insurance policies on certain key executives and certain directors, including policies that were acquired in its merger with Cavalry. Collectively, these policies are reflected in other assets in the accompanying consolidated balance sheets at their respective cash surrender values. At December 31, 2013 and 2012, the aggregate cash surrender value of these policies was $90,271,000 and $49,802,000, respectively. Noninterest income related to these policies was $2,116,000, $919,000, and $1,159,000, during the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
In November 2009, the FDIC issued a rule that required all insured depository institutions, with limited exceptions, to prepay their estimated quarterly risk-based assessments for the fourth quarter of 2009 and for all of 2011, 2012 and 2013. At December 31, 2012, Pinnacle Financial had approximately $4.1 million in pre-paid deposit insurance that was included in other assets in the accompanying consolidated balance sheet and that was subsequently applied to FDIC assessment periods. During 2013, the remaining prepaid was credited to Pinnacle Financial. | |||||||||||||
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 also has a forward cash flow hedge relationship to manage our future interest rate exposure. This derivative contract has been designated as a hedge and, as such, changes in the fair value of the derivative instrument are recorded in other comprehensive income. 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 and does not assume perfect effectiveness through the matching of critical terms. Assessments of hedge effectiveness and measurements of hedge ineffectiveness are performed at least quarterly. The effective 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 are initially recorded in accumulated other comprehensive income (AOCI) 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. 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. As of December 31, 2013, Pinnacle Financial had no unrecognized tax benefits related to Federal or State income tax matters and does not anticipate any material increase or decrease in unrecognized tax benefits relative to any tax positions taken prior to December 31, 2013. | |||||||||||||
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 (a) changes in certain circumstances that cause a change in judgment about the realization of deferred tax assets in future years, (b) changes in income tax laws or rates, and (c) 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. | |||||||||||||
Pinnacle Financial and its subsidiaries file consolidated U.S. Federal and State of Tennessee income tax returns. 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 for the years ended December 31, 2010 through 2013 and the state of Tennessee for the years ended December 31, 2010 through 2013. | |||||||||||||
As of December 31, 2013, Pinnacle Financial has accrued no interest and no penalties related to uncertain tax positions. Pinnacle Financial's policy is to recognize interest and/or penalties related to income tax matters in income tax expense. | |||||||||||||
Income (Loss) Per Common Share | ' | ||||||||||||
Income Per Common Share — Basic net income per share available to common stockholders (EPS) is computed by dividing net income available to common stockholders by the weighted average common shares outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted. The difference between basic and diluted weighted average shares outstanding is attributable to common stock options, common stock appreciation rights, warrants, restricted share awards, and restricted share unit awards. The dilutive effect of outstanding options, common stock appreciation rights, warrants, restricted share awards, and restricted share unit awards is reflected in diluted EPS by application of the treasury stock method. | |||||||||||||
As of December 31, 2013, there were approximately 997,000 stock options and 5,500 stock appreciation rights outstanding to purchase common shares. As of December 31, 2013 and 2012, Pinnacle Financial had no outstanding warrants to purchase common shares. For the year ended December 31, 2013 and 2012, respectively, approximately 308,000 and 588,000 of dilutive stock options, dilutive restricted shares, restricted share units and stock appreciation rights and warrants were included in the diluted earnings per share calculation under the treasury stock method. For the year ended December 31, 2013 and 2012, there were common stock options of 694,500 and 730,300, respectively outstanding which were considered anti-dilutive and thus have not been considered in the fully-diluted share calculations below. | |||||||||||||
The following is a summary of the basic and diluted earnings per share calculation for each of the years in the three-year period ended December 31, 2013: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Basic earnings per share calculation: | |||||||||||||
Numerator - Net income available to common stockholders | $ | 57,726,201 | $ | 38,069,841 | $ | 37,072,728 | |||||||
Denominator – Weighted average common shares outstanding | 34,200,770 | 33,899,667 | 33,420,015 | ||||||||||
Basic net income per common share available to common stockholders | $ | 1.69 | $ | 1.12 | $ | 1.11 | |||||||
Diluted earnings per share calculation: | |||||||||||||
Numerator - Net income available to common stockholders | $ | 57,726,201 | $ | 38,069,841 | $ | 37,072,728 | |||||||
Denominator – Weighted average common shares outstanding | 34,200,770 | 33,899,667 | 33,420,015 | ||||||||||
Dilutive shares contingently issuable | 308,491 | 588,141 | 640,213 | ||||||||||
Weighted average diluted common shares outstanding | 34,509,261 | 34,487,808 | 34,060,228 | ||||||||||
Diluted net income per common share available to common stockholders | $ | 1.67 | $ | 1.1 | $ | 1.09 | |||||||
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 requires 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 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. generally accepted accounting principles are included in comprehensive income (loss) but excluded from net income (loss). Currently, Pinnacle Financial's other comprehensive income (loss) consists of unrealized gains and losses on securities available-for-sale, net of deferred tax expense (benefit) and unrealized gains 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. generally accepted accounting principles 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 PARTNERS, INC. AND SUBSIDIARIES | |||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||
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 of 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. | |||||||||||||
Subsequent Events | ' | ||||||||||||
Subsequent Events - ASC Topic 855, Subsequent Events, established general standards of accounting for an disclosure of events that occur after the balance sheet date but before financial statements are issued. Pinnacle Financial evaluated all events or transactions that occurred after December 31, 2013, through the date of the issued financial statements. During this period there were no material recognizable subsequent events that required recognition or disclosures in the December 31, 2013 financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
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, 2013 as follows: | |||||||||||||
For the years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash Payments: | |||||||||||||
Interest | $ | 16,020,132 | $ | 23,506,632 | $ | 39,991,746 | |||||||
Income taxes paid | 27,150,000 | 10,249,106 | 3,988,414 | ||||||||||
Noncash Transactions: | |||||||||||||
Loans charged-off to the allowance for loan losses | 17,252,736 | 19,657,061 | 34,849,910 | ||||||||||
Loans foreclosed upon with repossessions transferred to other real estate | 4,630,251 | 9,052,792 | 34,580,351 | ||||||||||
Available-for-sale securities transferred to held-to-maturity portfolio | 39,959,647 | - | - | ||||||||||
Basic and Diluted Earnings Per Share Calculations | ' | ||||||||||||
The following is a summary of the basic and diluted earnings per share calculation for each of the years in the three-year period ended December 31, 2013: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Basic earnings per share calculation: | |||||||||||||
Numerator - Net income available to common stockholders | $ | 57,726,201 | $ | 38,069,841 | $ | 37,072,728 | |||||||
Denominator – Weighted average common shares outstanding | 34,200,770 | 33,899,667 | 33,420,015 | ||||||||||
Basic net income per common share available to common stockholders | $ | 1.69 | $ | 1.12 | $ | 1.11 | |||||||
Diluted earnings per share calculation: | |||||||||||||
Numerator - Net income available to common stockholders | $ | 57,726,201 | $ | 38,069,841 | $ | 37,072,728 | |||||||
Denominator – Weighted average common shares outstanding | 34,200,770 | 33,899,667 | 33,420,015 | ||||||||||
Dilutive shares contingently issuable | 308,491 | 588,141 | 640,213 | ||||||||||
Weighted average diluted common shares outstanding | 34,509,261 | 34,487,808 | 34,060,228 | ||||||||||
Diluted net income per common share available to common stockholders | $ | 1.67 | $ | 1.1 | $ | 1.09 |
Securities_Tables
Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Securities [Abstract] | ' | ||||||||||||||||||||||||
Summary of Amortized Cost and Fair Value of Available-for-sale and Held-to-maturity Securities | ' | ||||||||||||||||||||||||
The amortized cost and fair value of securities available-for-sale and held-to-maturity at December 31, 2013 and 2012 are summarized as follows (in thousands): | |||||||||||||||||||||||||
December 31, 2013: | Amortized Cost | Gross | Gross | Fair | |||||||||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||
U.S Treasury Securities | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
U.S. Government agency securities | 117,282 | 13 | 13,422 | 103,873 | |||||||||||||||||||||
Mortgage-backed securities | 411,967 | 9,771 | 8,802 | 412,936 | |||||||||||||||||||||
State and municipal securities | 143,763 | 5,504 | 856 | 148,411 | |||||||||||||||||||||
Asset-backed securities | 17,262 | - | 255 | 17,007 | |||||||||||||||||||||
Corporate notes | 10,218 | 1,018 | 7 | 11,229 | |||||||||||||||||||||
$ | 700,492 | $ | 16,306 | $ | 23,342 | $ | 693,456 | ||||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||||
State and municipal securities | 39,796 | 72 | 1,051 | 38,817 | |||||||||||||||||||||
$ | 39,796 | $ | 72 | $ | 1,051 | $ | 38,817 | ||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||
U.S Treasury Securities | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
U.S. Government agency securities | 110,817 | 49 | 414 | 110,452 | |||||||||||||||||||||
Mortgage-backed securities | 360,504 | 15,770 | 623 | 375,651 | |||||||||||||||||||||
State and municipal securities | 177,364 | 14,489 | 126 | 191,727 | |||||||||||||||||||||
Asset-backed securities | 17,361 | - | 9 | 17,352 | |||||||||||||||||||||
Corporate notes | 9,881 | 1,519 | 4 | 11,396 | |||||||||||||||||||||
$ | 675,927 | $ | 31,827 | $ | 1,176 | $ | 706,578 | ||||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||||
State and municipal securities | 575 | 8 | - | 583 | |||||||||||||||||||||
$ | 575,000 | $ | 8,000 | $ | - | $ | 583 | ||||||||||||||||||
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | ' | ||||||||||||||||||||||||
The amortized cost and fair value of debt securities as of December 31, 2013 by contractual maturity are 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 Cost | Fair | ||||||||||||||||||||||
Cost | Value | Value | |||||||||||||||||||||||
Due in one year or less | $ | 3,480 | $ | 3,516 | $ | 318 | $ | 316 | |||||||||||||||||
Due in one year to five years | 27,583 | 28,243 | 12,097 | 12,113 | |||||||||||||||||||||
Due in five years to ten years | 129,017 | 128,285 | 15,105 | 14,640 | |||||||||||||||||||||
Due after ten years | 111,004 | 103,470 | 12,276 | 11,748 | |||||||||||||||||||||
Mortgage-backed securities | 412,146 | 412,936 | - | - | |||||||||||||||||||||
Asset-backed securities | 17,262 | 17,006 | - | - | |||||||||||||||||||||
$ | 700,492 | $ | 693,456 | $ | 39,796 | $ | 38,817 | ||||||||||||||||||
Classification of Investments According to Term of Unrealized Losses of Less than Twelve Months or Twelve Months or Longer | ' | ||||||||||||||||||||||||
At December 31, 2013 and 2012, included in securities 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 | |||||||||||||||||||||||
less than 12 months | Unrealized Loss of | with an | |||||||||||||||||||||||
12 months or longer | Unrealized Loss | ||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized | ||||||||||||||||||||
Losses | |||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
U.S. government agency securities | 8,742 | 22 | 92,869 | 13,400 | 101,611 | 13,422 | |||||||||||||||||||
Mortgage-backed securities | 157,262 | 3,913 | 42,903 | 4,889 | 200,165 | 8,802 | |||||||||||||||||||
State and municipal securities | 46,282 | 1,351 | 3,798 | 555 | 50,080 | 1,906 | |||||||||||||||||||
Asset-backed securities | - | - | 17,006 | 255 | 17,006 | 255 | |||||||||||||||||||
Corporate notes | 946 | 6 | 159 | 2 | 1,105 | 8 | |||||||||||||||||||
Total temporarily-impaired securities | $ | 213,232 | $ | 5,292 | $ | 156,735 | $ | 19,101 | $ | 369,967 | $ | 24,393 | |||||||||||||
At December 31, 2012: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
U.S. government agency securities | 78,899 | 414 | - | - | 78,899 | 414 | |||||||||||||||||||
Mortgage-backed securities | 40,988 | 623 | - | - | 40,988 | 623 | |||||||||||||||||||
State and municipal securities | 5,179 | 126 | - | - | 5,179 | 126 | |||||||||||||||||||
Asset-backed securities | 17,353 | 9 | - | - | 17,353 | 9 | |||||||||||||||||||
Corporate notes | 162 | 4 | - | - | 162 | 4 | |||||||||||||||||||
Total temporarily-impaired securities | $ | 142,581 | $ | 1,176 | $ | - | $ | - | $ | 142,581 | $ | 1,176 |
Loans_and_Allowance_for_Loan_L1
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses [Abstract] | ' | ||||||||||||||||||||||||||||
Summary of Amount of Each Loan Classification, Categorized into Each Risk Rating Class | ' | ||||||||||||||||||||||||||||
The following table outlines the amount of each loan classification categorized into each risk rating category as of December 31, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||
31-Dec-13 | Commercial real estate - mortgage | Consumer real estate - mortgage | Construction and land development | Commercial and industrial | Consumer | Total | |||||||||||||||||||||||
and other | |||||||||||||||||||||||||||||
Accruing loans: | |||||||||||||||||||||||||||||
Pass | $ | 1,332,387 | $ | 670,412 | $ | 275,876 | $ | 1,557,923 | $ | 143,032 | $ | 3,979,630 | |||||||||||||||||
Special Mention | 8,282 | 1,824 | 31,835 | 20,065 | - | 62,006 | |||||||||||||||||||||||
Substandard (1) | 20,296 | 14,107 | 7,297 | 23,174 | 154 | 65,028 | |||||||||||||||||||||||
Total | 1,360,965 | 686,343 | 315,008 | 1,601,162 | 143,186 | 4,106,664 | |||||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||||||||||
Nonaccruing loans | |||||||||||||||||||||||||||||
Substandard-nonaccrual | 9,017 | 5,289 | 1,070 | 2,565 | 242 | 18,183 | |||||||||||||||||||||||
Doubtful-nonaccrual | - | - | - | - | - | - | |||||||||||||||||||||||
Total nonaccruing loans | 9,017 | 5,289 | 1,070 | 2,565 | 242 | 18,183 | |||||||||||||||||||||||
Troubled debt restructurings(2) | |||||||||||||||||||||||||||||
Pass | 2,564 | 1,666 | 113 | 320 | 276 | 4,939 | |||||||||||||||||||||||
Special Mention | - | - | - | - | - | - | |||||||||||||||||||||||
Substandard | 10,889 | 2,318 | - | 1,500 | - | 14,707 | |||||||||||||||||||||||
Total troubled debt restructurings | 13,453 | 3,984 | 113 | 1,820 | 276 | 19,646 | |||||||||||||||||||||||
Total impaired loans | 22,470 | 9,273 | 1,183 | 4,385 | 518 | 37,829 | |||||||||||||||||||||||
Total loans | $ | 1,383,435 | $ | 695,616 | $ | 316,191 | $ | 1,605,547 | $ | 143,704 | $ | 4,144,493 | |||||||||||||||||
31-Dec-12 | Commercial real estate - mortgage | Consumer real estate - mortgage | Construction and land development | Commercial and industrial | Consumer | Total | |||||||||||||||||||||||
and other | |||||||||||||||||||||||||||||
Accruing loans: | |||||||||||||||||||||||||||||
Pass | $ | 1,093,628 | $ | 649,571 | $ | 259,878 | $ | 1,390,207 | $ | 93,712 | $ | 3,486,996 | |||||||||||||||||
Special Mention | 12,670 | 4,242 | 29,472 | 23,133 | - | 69,517 | |||||||||||||||||||||||
Substandard (1) | 42,343 | 13,896 | 19,622 | 29,513 | - | 105,374 | |||||||||||||||||||||||
Total | 1,148,641 | 667,709 | 308,972 | 1,442,853 | 93,712 | 3,661,887 | |||||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||||||||||
Nonaccruing loans | |||||||||||||||||||||||||||||
Substandard-nonaccrual | 9,290 | 5,877 | 4,509 | 3,035 | 79 | 22,790 | |||||||||||||||||||||||
Doubtful-nonaccrual | 1 | 29 | - | 3 | - | 33 | |||||||||||||||||||||||
Total nonaccruing loans | 9,291 | 5,906 | 4,509 | 3,038 | 79 | 22,823 | |||||||||||||||||||||||
Troubled debt restructurings(2) | |||||||||||||||||||||||||||||
Pass | 4,705 | 3,623 | 71 | 502 | 119 | 9,020 | |||||||||||||||||||||||
Special Mention | - | - | - | - | - | - | |||||||||||||||||||||||
Substandard | 15,559 | 2,688 | - | 185 | - | 18,432 | |||||||||||||||||||||||
Total troubled debt restructurings | 20,264 | 6,311 | 71 | 687 | 119 | 27,452 | |||||||||||||||||||||||
Total impaired loans | 29,555 | 12,217 | 4,580 | 3,725 | 198 | 50,275 | |||||||||||||||||||||||
Total loans | $ | 1,178,196 | $ | 679,926 | $ | 313,552 | $ | 1,446,578 | $ | 93,910 | $ | 3,712,162 | |||||||||||||||||
-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 the impact of substandard nonperforming loans and substandard troubled debt restructurings. Potential problem loans, which are not included in nonperforming assets, amounted to approximately $65.0 million at December 31, 2013, compared to $105.4 million at December 31, 2012. | ||||||||||||||||||||||||||||
-2 | Troubled debt restructurings are presented as an impaired loan; however, they continue to accrue interest at contractual rates. | ||||||||||||||||||||||||||||
Summary of Recorded Investment, Unpaid Principal Balance and Related Allowance and Average Recorded Investment of Impaired Loans | ' | ||||||||||||||||||||||||||||
The following tables detail the recorded investment, unpaid principal balance and related allowance and average recorded investment of our nonaccrual loans at December 31, 2013, 2012 and 2011 by loan classification and the amount of interest income recognized on a cash basis throughout the year-to-date period then ended, respectively, on these loans that remain on the balance sheets (in thousands): | |||||||||||||||||||||||||||||
At December 31, 2013 | For the year ended | ||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Recorded | Unpaid principal balance | Related | Average recorded investment | Interest income recognized | |||||||||||||||||||||||||
investment | allowance(1) | ||||||||||||||||||||||||||||
Collateral dependent nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial real estate – mortgage | $ | 7,035 | $ | 7,481 | $ | - | $ | 6,522 | $ | - | |||||||||||||||||||
Consumer real estate – mortgage | 2,162 | 2,209 | - | 2,234 | - | ||||||||||||||||||||||||
Construction and land development | 545 | 545 | - | 938 | - | ||||||||||||||||||||||||
Commercial and industrial | 1,828 | 1,901 | - | 3,911 | - | ||||||||||||||||||||||||
Consumer and other | - | - | - | - | - | ||||||||||||||||||||||||
Total | $ | 11,570 | $ | 12,136 | $ | - | $ | 13,605 | $ | - | |||||||||||||||||||
Cash flow dependent nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial real estate – mortgage | $ | 1,982 | $ | 2,166 | $ | 142 | $ | 2,448 | $ | - | |||||||||||||||||||
Consumer real estate – mortgage | 3,127 | 3,334 | 722 | 3,405 | - | ||||||||||||||||||||||||
Construction and land development | 525 | 609 | 33 | 568 | - | ||||||||||||||||||||||||
Commercial and industrial | 737 | 1,029 | 218 | 1,216 | - | ||||||||||||||||||||||||
Consumer and other | 242 | 252 | 72 | 242 | - | ||||||||||||||||||||||||
Total | $ | 6,613 | $ | 7,390 | $ | 1,187 | $ | 7,879 | $ | - | |||||||||||||||||||
Total Nonaccrual Loans | $ | 18,183 | $ | 19,526 | $ | 1,187 | $ | 21,484 | $ | - | |||||||||||||||||||
At December 31, 2012 | For the year ended | ||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Recorded | Unpaid principal balance | Related | Average recorded investment | Interest income recognized | |||||||||||||||||||||||||
investment | allowance(1) | ||||||||||||||||||||||||||||
Collateral dependent nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial real estate – mortgage | $ | 8,740 | $ | 11,187 | $ | - | $ | 11,194 | $ | - | |||||||||||||||||||
Consumer real estate – mortgage | 3,641 | 6,394 | - | 6,394 | - | ||||||||||||||||||||||||
Construction and land development | 1,546 | 2,062 | - | 2,063 | - | ||||||||||||||||||||||||
Commercial and industrial | 1,547 | 1,761 | - | 1,896 | - | ||||||||||||||||||||||||
Consumer and other | - | - | - | - | - | ||||||||||||||||||||||||
Total | $ | 15,474 | $ | 21,404 | $ | - | $ | 21,547 | $ | - | |||||||||||||||||||
Cash flow dependent nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial real estate – mortgage | $ | 551 | $ | 1,841 | $ | 154 | $ | 3,228 | $ | - | |||||||||||||||||||
Consumer real estate – mortgage | 2,265 | 4,473 | 573 | 5,828 | - | ||||||||||||||||||||||||
Construction and land development | 2,963 | 4,701 | 201 | 5,102 | - | ||||||||||||||||||||||||
Commercial and industrial | 1,491 | 2,459 | 814 | 2,528 | - | ||||||||||||||||||||||||
Consumer and other | 79 | 179 | 22 | 180 | - | ||||||||||||||||||||||||
Total | $ | 7,349 | $ | 13,653 | $ | 1,764 | $ | 16,866 | $ | - | |||||||||||||||||||
Total Nonaccrual Loans | $ | 22,823 | $ | 35,057 | $ | 1,764 | $ | 38,413 | $ | - | |||||||||||||||||||
At December 31, 2011 | For the year ended | ||||||||||||||||||||||||||||
31-Dec-11 | |||||||||||||||||||||||||||||
Recorded | Unpaid principal balance | Related | Average recorded investment | Interest income recognized | |||||||||||||||||||||||||
investment | allowance(1) | ||||||||||||||||||||||||||||
Collateral dependent nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial real estate – mortgage | $ | 9,345 | $ | 12,099 | $ | - | $ | 12,450 | $ | 5 | |||||||||||||||||||
Consumer real estate – mortgage | 9,248 | 9,961 | - | 10,140 | - | ||||||||||||||||||||||||
Construction and land development | 6,917 | 9,093 | - | 9,288 | 37 | ||||||||||||||||||||||||
Commercial and industrial | 3,036 | 3,546 | - | 3,689 | - | ||||||||||||||||||||||||
Consumer and other | - | - | - | - | - | ||||||||||||||||||||||||
Total | $ | 28,546 | $ | 34,699 | $ | - | $ | 35,567 | $ | 42 | |||||||||||||||||||
Cash flow dependent nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial real estate – mortgage | $ | 617 | $ | 661 | $ | 57 | $ | 792 | $ | - | |||||||||||||||||||
Consumer real estate – mortgage | 3,239 | 4,902 | 301 | 5,005 | - | ||||||||||||||||||||||||
Construction and land development | 6,048 | 6,822 | 1,264 | 7,074 | - | ||||||||||||||||||||||||
Commercial and industrial | 8,854 | 11,041 | 2,767 | 11,497 | - | ||||||||||||||||||||||||
Consumer and other | 551 | 856 | 51 | 857 | - | ||||||||||||||||||||||||
Total | $ | 19,309 | $ | 24,282 | $ | 4,440 | $ | 25,225 | $ | - | |||||||||||||||||||
Total Nonaccrual Loans | $ | 47,855 | $ | 58,981 | $ | 4,440 | $ | 60,792 | $ | 42 | |||||||||||||||||||
-1 | Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. | ||||||||||||||||||||||||||||
Amount of Troubled Debt Restructuring Categorized by Loan Classification | ' | ||||||||||||||||||||||||||||
The following table outlines the amount of each troubled debt restructuring by loan classification made during the year ended December 31, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||
Number | Pre | Post Modification Outstanding Recorded Investment, net of related allowance | Number of contracts | Pre | Post | ||||||||||||||||||||||||
of contracts | Modification Outstanding Recorded | Modification Outstanding Recorded | Modification Outstanding Recorded Investment, net of related allowance | ||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||
Commercial real estate – mortgage | - | $ | - | $ | - | 4 | $ | 11,539 | $ | 10,022 | |||||||||||||||||||
Consumer real estate – mortgage | 1 | 500 | 427 | 4 | 834 | 718 | |||||||||||||||||||||||
Construction and land development | 1 | 56 | 49 | - | - | - | |||||||||||||||||||||||
Commercial and industrial | 2 | 1,750 | 1,535 | - | - | - | |||||||||||||||||||||||
Consumer and other | 2 | 277 | 243 | 1 | 36 | 31 | |||||||||||||||||||||||
6 | $ | 2,583 | $ | 2,254 | 9 | $ | 12,409 | $ | 10,771 | ||||||||||||||||||||
Summary of Loan Portfolio Credit Risk Exposure | ' | ||||||||||||||||||||||||||||
In addition to the loan metrics above, Pinnacle Financial analyzes its commercial loan portfolio to determine if a concentration of credit risk exists to any industries. Pinnacle Financial utilizes broadly accepted industry classification systems in order to classify borrowers into various industry classifications. Pinnacle Financial has a credit exposure (loans outstanding plus unfunded lines of credit) exceeding 25% of Pinnacle Bank's total risk-based capital to borrowers in the following industries at December 31, 2013 with the comparative exposures for December 31, 2012 (in thousands): | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
Outstanding Principal Balances | Unfunded Commitments | Total exposure | Total Exposure at December 31, 2012 | ||||||||||||||||||||||||||
Lessors of nonresidential buildings | $ | 471,978 | $ | 43,262 | $ | 515,240 | $ | 440,237 | |||||||||||||||||||||
Lessors of residential buildings | 242,029 | 28,744 | 270,773 | 215,899 | |||||||||||||||||||||||||
Past Due Balances by Loan Classification | ' | ||||||||||||||||||||||||||||
The table below presents past due balances at December 31, 2013 and 2012, by loan classification and segment allocated between performing and nonperforming status (in thousands): | |||||||||||||||||||||||||||||
31-Dec-13 | 30-89 days past due and performing | 90 days or more past due and performing | Total past due and performing | Nonperforming(1) | Current | Total | |||||||||||||||||||||||
and performing | Loans | ||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner-occupied | $ | 2,534 | $ | - | $ | 2,534 | $ | 7,750 | $ | 669,014 | $ | 679,298 | |||||||||||||||||
All other | 27 | 2,232 | 2,259 | 1,267 | 700,611 | 704,137 | |||||||||||||||||||||||
Consumer real estate – mortgage | 2,215 | - | 2,215 | 5,289 | 688,112 | 695,616 | |||||||||||||||||||||||
Construction and land development | 4,839 | - | 4,839 | 1,070 | 310,282 | 316,191 | |||||||||||||||||||||||
Commercial and industrial | 1,847 | 825 | 2,672 | 2,565 | 1,600,310 | 1,605,547 | |||||||||||||||||||||||
Consumer and other | 1,488 | 289 | 1,777 | 242 | 141,685 | 143,704 | |||||||||||||||||||||||
$ | 12,950 | $ | 3,346 | $ | 16,296 | $ | 18,183 | $ | 4,110,014 | $ | 4,144,493 | ||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner-occupied | $ | 462 | $ | - | $ | 462 | $ | 8,091 | $ | 585,848 | $ | 594,401 | |||||||||||||||||
All other | 41 | - | 41 | 1,200 | 582,554 | 583,795 | |||||||||||||||||||||||
Consumer real estate – mortgage | 3,870 | - | 3,870 | 5,906 | 670,150 | 679,926 | |||||||||||||||||||||||
Construction and land development | 3,511 | - | 3,511 | 4,509 | 305,532 | 313,552 | |||||||||||||||||||||||
Commercial and industrial | 2,549 | - | 2,549 | 3,038 | 1,440,991 | 1,446,578 | |||||||||||||||||||||||
Consumer and other | 444 | - | 444 | 79 | 93,387 | 93,910 | |||||||||||||||||||||||
$ | 10,877 | $ | - | $ | 10,877 | $ | 22,823 | $ | 3,678,462 | $ | 3,712,162 | ||||||||||||||||||
-1 | Approximately $10.9 million and $9.4 million of nonaccrual loans as of December 31, 2013 and 2012, respectively, are currently performing pursuant to their contractual terms. | ||||||||||||||||||||||||||||
Details of Changes in the Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||
The following table shows the allowance allocation by loan classification for accruing and nonperforming loans at December 31, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||
Accruing Loans | Nonaccrual Loans | Troubled Debt Restructurings(1) | Total Allowance | ||||||||||||||||||||||||||
for Loan Losses | |||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||
Commercial real estate –mortgage | $ | 19,298 | $ | 16,642 | $ | 142 | $ | 154 | $ | 1,932 | $ | 2,838 | $ | 21,372 | $ | 19,634 | |||||||||||||
Consumer real estate – mortgage | 7,090 | 7,336 | 722 | 573 | 543 | 853 | 8,355 | 8,762 | |||||||||||||||||||||
Construction and land development | 7,186 | 8,953 | 33 | 201 | 16 | 10 | 7,235 | 9,164 | |||||||||||||||||||||
Commercial and industrial | 24,660 | 23,829 | 218 | 814 | 256 | 95 | 25,134 | 24,738 | |||||||||||||||||||||
Consumer and other | 1,521 | 1,055 | 72 | 22 | 39 | 17 | 1,632 | 1,094 | |||||||||||||||||||||
Unallocated | - | - | - | - | - | - | 4,242 | 6,025 | |||||||||||||||||||||
$ | 59,755 | $ | 57,815 | $ | 1,187 | $ | 1,764 | $ | 2,786 | $ | 3,813 | $ | 67,970 | $ | 69,417 | ||||||||||||||
-1 | Troubled debt restructurings of $19.6 million and $27.5 million as of December 31, 2013 and 2012, respectively, are classified as impaired loans pursuant to U.S. GAAP; however, these loans continue to accrue interest at contractual rates. | ||||||||||||||||||||||||||||
The following table details the changes in the allowance for loan losses from December 31, 2011 to December 31, 2012 to December 31, 2013 by loan classification (in thousands): | |||||||||||||||||||||||||||||
Commercial real estate – | Consumer real estate – mortgage | Construction and land development | Commercial and industrial | Consumer and other | Unallocated | Total | |||||||||||||||||||||||
mortgage | |||||||||||||||||||||||||||||
Balances, December 31, 2010 | $ | 19,252 | $ | 9,898 | $ | 19,122 | $ | 21,426 | $ | 1,874 | $ | 11,003 | $ | 82,575 | |||||||||||||||
Charged-off loans | (3,044 | ) | (5,076 | ) | (10,157 | ) | (15,360 | ) | (1,213 | ) | - | (34,850 | ) | ||||||||||||||||
Recovery of previously charged-off loans | 116 | 495 | 1,530 | 2,167 | 144 | - | 4,452 | ||||||||||||||||||||||
Provision for loan losses | 7,073 | 4,985 | 1,545 | 12,556 | 320 | (4,681 | ) | 21,798 | |||||||||||||||||||||
Balances, December 31, 2011 | $ | 23,397 | $ | 10,302 | $ | 12,040 | $ | 20,789 | $ | 1,125 | $ | 6,322 | $ | 73,975 | |||||||||||||||
Charged-off loans | (4,667 | ) | (6,731 | ) | (2,530 | ) | (4,612 | ) | (1,117 | ) | - | (19,657 | ) | ||||||||||||||||
Recovery of previously charged-off loans | 285 | 818 | 1,155 | 7,175 | 97 | - | 9,530 | ||||||||||||||||||||||
Provision for loan losses | 619 | 4,373 | (1,501 | ) | 1,386 | 989 | (297 | ) | 5,569 | ||||||||||||||||||||
Balances, December 31, 2012 | $ | 19,634 | $ | 8,762 | $ | 9,164 | $ | 24,738 | $ | 1,094 | $ | 6,025 | $ | 69,417 | |||||||||||||||
Charged-off loans | (4,123 | ) | (2,250 | ) | (1,351 | ) | (8,159 | ) | (1,369 | ) | - | (17,252 | ) | ||||||||||||||||
Recovery of previously charged-off loans | 500 | 1,209 | 1,464 | 4,531 | 244 | - | 7,948 | ||||||||||||||||||||||
Provision for loan losses | 5,361 | 634 | (2,042 | ) | 4,024 | 1,663 | (1,783 | ) | 7,857 | ||||||||||||||||||||
Balances, December 31, 2013 | $ | 21,372 | $ | 8,355 | $ | 7,235 | $ | 25,134 | $ | 1,632 | $ | 4,242 | $ | 67,970 |
Premises_and_Equipment_and_Lea1
Premises and Equipment and Lease Commitments (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Premises and Equipment and Lease Commitments [Abstract] | ' | |||||||||
Schedule of Premises and Equipment | ' | |||||||||
Premises and equipment at December 31, 2013 and 2012 are summarized as follows (in thousands): | ||||||||||
Range of Useful Lives | 2013 | 2012 | ||||||||
Land | Not applicable | $ | 19,281 | $ | 19,256 | |||||
Buildings | 15 to 30 years | 48,558 | 47,918 | |||||||
Leasehold improvements | 15 to 20 years | 20,283 | 19,031 | |||||||
Furniture and equipment | 3 to 15 years | 51,673 | 50,711 | |||||||
139,795 | 136,916 | |||||||||
Accumulated depreciation and amortization | (67,145 | ) | (61,111 | ) | ||||||
$ | 72,650 | $ | 75,805 | |||||||
Schedule of Future Minimum Lease Payments Due Under Operating Leases | ' | |||||||||
Pinnacle Financial has entered into various operating leases, primarily for office space and branch facilities. Rent expense related to these leases for 2013, 2012 and 2011 totaled $4.4 million, $4.1 million and $3.8 million, respectively. At December 31, 2013, the approximate future minimum lease payments due under the aforementioned operating leases for their base term are as follows (in thousands): | ||||||||||
2014 | $ | 4,202 | ||||||||
2015 | 4,093 | |||||||||
2016 | 4,189 | |||||||||
2017 | 4,042 | |||||||||
2018 | 3,829 | |||||||||
Thereafter | 29,017 | |||||||||
$ | 49,372 |
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Deposits [Abstract] | ' | ||||
Scheduled Maturities of Time Deposits | ' | ||||
At December 31, 2013, the scheduled maturities of time deposits are as follows (in thousands): | |||||
2014 | $ | 370,295 | |||
2015 | 91,743 | ||||
2016 | 32,931 | ||||
2017 | 22,186 | ||||
2018 | 1,858 | ||||
Thereafter | 36 | ||||
$ | 519,049 |
Federal_Home_Loan_Bank_Advance1
Federal Home Loan Bank Advances (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Federal Home Loan Bank Advances [Abstract] | ' | ||||||||
Scheduled Maturities of Advances and Interest Rates | ' | ||||||||
At December 31, 2013 and 2012, Pinnacle Financial had received advances from the FHLB totaling $90,479,000 and $75,609,000, respectively. Additionally, Pinnacle Financial recognized a discount on FHLB advances in conjunction with previous acquisitions. The remaining discount was $158,000 and $241,000 at December 31, 2013 and 2012, respectively. At December 31, 2013, the scheduled maturities of these advances and interest rates are as follows (in thousands): | |||||||||
Scheduled Maturities | Weighted average interest rates | ||||||||
2014 | $ | 75,000 | 0.12 | % | |||||
2015 | - | - | |||||||
2016 | 15,000 | 2.39 | % | ||||||
2017 | - | - | |||||||
2018 | 12 | 2 | % | ||||||
Thereafter | 467 | 2.45 | % | ||||||
$ | 90,479 | ||||||||
Weighted average interest rate | 0.51 | % |
Investments_in_Affiliated_Comp1
Investments in Affiliated Companies and Subordinated Debt (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investments in Affiliated Companies and Subordinated Debt [Abstract] | ' | ||||||||||||||||
Details of the Trust established | ' | ||||||||||||||||
Beginning on December 29, 2003, Pinnacle Financial established Trusts that were created for the exclusive purpose of issuing 30-year capital trust preferred securities and used the proceeds to acquire junior subordinated debentures (Subordinated Debentures) issued by Pinnacle Financial. The sole assets of the Trusts are the Subordinated Debentures. The $2,476,000 investment in the Trusts is included in other investments in the accompanying consolidated balance sheets and the $82,476,000 obligation is reflected as subordinated debt. The details of the Trusts established are as follows: | |||||||||||||||||
Date | Maturity | Common | Trust Preferred Securities | Floating Interest Rate | Interest Rate at December 31, 2013 | ||||||||||||
Established | Securities | ||||||||||||||||
Trust I | 29-Dec-03 | 30-Dec-33 | $ | 310,000 | $ | 10,000,000 | Libor + 2.80% | 3.04 | % | ||||||||
Trust II | 15-Sep-05 | 30-Sep-35 | 619,000 | 20,000,000 | Libor + 1.40% | 1.65 | % | ||||||||||
Trust III | 7-Sep-06 | 30-Sep-36 | 619,000 | 20,000,000 | Libor + 1.65% | 1.9 | % | ||||||||||
Trust IV | 31-Oct-07 | 30-Sep-37 | 928,000 | 30,000,000 | Libor + 2.85% | 3.09 | % | ||||||||||
Combined summary financial information for the Trusts | ' | ||||||||||||||||
Combined summary financial information for the Trusts follows (in thousands): | |||||||||||||||||
Combined Summary Balance Sheets | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||
Asset – Investment in subordinated debentures issued by Pinnacle Financial | $ | 82,476 | $ | 82,476 | |||||||||||||
Liabilities | $ | - | $ | - | |||||||||||||
Stockholder's equity – Trust preferred securities | 80,000 | 80,000 | |||||||||||||||
Common securities (100% owned by Pinnacle Financial) | 2,476 | 2,476 | |||||||||||||||
Total stockholder's equity | 82,476 | 82,476 | |||||||||||||||
Total liabilities and stockholder's equity | $ | 82,476 | $ | 82,476 | |||||||||||||
Combined Summary Income Statements | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Income – Interest income from subordinated debentures issued by Pinnacle Financial | $ | 2,057 | $ | 2,218 | $ | 2,082 | |||||||||||
Net Income | $ | 2,057 | $ | 2,218 | $ | 2,082 | |||||||||||
Combined Summary Statements of Stockholder's Equity | |||||||||||||||||
Trust | Total | Retained | Stockholder's | ||||||||||||||
Preferred | Common | Earnings | Equity | ||||||||||||||
Securities | Stock | ||||||||||||||||
Balances, December 31, 2010 | $ | 80,000 | $ | 2,476 | $ | - | $ | 82,476 | |||||||||
Net income | - | - | 2,082 | 2,082 | |||||||||||||
Issuance of trust preferred securities | - | - | - | - | |||||||||||||
Dividends: | |||||||||||||||||
Trust preferred securities | - | - | (2,017 | ) | (2,017 | ) | |||||||||||
Common- paid to Pinnacle Financial | - | - | (65 | ) | (65 | ) | |||||||||||
Balances, December 31, 2011 | $ | 80,000 | $ | 2,476 | $ | - | $ | 82,476 | |||||||||
Net income | - | - | 2,218 | 2,218 | |||||||||||||
Issuance of trust preferred securities | - | - | - | - | |||||||||||||
Dividends: | |||||||||||||||||
Trust preferred securities | - | - | (2,151 | ) | (2,151 | ) | |||||||||||
Common- paid to Pinnacle Financial | - | - | (67 | ) | (67 | ) | |||||||||||
Balances, December 31, 2012 | $ | 80,000 | $ | 2,476 | $ | - | $ | 82,476 | |||||||||
Net income | - | - | 2,057 | 2,057 | |||||||||||||
Issuance of trust preferred securities | - | - | - | - | |||||||||||||
Dividends: | |||||||||||||||||
Trust preferred securities | - | - | (1,995 | ) | (1,995 | ) | |||||||||||
Common- paid to Pinnacle Financial | - | - | (62 | ) | (62 | ) | |||||||||||
Balances, December 31, 2013 | $ | 80,000 | $ | 2,476 | $ | - | $ | 82,476 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Income tax expense (benefit) attributable to continuing operations | ' | ||||||||||||
Income tax expense (benefit) attributable to continuing operations for each of the years ended December 31 is as follows (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current tax expense : | |||||||||||||
Federal | $ | 26,317 | $ | 19,096 | $ | 8,157 | |||||||
State | - | - | - | ||||||||||
Total current tax expense | 26,317 | 19,096 | 8,157 | ||||||||||
Deferred tax expense (benefit): | |||||||||||||
Federal | 240 | 485 | (19,646 | ) | |||||||||
State | 1,601 | 1,063 | (3,749 | ) | |||||||||
Total deferred tax expense (benefit) | 1,841 | 1,548 | (23,395 | ) | |||||||||
Total income tax expense (benefit) | $ | 28,158 | $ | 20,644 | $ | (15,238 | ) | ||||||
Income tax rate reconciliation | ' | ||||||||||||
Pinnacle Financial's income tax expense (benefit) differs from the amounts computed by applying the Federal income tax statutory rates of 35% to income (loss) before income taxes. A reconciliation of the differences for each of the years in the three-year period ended December 31, 2013 is as follows (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax expense at statutory rate | $ | 30,059 | $ | 21,885 | $ | 9,975 | |||||||
State excise tax expense (benefit), net of federal tax effect | 1,601 | 1,063 | (255 | ) | |||||||||
Tax-exempt securities | (2,603 | ) | (2,517 | ) | (2,655 | ) | |||||||
Federal tax credits | - | - | - | ||||||||||
Bank owned life insurance | (740 | ) | (322 | ) | (406 | ) | |||||||
Insurance premiums | (349 | ) | (243 | ) | (151 | ) | |||||||
Other items | 190 | 778 | 734 | ||||||||||
Deferred tax valuation allowance | - | - | (22,480 | ) | |||||||||
Income tax expense (benefit) | $ | 28,158 | $ | 20,644 | $ | (15,238 | ) | ||||||
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, 2013 and 2012 are as follows (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Loan loss allowance | $ | 26,134 | $ | 26,777 | |||||||||
Loans | 914 | 423 | |||||||||||
Insurance | 732 | 691 | |||||||||||
Accrued liability for supplemental retirement agreements | 538 | 510 | |||||||||||
Restricted stock and stock options | 4,100 | 3,777 | |||||||||||
Net operating loss carryforward | 1,914 | 3,593 | |||||||||||
Other real estate owned | 2,231 | 3,222 | |||||||||||
Other deferred tax assets | 1,177 | 1,430 | |||||||||||
Total deferred tax assets | 37,740 | 40,423 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | 6,145 | 7,110 | |||||||||||
Core deposit intangible asset | 1,242 | 1,700 | |||||||||||
Securities | (1,704 | ) | 12,024 | ||||||||||
Cash flow hedge | 2,591 | - | |||||||||||
REIT dividends | 1,393 | 371 | |||||||||||
FHLB related liabilities | 1,316 | 1,724 | |||||||||||
Other deferred tax liabilities | 521 | 554 | |||||||||||
Total deferred tax liabilities | 11,504 | 23,483 | |||||||||||
Net deferred tax assets | $ | 26,236 | $ | 16,940 |
Stock_Options_Stock_Appreciati1
Stock Options, Stock Appreciation Rights, Restricted Shares and Salary Stock Units (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Stock Options, Stock Appreciation Rights, Restricted Shares and Salary Stock Units [Abstract] | ' | ||||||||||
Summary of Stock Option and Stock Appreciation Rights Activity | ' | ||||||||||
A summary of stock option and stock appreciation right activity within the equity incentive plans during each of the years in the three-year period ended December 31, 2013 and information regarding expected vesting, contractual terms remaining, intrinsic values and other matters was as follows: | |||||||||||
Number | Weighted- | Weighted- | Aggregate | ||||||||
Average | Average | Intrinsic | |||||||||
Exercise | Contractual | Value (1) | |||||||||
Price | Remaining Term | (000's) | |||||||||
(in years) | |||||||||||
Outstanding at December 31, 2010 | 1,795,785 | $ | 19.49 | ||||||||
Granted | - | - | |||||||||
Stock options exercised | (163,829 | ) | 6.2 | ||||||||
Stock appreciation rights exercised (2) | - | 15.6 | |||||||||
Forfeited | (50,918 | ) | 23.44 | ||||||||
Outstanding at December 31, 2011 | 1,581,038 | $ | 20.81 | ||||||||
Granted | - | - | |||||||||
Stock options exercised | (245,201 | ) | 6.78 | ||||||||
Stock appreciation rights exercised (2) | (348 | ) | 15.6 | ||||||||
Forfeited | (17,108 | ) | 25.9 | ||||||||
Outstanding at December 31, 2012 | 1,318,381 | $ | 23.36 | ||||||||
Granted | - | - | |||||||||
Stock options exercised | (279,534 | ) | 14.07 | ||||||||
Stock appreciation rights exercised (2) | (1,732 | ) | 15.6 | ||||||||
Forfeited | (34,615 | ) | 29.31 | ||||||||
Outstanding at December 31, 2013 | 1,002,500 | $ | 25.77 | 2.48 | $7,097 | ||||||
Options exercisable at December 31, 2013 | 1,002,500 | $ | 25.77 | 2.48 | $7,097 | ||||||
-1 | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of Pinnacle Financial common stock of $32.53 per common share at December 31, 2013 for the 931,425 options and stock appreciation rights that were in-the-money at December 31, 2013. | ||||||||||
-2 | The 348 stock appreciation rights exercised during 2012 settled in 28 shares of Pinnacle Financial common stock. The 1,732 stock appreciation rights exercised during 2013 settled in 471 shares of Pinnacle Financial common stock. | ||||||||||
Schedule of Share Based Compensation Expense | ' | ||||||||||
Pinnacle Financial adopted ASC 718-20 Compensation using the modified prospective transition method on January 1, 2006. Accordingly, during the three-years ended December 31, 2013, Pinnacle Financial recorded stock-based compensation expense using the Black-Scholes valuation model for awards granted prior to, but not yet vested, as of January 1, 2006 and for all stock-based awards granted after January 1, 2006, based on fair value estimates using the Black-Scholes valuation model. For these awards, Pinnacle Financial has recognized compensation expense using a straight-line amortization method. As ASC 718-20 requires that stock-based compensation expense be based on awards that are ultimately expected to vest, stock-based compensation for the years ended December 31, 2013, 2012, and 2011 has been reduced for estimated forfeitures. The impact on the results of operations (compensation and employee benefits expense) and earnings per share of recording stock-based compensation in accordance with ASC 718-20 (related to stock option awards) for the three-year period ended December 31, 2013 was as follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Non-qualified stock options | |||||||||||
Stock-based compensation expense | $ | 12,470 | $ | 394,466 | $ | 1,196,059 | |||||
Income tax benefit | 4,892 | 154,749 | 469,214 | ||||||||
Stock-based compensation expense after income tax benefit | $ | 7,578 | $ | 239,717 | $ | 726,845 | |||||
Impact on per share results from stock-based compensation: | |||||||||||
Basic | $ | 0 | $ | 0.01 | $ | 0.02 | |||||
Fully diluted | $ | 0 | $ | 0.01 | $ | 0.02 | |||||
Summary of Activity for Unvested Restricted Share Awards | ' | ||||||||||
A summary of activity for unvested restricted share awards for the years ended December 31, 2013, 2012, and 2011 follows: | |||||||||||
Number | Grant Date Weighted-Average Cost | ||||||||||
Unvested at December 31, 2010 | 640,394 | $ | 17.63 | ||||||||
Shares awarded | 361,966 | 13.38 | |||||||||
Restrictions lapsed and shares released to associates/directors | (90,406 | ) | 17.62 | ||||||||
Shares forfeited | (62,251 | ) | 20.66 | ||||||||
Unvested at December 31, 2011 | 849,703 | $ | 15.61 | ||||||||
Shares awarded | 156,645 | 16.48 | |||||||||
Restrictions lapsed and shares released to associates/directors | (211,913 | ) | 16.28 | ||||||||
Shares forfeited | (54,526 | ) | 18.23 | ||||||||
Unvested at December 31, 2012 | 739,909 | $ | 15.45 | ||||||||
Shares awarded | 164,602 | 21.78 | |||||||||
Conversion of restricted share units to restricted share awards | 193,189 | 21.51 | |||||||||
Restrictions lapsed and shares released to associates/directors | (221,325 | ) | 15.97 | ||||||||
Shares forfeited | (54,680 | ) | 15.3 | ||||||||
Unvested at December 31, 2013 | 821,695 | $ | 19.18 | ||||||||
Pinnacle Financial grants restricted share awards to associates, executive management and outside directors with a combination of time and performance 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, 2013. The table below reflects the life-to-date activity for these awards: | |||||||||||
Grant | Group(1) | Vesting | Shares | Restrictions Lapsed and shares released to participants(1) | Shares Withheld | Shares Forfeited by participants | Shares Unvested | ||||
Year | Period in years | awarded | for taxes by participants(1) | ||||||||
Time Based Awards (2) | |||||||||||
2011 | Associates | 5 | 144,145 | 40,988 | 13,396 | 14,442 | 75,319 | ||||
2012 | Associates | 5 | 141,665 | 19,617 | 7,156 | 11,200 | 103,692 | ||||
2013 | Associates | 5 | 150,125 | - | - | 3,675 | 146,450 | ||||
Performance Based Awards (3) | |||||||||||
2011 | Leadership team (4) | 10 | 152,093 | 32,679 | 11,774 | 5,173 | 102,467 | ||||
2011 | Leadership team (5) | 3 | 29,595 | 7,162 | 2,701 | - | 19,732 | ||||
2011 | Leadership team (5) | 3 | 21,097 | 9,746 | 3,285 | 1,883 | 6,183 | ||||
2013 | Leadership team(6) | 5 | 193,189 | - | - | - | 193,189 | ||||
Outside Director Awards (7) | |||||||||||
2011 | Outside directors | 1 | 15,036 | 10,339 | 2,191 | 2,506 | - | ||||
2012 | Outside directors | 1 | 14,980 | 12,730 | 2,250 | - | - | ||||
2013 | Outside directors | 1 | 14,477 | 1,129 | - | - | 13,348 | ||||
-1 | Groups include our employees (referred to as associates above), our executive managers (referred to as our Leadership Team above) and our outside directors. Included in the Leadership Team awards noted above are awards to our named executive officers. When the restricted shares are awarded, a participant receives voting rights with respect to the shares, but is not able to transfer the shares other than to Pinnacle Financial in satisfaction of withholding tax obligations until the later of the date that the forfeiture restrictions have lapsed and, for awards issued prior to the redemption of the preferred stock issued under the CPP, the later of the date that the forfeiture restrictions lapse and the date we redeemed the remaining outstanding shares of Series A preferred stock issued to the US Treasury pursuant to the CPP, which was completed on June 21, 2012. Once the forfeiture restrictions lapse, the participant is taxed on the value of the award and may elect to sell shares to pay the applicable income taxes associated with the award or have these shares remitted to Pinnacle Financial. | ||||||||||
-2 | These shares vest in equal annual installments on the first five anniversary dates of the grant. | ||||||||||
-3 | The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain earnings and soundness targets over each year of the subsequent vesting period (or alternatively, the cumulative vesting period), excluding the impact of any merger related expenses. For those grants with a 10 year vesting period, the vesting period for an individual award is equal to ten years or the number of years remaining before an associate reaches the age of 65, whichever is less. | ||||||||||
-4 | These awards include a provision that the shares do not vest if Pinnacle Financial is not profitable for the fiscal year immediately preceding the vesting date. | ||||||||||
-5 | The forfeiture restrictions on these restricted share awards lapse in installments as follows: 66.6% on the second anniversary date should Pinnacle Financial achieve certain earnings and soundness targets, and 33.4% on the third anniversary date should Pinnacle Financial achieve certain earnings and soundness targets in each of these periods (or, alternatively, the cumulative three-year period). | ||||||||||
-6 | The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve soundness targets over each year of the subsequent vesting period. | ||||||||||
-7 | Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapsed on the one year anniversary date of the award based on each individual board member meeting his/her attendance goals for the various board and board committee meetings to which each member was scheduled to attend. |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Derivative Instruments [Abstract] | ' | |||||||||||||||||||
Summary of Interest Rate Swaps | ' | |||||||||||||||||||
A summary of Pinnacle Financial's interest rate swaps to facilitate customer transactions as of December 31, 2013 is included in the following table (in thousands): | ||||||||||||||||||||
At December 31, 2013 | At December 31, 2012 | |||||||||||||||||||
Notional | Estimated Fair Value | Notional Amount | Estimated Fair Value | |||||||||||||||||
Amount | ||||||||||||||||||||
Interest rate swap agreements: | ||||||||||||||||||||
Pay fixed / receive variable swaps | $ | 294,486 | $ | 13,296 | $ | 236,377 | $ | 16,132 | ||||||||||||
Pay variable / receive fixed swaps | 294,486 | (13,670 | ) | 236,377 | (16,366 | ) | ||||||||||||||
Total | $ | 588,972 | $ | (374 | ) | $ | 472,754 | $ | (234 | ) | ||||||||||
During 2013, Pinnacle Financial entered into a forward cash flow hedge relationship to manage our future interest rate exposure. The hedging strategy converts the LIBOR based variable interest rate on forecasted borrowings to a fixed interest rate and protects Pinnacle Financial from floating interest rate variability. The terms of the individual contracts within the relationship are as follows (in thousands): | ||||||||||||||||||||
Forecasted | Variable | Fixed | Term | Asset/ | Unrealized Gain in Accumulated Other Comprehensive Income | |||||||||||||||
Notional | Interest | Interest | (Liabilities) | |||||||||||||||||
Amount | Rate (1) | Rate(1) | ||||||||||||||||||
Interest Rate Swap | $ | 33,000 | 3 month LIBOR | 1.428 | % | April 2015-April 2018 | $ | 463 | $ | 281 | ||||||||||
Interest Rate Swap | 33,000 | 3 month LIBOR | 1.857 | % | Oct. 2015-April 2019 | 837 | 509 | |||||||||||||
Interest Rate Swap | 33,000 | 3 month LIBOR | 1.996 | % | Oct. 2015-Oct. 2019 | 1,007 | 612 | |||||||||||||
Interest Rate Swap | 33,000 | 3 month LIBOR | 2.265 | % | April 2016-April 2020 | 1,172 | 712 | |||||||||||||
Interest Rate Swap | 33,000 | 3 month LIBOR | 2.646 | % | April 2016-April 2022 | 1,818 | 1,105 | |||||||||||||
Interest Rate Swap | 33,000 | 3 month LIBOR | 2.523 | % | Oct. 2016-Oct. 2020 | 1,307 | 795 | |||||||||||||
$ | 198,000 | $ | 6,604 | $ | 4,014 | |||||||||||||||
________ | ||||||||||||||||||||
-1 | Pinnacle Financial will pay the fixed interest rate and the counterparties pay Pinnacle Financial the variable rate. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||||||
The following tables present the financial instruments carried at fair value as of December 31, 2013 and 2012, by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands): | |||||||||||||||||||||
31-Dec-13 | 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 | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||
U.S. government agency securities | $ | 103,873 | $ | - | $ | 103,873 | $ | - | |||||||||||||
Mortgage-backed securities | 412,936 | - | 412,936 | - | |||||||||||||||||
State and municipal securities | 148,411 | - | 148,411 | - | |||||||||||||||||
Asset-backed securities | 17,007 | 17,007 | |||||||||||||||||||
Corporate notes and other | 11,229 | - | 11,229 | - | |||||||||||||||||
Total investment securities available-for-sale | 693,456 | - | 693,456 | $ | - | ||||||||||||||||
Alternative investments | 6,701 | - | - | 6,701 | |||||||||||||||||
Other assets | 19,900 | - | 19,900 | - | |||||||||||||||||
Total assets at fair value | $ | 720,057 | $ | - | $ | 713,356 | $ | 6,701 | |||||||||||||
Other liabilities | $ | 13,670 | $ | - | $ | 13,670 | $ | - | |||||||||||||
Total liabilities at fair value | $ | 13,670 | $ | - | $ | 13,670 | $ | - | |||||||||||||
31-Dec-12 | |||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||
U.S. government agency securities | $ | 110,452 | $ | - | $ | 110,452 | $ | - | |||||||||||||
Mortgage-backed securities | 375,651 | - | 375,651 | - | |||||||||||||||||
State and municipal securities | 191,727 | - | 191,727 | - | |||||||||||||||||
Asset-backed securities | 17,352 | 17,352 | - | ||||||||||||||||||
Corporate notes and other | 11,396 | - | 11,396 | - | |||||||||||||||||
Total investment securities available-for-sale | 706,578 | - | 706,578 | - | |||||||||||||||||
Alternative investments | 4,214 | - | - | 4,214 | |||||||||||||||||
Other assets | 16,599 | - | 16,132 | 467 | |||||||||||||||||
Total assets at fair value | $ | 727,391 | $ | - | $ | 722,710 | $ | 4,681 | |||||||||||||
Other liabilities | $ | 16,366 | $ | - | $ | 16,366 | $ | - | |||||||||||||
Total liabilities at fair value | $ | 16,366 | $ | - | $ | 16,366 | $ | - | |||||||||||||
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, 2013 and 2012 (in thousands): | |||||||||||||||||||||
31-Dec-13 | 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 | Total losses for the period ended | ||||||||||||||||
(Level 1) | (Level 2) | parameters | |||||||||||||||||||
(Level 3) | |||||||||||||||||||||
Other real estate owned | $ | 15,226 | $ | - | $ | - | $ | 15,226 | $ | (2,258 | ) | ||||||||||
Nonaccrual loans, net (1) | 16,996 | - | - | 16,996 | (2,921 | ) | |||||||||||||||
Total | $ | 32,222 | $ | - | $ | - | $ | 32,222 | $ | (5,179 | ) | ||||||||||
31-Dec-12 | |||||||||||||||||||||
Other real estate owned | $ | 18,580 | $ | - | $ | - | $ | 18,580 | $ | (5,428 | ) | ||||||||||
Nonaccrual loans, net (1) | 21,059 | - | - | 21,059 | (4,745 | ) | |||||||||||||||
Total | $ | 39,639 | $ | - | $ | - | $ | 39,639 | $ | (10,173 | ) | ||||||||||
-1 | Amount is net of a valuation allowance of $1.2 million and $1.8 million at December 31, 2013 and 2012, respectively, as required by ASC 310-10, "Receivables." | ||||||||||||||||||||
Rollforward of the Balance Sheet Amounts, Unobservable Input Reconciliation | ' | ||||||||||||||||||||
The table below includes a rollforward of the balance sheet amounts for the year ended December 31, 2013 (including the change in fair value) for financial instruments classified by Pinnacle Financial within Level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources), the gains and losses in the table below include 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, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Other | Other liabilities | Other | Other liabilities | ||||||||||||||||||
assets | assets | ||||||||||||||||||||
Fair value, January 1 | $ | 4,681 | $ | - | $ | 3,899 | $ | - | |||||||||||||
Total net realized losses included in income | (344 | ) | - | (102 | ) | - | |||||||||||||||
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at December 31 | - | - | - | - | |||||||||||||||||
Purchases | 2,517 | - | 1,287 | - | |||||||||||||||||
Issuances | - | - | - | - | |||||||||||||||||
Settlements | (153 | ) | - | (403 | ) | - | |||||||||||||||
Transfers out of Level 3 | - | - | - | - | |||||||||||||||||
Fair value, December 31 | $ | 6,701 | $ | - | $ | 4,681 | $ | - | |||||||||||||
Total realized losses included in income related to financial assets and liabilities still on the consolidated balance sheet at December 31 | $ | (344 | ) | $ | - | $ | (102 | ) | $ | - | |||||||||||
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, 2013 and 2012. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as non-interest bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. | |||||||||||||||||||||
(in thousands) | Carrying/ | Estimated | Quoted market prices in an active market | Models with significant observable market parameters | Models with significant unobservable market | ||||||||||||||||
31-Dec-13 | Notional | Fair Value (1) | (Level 1) | (Level 2) | parameters | ||||||||||||||||
Amount | (Level 3) | ||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Securities held-to-maturity | $ | 39,796 | $ | 38,817 | $ | - | $ | 38,817 | $ | - | |||||||||||
Loans, net | 4,076,524 | 4,021,675 | - | - | 4,021,675 | ||||||||||||||||
Mortgage loans held-for-sale | 12,850 | 12,999 | - | 12,999 | - | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits and securities sold under agreements to repurchase | 4,603,938 | 4,378,805 | - | - | 4,378,805 | ||||||||||||||||
Federal Home Loan Bank advances | 90,637 | 90,652 | - | - | 90,652 | ||||||||||||||||
Subordinated debt and other borrowings | 98,658 | 73,083 | - | - | 73,083 | ||||||||||||||||
Off-balance sheet instruments: | |||||||||||||||||||||
Commitments to extend credit (2) | 1,206,528 | 1,040 | - | - | 1,040 | ||||||||||||||||
Standby letters of credit (3) | 69,231 | 331 | - | - | 331 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Securities held-to-maturity | $ | 575 | $ | 583 | $ | - | $ | 583 | $ | - | |||||||||||
Loans, net | 3,642,745 | 3,358,435 | - | - | 3,358,435 | ||||||||||||||||
Mortgage loans held for sale | 41,195 | 42,425 | - | 42,425 | - | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits and securities sold under agreements to repurchase | 4,129,855 | 4,084,314 | - | - | 4,084,314 | ||||||||||||||||
Federal Home Loan Bank advances | 75,850 | 76,350 | - | - | 76,350 | ||||||||||||||||
Subordinated debt and other borrowings | 106,158 | 83,862 | - | - | 83,862 | ||||||||||||||||
Off-balance sheet instruments: | |||||||||||||||||||||
Commitments to extend credit (2) | 1,030,723 | 1,594 | - | - | 1,594 | ||||||||||||||||
Standby letters of credit (3) | 74,679 | 304 | - | - | 304 | ||||||||||||||||
-1 | Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. | ||||||||||||||||||||
-2 | At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at December 31, 2013 and 2012, Pinnacle Financial included in other liabilities $1.0 million and $1.6 million, respectively, representing the inherent risks associated with these off-balance sheet commitments. | ||||||||||||||||||||
-3 | At December 31, 2013 and 2012, the fair value of Pinnacle Financial's standby letters of credit was $331,000 and $304,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit, which were priced at market when issued, and is included in the consolidated balance sheet of Pinnacle Financial and is believed to approximate fair value. This fair value will decrease over time as the existing standby letters of credit approach their expiration dates. |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Variable Interest Entities [Abstract] | ' | |||||||||||||||||
Summary of Variable Interest Entities | ' | |||||||||||||||||
The following table summarizes VIE's that are not consolidated by Pinnacle Financial as of December 31, 2013 (in thousands): | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
Type | Maximum | Liability | Maximum | Liability | Classification | |||||||||||||
Loss Exposure | Recognized | Loss Exposure | Recognized | |||||||||||||||
Low Income Housing Partnerships | $ | 7,945 | $ | - | $ | 6,096 | $ | - | Other Assets | |||||||||
Trust Preferred Issuances | N/A | 82,476 | N/A | 82,476 | Subordinated Debt | |||||||||||||
Commercial Troubled Debt Restructurings | 15,273 | - | 20,951 | - | Loans | |||||||||||||
Managed Discretionary Trusts | N/A | N/A | N/A | N/A | N/A |
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Regulatory Matters [Abstract] | ' | ||||||||||||||||||||||||
Summary of Regulatory Capital Requirement | ' | ||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require Pinnacle Financial and Pinnacle Bank to maintain minimum amounts and ratios of Total and Tier I capital to risk-weighted assets and for Pinnacle Bank of Tier I capital to average assets. Management believes, as of December 31, 2013, 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 minimum Total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the following table and not be subject to a written agreement, order or directive to maintain a higher capital level. Pinnacle Financial's and Pinnacle Bank's actual capital amounts and ratios are presented in the following table (in thousands): | |||||||||||||||||||||||||
Actual | Minimum Capital | Minimum | |||||||||||||||||||||||
Requirement | To Be Well-Capitalized | ||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||
Total capital to risk weighted assets: | |||||||||||||||||||||||||
Pinnacle Financial | $ | 621,683 | 13 | % | $ | 382,190 | 8 | % | $ | 478,688 | 10 | % | |||||||||||||
Pinnacle Bank | $ | 599,028 | 12.6 | % | $ | 381,439 | 8 | % | $ | 477,761 | 10 | % | |||||||||||||
Tier I capital to risk weighted assets: | |||||||||||||||||||||||||
Pinnacle Financial | $ | 561,847 | 11.8 | % | $ | 191,095 | 4 | % | $ | 287,213 | 6 | % | |||||||||||||
Pinnacle Bank | $ | 539,309 | 11.3 | % | $ | 190,720 | 4 | % | $ | 286,657 | 6 | % | |||||||||||||
Tier I capital to average assets (*): | |||||||||||||||||||||||||
Pinnacle Financial | $ | 561,847 | 10.9 | % | $ | 205,695 | 4 | % | N/ | A | N/ | A | |||||||||||||
Pinnacle Bank | $ | 539,309 | 10.5 | % | $ | 204,977 | 4 | % | $ | 256,221 | 5 | % | |||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
Total capital to risk weighted assets: | |||||||||||||||||||||||||
Pinnacle Financial | $ | 552,021 | 13 | % | $ | 339,151 | 8 | % | $ | 425,748 | 10 | % | |||||||||||||
Pinnacle Bank | $ | 545,615 | 12.9 | % | $ | 338,548 | 8 | % | $ | 425,005 | 10 | % | |||||||||||||
Tier I capital to risk weighted assets: | |||||||||||||||||||||||||
Pinnacle Financial | $ | 498,802 | 11.8 | % | $ | 169,575 | 4 | % | $ | 255,449 | 6 | % | |||||||||||||
Pinnacle Bank | $ | 492,489 | 11.6 | % | $ | 169,274 | 4 | % | $ | 255,003 | 6 | % | |||||||||||||
Tier I capital to average assets (*): | |||||||||||||||||||||||||
Pinnacle Financial | $ | 498,802 | 10.6 | % | $ | 188,695 | 4 | % | N/ | A | N/ | A | |||||||||||||
Pinnacle Bank | $ | 492,489 | 10.5 | % | $ | 187,981 | 4 | % | $ | 234,976 | 5 | % | |||||||||||||
(*) Average assets for the above calculations were based on the most recent quarter. |
Parent_Company_Only_Financial_1
Parent Company Only Financial Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Parent Company Only Financial Information [Abstract] | ' | ||||||||||||
CONDENSED BALANCE SHEETS | ' | ||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||
2013 | 2012 | ||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 21,095,990 | $ | 13,657,278 | |||||||||
Investments in consolidated subsidiaries | 788,522,316 | 758,512,213 | |||||||||||
Investment in unconsolidated subsidiaries: | |||||||||||||
PNFP Statutory Trust I | 310,000 | 310,000 | |||||||||||
PNFP Statutory Trust II | 619,000 | 619,000 | |||||||||||
PNFP Statutory Trust III | 619,000 | 619,000 | |||||||||||
PNFP Statutory Trust IV | 928,000 | 928,000 | |||||||||||
Other investments | 4,146,126 | 3,214,358 | |||||||||||
Current income tax receivable | 553,401 | 472,869 | |||||||||||
Other assets | 5,638,884 | 6,954,411 | |||||||||||
$ | 822,432,717 | $ | 785,287,129 | ||||||||||
Liabilities and stockholders' equity: | |||||||||||||
Subordinated debt and other borrowings | 98,658,292 | 106,158,292 | |||||||||||
Other liabilities | 66,764 | 57,478 | |||||||||||
Stockholders' equity | 723,707,661 | 679,071,359 | |||||||||||
$ | 822,432,717 | $ | 785,287,129 | ||||||||||
CONDENSED STATEMENTS OF OPERATIONS | ' | ||||||||||||
CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues | $ | 266,472 | $ | 157,443 | $ | 1,228,999 | |||||||
Expenses: | |||||||||||||
Interest expense | 2,729,843 | 2,689,197 | 2,082,836 | ||||||||||
Stock-based compensation expense | 4,082,132 | 3,664,494 | 4,435,739 | ||||||||||
Other expense | 770,252 | 778,947 | 669,560 | ||||||||||
Loss before income taxes and equity in undistributed income (loss) of subsidiaries | (7,315,755 | ) | (6,975,195 | ) | (5,959,136 | ) | |||||||
Income tax benefit | (2,869,605 | ) | (2,736,020 | ) | (7,641,435 | ) | |||||||
(Loss) income before equity in undistributed income of subsidiaries and accretion on preferred stock discount | (4,446,150 | ) | (4,239,175 | ) | 1,682,299 | ||||||||
Equity in undistributed income of subsidiaries | 62,172,351 | 46,123,056 | 42,055,068 | ||||||||||
Net income | 57,726,201 | 41,883,881 | 43,737,367 | ||||||||||
Preferred stock dividends | - | 1,660,868 | 4,606,493 | ||||||||||
Accretion on preferred stock discount | - | 2,153,172 | 2,058,146 | ||||||||||
Net income available to common stockholders | $ | 57,726,201 | $ | 38,069,841 | $ | 37,072,728 | |||||||
CONDENSED STATEMENTS OF CASH FLOWS | ' | ||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Operating activities: | |||||||||||||
Net income | $ | 57,726,201 | $ | 41,883,881 | $ | 43,737,367 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||
Stock-based compensation expense | 4,082,132 | 3,664,494 | 4,435,739 | ||||||||||
Loss (gain) on other investments | 22,484 | 138,020 | (313,562 | ) | |||||||||
Increase (decrease) in income tax payable, net | 80,532 | 169,016 | (5,351,564 | ) | |||||||||
Decrease (increase) in other assets | 1,608,121 | (912,116 | ) | 124,239 | |||||||||
Increase (decrease) in other liabilities | 9,286 | (8,176 | ) | (1,040 | ) | ||||||||
Excess tax benefit from stock compensation | (389,415 | ) | (36,071 | ) | (13,819 | ) | |||||||
Deferred tax expense | (453,661 | ) | (75,427 | ) | (636,040 | ) | |||||||
Equity in undistributed income of subsidiaries | (62,172,351 | ) | (46,123,056 | ) | (42,055,068 | ) | |||||||
Net cash provided by (used in) operating activities | 513,329 | (1,299,435 | ) | (73,748 | ) | ||||||||
Investing activities: | |||||||||||||
Investment in consolidated subsidiaries: | |||||||||||||
Banking subsidiaries | 14,910,000 | 27,210,000 | - | ||||||||||
Other subsidiaries | - | - | - | ||||||||||
Investments in other entities | (954,249 | ) | 47,804 | (393,304 | ) | ||||||||
Net cash provided by (used in) investing activities | 13,955,751 | 27,257,804 | (393,304 | ) | |||||||||
Financing activities: | |||||||||||||
Net (decrease) increase in subordinated debt and other borrowings | (7,500,000 | ) | 23,682,291 | - | |||||||||
Repurchase of common stock warrants | - | (755,000 | ) | - | |||||||||
Exercise of common stock options | 2,894,908 | 1,616,643 | 1,447,362 | ||||||||||
Preferred dividends paid | - | (2,127,604 | ) | (4,891,840 | ) | ||||||||
Common dividends paid | (2,814,691 | ) | - | - | |||||||||
Excess tax benefit from stock compensation arrangements | 389,415 | 36,071 | 13,819 | ||||||||||
Repurchase of preferred shares outstanding | - | (71,250,000 | ) | (23,750,000 | ) | ||||||||
Net cash used in financing activities | (7,030,368 | ) | (48,797,599 | ) | (27,180,659 | ) | |||||||
Net increase (decrease) in cash | 7,438,712 | (22,839,230 | ) | (27,647,711 | ) | ||||||||
Cash and cash equivalents, beginning of year | 13,657,278 | 36,496,508 | 64,144,219 | ||||||||||
Cash and cash equivalents, end of year | $ | 21,095,990 | $ | 13,657,278 | $ | 36,496,508 |
Quarterly_Financial_Results_un1
Quarterly Financial Results (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Results (unaudited) [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, 2013 follows: | |||||||||||||||||
(in thousands, except per share data) | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
2013 | |||||||||||||||||
Interest income | $ | 47,156 | $ | 47,544 | $ | 48,177 | $ | 48,405 | |||||||||
Net interest income | 42,758 | 43,599 | 44,573 | 44,969 | |||||||||||||
Provision for loan losses | 2,172 | 2,774 | 685 | 2,225 | |||||||||||||
Net income before taxes | 20,048 | 21,289 | 21,952 | 22,597 | |||||||||||||
Net income | 13,448 | 14,311 | 14,647 | 15,321 | |||||||||||||
Net income available to common stockholders | 13,448 | 14,311 | 14,647 | 15,321 | |||||||||||||
Basic net income per share available to common stockholders | $ | 0.4 | $ | 0.42 | $ | 0.43 | $ | 0.45 | |||||||||
Diluted net income per share available to common stockholders | $ | 0.39 | $ | 0.42 | $ | 0.42 | $ | 0.44 | |||||||||
2012 | |||||||||||||||||
Interest income | $ | 45,824 | $ | 45,953 | $ | 46,441 | $ | 47,203 | |||||||||
Net interest income | 39,504 | 40,185 | 40,932 | 42,243 | |||||||||||||
Provision for loan losses | 1,034 | 634 | 1,413 | 2,488 | |||||||||||||
Net income before taxes | 12,599 | 15,545 | 16,371 | 18,012 | |||||||||||||
Net income | 8,365 | 10,440 | 11,349 | 11,730 | |||||||||||||
Net income available to common stockholders | 7,206 | 7,785 | 11,349 | 11,730 | |||||||||||||
Basic net income per share available to common stockholders | $ | 0.21 | $ | 0.23 | $ | 0.33 | $ | 0.35 | |||||||||
Diluted net income per share available to common stockholders | $ | 0.21 | $ | 0.23 | $ | 0.33 | $ | 0.34 | |||||||||
2011 | |||||||||||||||||
Interest income | $ | 47,224 | $ | 47,789 | $ | 46,888 | $ | 46,446 | |||||||||
Net interest income | 29,882 | 31,208 | 34,723 | 33,854 | |||||||||||||
Provision for loan losses | 6,139 | 6,587 | 3,632 | 5,439 | |||||||||||||
Net income before taxes | 3,505 | 6,660 | 9,128 | 9,207 | |||||||||||||
Net income | 3,505 | 6,372 | 26,101 | 7,760 | |||||||||||||
Net income available to common stockholders | 2,011 | 4,844 | 24,537 | 5,681 | |||||||||||||
Basic net income per share available to common stockholders | $ | 0.06 | $ | 0.14 | $ | 0.74 | $ | 0.17 | |||||||||
Diluted net income per share available to common stockholders | $ | 0.06 | $ | 0.14 | $ | 0.72 | $ | 0.17 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Trust | Segment | |||||||||||||||
Loans | Trust | |||||||||||||||
Loans | ||||||||||||||||
Recently Adopted Accounting Pronouncements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net gain on sale of investment securities reclassified out of comprehensive income into net income, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $891,177 | ($1,306,923) | ($583,856) | ' |
Cash Equivalents and Cash Flows [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents maturity period (in days) | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' |
Cash Payments [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,020,132 | 23,506,632 | 39,991,746 | ' |
Income taxes paid (refunded) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,150,000 | 10,249,106 | 3,988,414 | ' |
Noncash Transactions: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans charged-off to the allowance for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,252,736 | 19,657,061 | 34,849,910 | ' |
Loans foreclosed upon and transferred to other real estate owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,630,251 | 9,052,792 | 34,580,351 | ' |
Available For Sale Securities Transfers To Held To Maturity Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,959,647 | 0 | 0 | ' |
Loans [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of loan segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' |
Net deferred loan fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 993,000 | 1,000,000 | ' | ' |
Percentage of loan portfolio assigned specific risk rating (in hundredths) | 74.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74.00% | ' | ' | ' |
Number of loans classified as nonaccrual loans | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' |
ASC 450-20, Loss Contingencies [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss allocation rate from migration analysis (in hundredths) | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' |
Loss allocation rates for industry loss allocation (in hundredths) | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' |
Number of prior quarters used for historical migration analysis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '45 months | ' | ' | '24 months |
Allowance for loan loss accounted for by environmental factors (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19.90% | 18.60% | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal balance of loans subject to individual determination of impairment | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' |
Impaired loans with valuation allowance based on allocated rate calculated for similar loan | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' |
Amount of collateral dependent loans reviewed to determine charged off amount | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' |
Principal balance of impaired loans | 18,183,000 | ' | ' | ' | 22,823,000 | ' | ' | ' | 47,855,000 | ' | ' | ' | 18,183,000 | 22,823,000 | 47,855,000 | ' |
Premises and Equipment and Leaseholds [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred liability associated with escalating rentals | 2,234,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,234,000 | ' | ' | ' |
Other Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Computer software related assets, net | 72,649,574 | ' | ' | ' | 75,804,895 | ' | ' | ' | ' | ' | ' | ' | 72,649,574 | 75,804,895 | ' | ' |
Cash surrender value of life insurance | 90,271,000 | ' | ' | ' | 49,802,000 | ' | ' | ' | ' | ' | ' | ' | 90,271,000 | 49,802,000 | ' | ' |
Noninterest income related to cash surrender value of bank owned life insurance policies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,116,000 | 919,000 | 1,159,000 | ' |
Pre-paid deposit insurance is included in other assets | 4,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal Reserve Bank and Federal Home Loan Bank (FHLB) stock | 16,103,000 | ' | ' | ' | 14,176,000 | ' | ' | ' | ' | ' | ' | ' | 16,103,000 | 14,176,000 | ' | ' |
Investments in other entities at fair value | 6,701,000 | ' | ' | ' | 4,214,000 | ' | ' | ' | ' | ' | ' | ' | 6,701,000 | 4,214,000 | ' | ' |
Gain (loss) due to change in fair value of investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 122,000 | -70,000 | ' | ' |
Number of trusts investment | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' |
Value of investments with trust companies | 33,226,195 | ' | ' | ' | 26,962,890 | ' | ' | ' | ' | ' | ' | ' | 33,226,195 | 26,962,890 | ' | ' |
Investments as per community reinvestment act | 7,945,000 | ' | ' | ' | 6,096,000 | ' | ' | ' | ' | ' | ' | ' | 7,945,000 | 6,096,000 | ' | ' |
Other Real Estate Owned [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other real estate owned | 20,913,000 | ' | ' | ' | 26,793,000 | ' | ' | ' | ' | ' | ' | ' | 20,913,000 | 26,793,000 | ' | ' |
Valuation allowance related to other real estate owned | 5,687,000 | ' | ' | ' | 8,213,000 | ' | ' | ' | ' | ' | ' | ' | 5,687,000 | 8,213,000 | ' | ' |
Foreclosed real estate expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,113,000 | 11,544,000 | 17,432,000 | ' |
Realized losses on foreclosed real estate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,014,000 | 9,470,000 | 12,806,000 | ' |
Investment Services and Trust Fees [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Brokerage assets under management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,560,000,000 | 1,240,000,000 | ' | ' |
Trust assets under management | 1,470,000,000 | ' | ' | ' | 819,000,000 | ' | ' | ' | ' | ' | ' | ' | 1,470,000,000 | 819,000,000 | ' | ' |
Advertising [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 265,000 | 447,000 | 339,000 | ' |
Income Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Uncertain tax positions accrued interest | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' |
Uncertain tax positions accrued penalties | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, stock appreciation rights and warrants included in earning per share calculation (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 308,000 | 588,000 | ' | ' |
Antidilutive securities excluded from computation of earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 694,500 | 730,300 | ' | ' |
Basic earnings per share calculation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Numerator - Net income (loss) available to common stockholders | 15,321,000 | 14,647,000 | 14,311,000 | 13,448,000 | 11,730,000 | 11,349,000 | 7,785,000 | 7,206,000 | 5,681,000 | 24,537,000 | 4,844,000 | 2,011,000 | 57,726,201 | 38,069,841 | 37,072,728 | ' |
Denominator - Weighted average common shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,200,770 | 33,899,667 | 33,420,015 | ' |
Basic net income (loss) per share available to common stockholders (in dollars per share) | $0.45 | $0.43 | $0.42 | $0.40 | $0.35 | $0.33 | $0.23 | $0.21 | $0.17 | $0.74 | $0.14 | $0.06 | $1.69 | $1.12 | $1.11 | ' |
Diluted earnings per share calculation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Numerator - Net income (loss) available to common stockholders | 15,321,000 | 14,647,000 | 14,311,000 | 13,448,000 | 11,730,000 | 11,349,000 | 7,785,000 | 7,206,000 | 5,681,000 | 24,537,000 | 4,844,000 | 2,011,000 | 57,726,201 | 38,069,841 | 37,072,728 | ' |
Denominator - Weighted average common shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,200,770 | 33,899,667 | 33,420,015 | ' |
Dilutive shares contingently issuable (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 308,491 | 588,141 | 640,213 | ' |
Weighted average diluted common shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,509,261 | 34,487,808 | 34,060,228 | ' |
Diluted net income (loss) per share available to common stockholders (in dollars per share) | $0.44 | $0.42 | $0.42 | $0.39 | $0.34 | $0.33 | $0.23 | $0.21 | $0.17 | $0.72 | $0.14 | $0.06 | $1.67 | $1.10 | $1.09 | ' |
Stock Options [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options outstanding (in shares) | 997,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 997,000 | ' | ' | ' |
Stock Appreciation Rights [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options outstanding (in shares) | 5,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,500 | ' | ' | ' |
Warrants [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 | 0 |
Trust [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of investments with trust companies | 2,476,000 | ' | ' | ' | 2,476,000 | ' | ' | ' | ' | ' | ' | ' | 2,476,000 | 2,476,000 | ' | ' |
Minimum [Member] | Internal Revenue Service (IRS) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax year open to audit under the statute of limitation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2010 | ' | ' | ' |
Minimum [Member] | State of Tennessee [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax year open to audit under the statute of limitation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2010 | ' | ' | ' |
Maximum [Member] | Internal Revenue Service (IRS) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax year open to audit under the statute of limitation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2013 | ' | ' | ' |
Maximum [Member] | State of Tennessee [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax year open to audit under the statute of limitation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2013 | ' | ' | ' |
Premises and Equipment [Member] | Minimum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premises and Equipment and Leaseholds [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premises and equipment, useful life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Premises and Equipment [Member] | Maximum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premises and Equipment and Leaseholds [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premises and equipment, useful life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 years | ' | ' | ' |
Software [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Computer software related assets, net | 2,748,000 | ' | ' | ' | 1,336,000 | ' | ' | ' | ' | ' | ' | ' | 2,748,000 | 1,336,000 | ' | ' |
Amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 937,000 | 901,000 | 818,000 | ' |
Software [Member] | Minimum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Computer software related assets, useful life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Software [Member] | Maximum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Computer software related assets, useful life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' |
Small Impaired Loans [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal balance of impaired loans | $5,800,000 | ' | ' | ' | $5,000,000 | ' | ' | ' | ' | ' | ' | ' | $5,800,000 | $5,000,000 | ' | ' |
Percentage of small impaired loans to total impaired loans (in hundredths) | 15.20% | ' | ' | ' | 9.90% | ' | ' | ' | ' | ' | ' | ' | 15.20% | 9.90% | ' | ' |
Acquisitions_and_Intangibles_D
Acquisitions and Intangibles (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization of acquired intangible assets | $1,262,524 | $2,738,994 | $2,862,837 |
Mid-America Bancshares, Inc [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Number of bank owned by holding company | 2 | ' | ' |
Period of amortization for remaining adjustment (in years) | '4 years | ' | ' |
Mid-America Bancshares, Inc [Member] | Core Deposits [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Acquired finite-lived intangible asset | 9,400,000 | ' | ' |
Amortization period of intangible assets (in years) | '10 years | ' | ' |
Amortization of acquired intangible assets | 896,000 | 987,000 | 1,026,000 |
Mid-America Bancshares, Inc [Member] | Core Deposits [Member] | Minimum [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 700,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 700,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 700,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 700,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 700,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 700,000 | ' | ' |
Mid-America Bancshares, Inc [Member] | Core Deposits [Member] | Maximum [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 860,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 860,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 860,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 860,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 860,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 860,000 | ' | ' |
Cavalry Bancorp, Inc [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Number of bank owned by holding company | 1 | ' | ' |
Cavalry Bancorp, Inc [Member] | Core Deposits [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Acquired finite-lived intangible asset | 13,200,000 | ' | ' |
Amortization period of intangible assets (in years) | '7 years | ' | ' |
Amortization of acquired intangible assets | 273,000 | 1,600,000 | 1,700,000 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 0 | ' | ' |
Beach & Gentry Insurance LLC [Member] | Customer Lists [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Acquired finite-lived intangible asset | 1,270,000 | ' | ' |
Amortization period of intangible assets (in years) | '20 years | ' | ' |
Amortization of acquired intangible assets | $97,000 | $103,000 | $109,000 |
Participation_in_US_Treasury_C1
Participation in US Treasury Capital Purchase Program (CPP) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 | Sep. 30, 2012 | Dec. 31, 2013 | Jun. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2008 | |
Common Stock [Member] | Warrants [Member] | Warrants [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] | |||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock issued (in shares) | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | 95,000 |
Preferred stock issued to U.S. treasury | ' | ' | ' | ' | ' | ' | ' | ' | ' | $95,000,000 |
Preferred stock dividend rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% |
Number of preferred shares redeemed under CPP (in shares) | ' | ' | ' | ' | ' | ' | ' | 71,250 | 23,750 | ' |
Value of preferred shares redeemed under CPP | ' | ' | ' | ' | ' | ' | ' | 71,600,000 | 23,900,000 | ' |
Accrued but unpaid dividends | 346,000 | ' | ' | 142,000 | ' | ' | ' | ' | ' | ' |
Accretion of discount | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants issued to purchase common stock (in shares) | ' | 534,910 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrants (in dollars per share) | ' | $26.64 | ' | ' | ' | ' | ' | ' | ' | ' |
Expiry period of warrants from the date of issuance (in years) | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of common stock in public offering (in shares) | ' | ' | ' | ' | 8,855,000 | ' | ' | ' | ' | ' |
Net proceed from sale of common stock in public offering | ' | ' | ' | ' | 109,000,000 | ' | ' | ' | ' | ' |
Percentage of number of shares reduced issuable upon exercise of warrants (in hundredths) | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' |
Number of shares reduced issuable upon exercise of warrants (in shares) | ' | ' | ' | ' | ' | ' | 267,455 | ' | ' | ' |
Repurchased outstanding warrants held by treasury | ' | ' | ' | ' | ' | $755,000 | ' | ' | ' | ' |
Restricted_Cash_Balances_Detai
Restricted Cash Balances (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Cash Balances [Abstract] | ' | ' |
Reserve balances with federal reserve bank | $108,765,000 | $107,609,000 |
Securities_Details
Securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Securities available-for-sale: [Abstract] | ' | ' |
Amortized Cost | $700,492,000 | $675,927,000 |
Gross Unrealized Gains | 16,306,000 | 31,827,000 |
Gross Unrealized Losses | 23,342,000 | 1,176,000 |
Fair Value | 693,456,314 | 706,577,806 |
Securities pledged as collateral to secure public funds and other deposits or securities sold under agreements to repurchase | 592,000,000 | ' |
Securities held-to-maturity: [Abstract] | ' | ' |
Amortized Cost | 39,796,000 | 575,000 |
Gross Unrealized Gains | 72,000 | 8,000 |
Gross Unrealized Losses | 1,051,000 | 0 |
Fair Value | 38,817,467 | 583,212 |
Available-for-sale, Amortized Cost [Abstract] | ' | ' |
Due in one year or less | 3,480,000 | ' |
Due in one year to five years | 27,583,000 | ' |
Due in five years to ten years | 129,017,000 | ' |
Due after ten years | 111,004,000 | ' |
Mortgage-backed securities | 412,146,000 | ' |
Asset-backed securities | 17,262,000 | ' |
Amortized Cost | 700,492,000 | ' |
Available-for-sale, Fair Value [Abstract] | ' | ' |
Due in one year or less | 3,516,000 | ' |
Due in one year to five years | 28,243,000 | ' |
Due in five years to ten years | 128,285,000 | ' |
Due after ten years | 103,470,000 | ' |
Mortgage-backed securities | 412,936,000 | ' |
Asset-backed securities | 17,006,000 | ' |
Fair Value | 693,456,000 | ' |
Held-to-maturity, Amortized Cost [Abstract] | ' | ' |
Due in one year or less | 318,000 | ' |
Due in one year to five years | 12,097,000 | ' |
Due in five years to ten years | 15,105,000 | ' |
Due after ten years | 12,276,000 | ' |
Mortgage-backed securities | 0 | ' |
Asset-backed securities | 0 | ' |
Amortized Cost | 39,795,649 | 574,863 |
Held-to-maturity, Fair Value [Abstract] | ' | ' |
Due in one year or less | 316,000 | ' |
Due in one year to five years | 12,113,000 | ' |
Due in five years to ten years | 14,640,000 | ' |
Due after ten years | 11,748,000 | ' |
Mortgage-backed securities | 0 | ' |
Asset-backed securities | 0 | ' |
Fair Value | 38,817,467 | 583,212 |
State and Municipal Securities [Member] | ' | ' |
Securities held-to-maturity: [Abstract] | ' | ' |
Amortized Cost | 39,796,000 | ' |
Gross Unrealized Gains | 72,000 | ' |
Gross Unrealized Losses | 1,051,000 | ' |
Fair Value | 38,817,000 | ' |
Held-to-maturity, Fair Value [Abstract] | ' | ' |
Fair Value | 38,817,000 | ' |
US Treasury Securities [Member] | ' | ' |
Securities available-for-sale: [Abstract] | ' | ' |
Amortized Cost | 0 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 0 | 0 |
U.S. Government Agency Securities [Member] | ' | ' |
Securities available-for-sale: [Abstract] | ' | ' |
Amortized Cost | 117,282,000 | 110,817,000 |
Gross Unrealized Gains | 13,000 | 49,000 |
Gross Unrealized Losses | 13,422,000 | 414,000 |
Fair Value | 103,873,000 | 110,452,000 |
Mortgage-backed Securities [Member] | ' | ' |
Securities available-for-sale: [Abstract] | ' | ' |
Amortized Cost | 411,967,000 | 360,504,000 |
Gross Unrealized Gains | 9,771,000 | 15,770,000 |
Gross Unrealized Losses | 8,802,000 | 623,000 |
Fair Value | 412,936,000 | 375,651,000 |
State and Municipal Securities [Member] | ' | ' |
Securities available-for-sale: [Abstract] | ' | ' |
Amortized Cost | 143,763,000 | 177,364,000 |
Gross Unrealized Gains | 5,504,000 | 14,489,000 |
Gross Unrealized Losses | 856,000 | 126,000 |
Fair Value | 148,411,000 | 191,727,000 |
Asset-backed Securities [Member] | ' | ' |
Securities available-for-sale: [Abstract] | ' | ' |
Amortized Cost | 17,262,000 | 17,361,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 255,000 | 9,000 |
Fair Value | 17,007,000 | 17,352,000 |
Corporate Notes [Member] | ' | ' |
Securities available-for-sale: [Abstract] | ' | ' |
Amortized Cost | 10,218,000 | 9,881,000 |
Gross Unrealized Gains | 1,018,000 | 1,519,000 |
Gross Unrealized Losses | 7,000 | 4,000 |
Fair Value | $11,229,000 | $11,396,000 |
Securities_Availableforsale_De
Securities, Available-for-sale (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||
Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Bond | Security | Security | US Treasury Securities [Member] | US Treasury Securities [Member] | U.S. Government Agency Securities [Member] | U.S. Government Agency Securities [Member] | Mortgage-backed Securities [Member] | Mortgage-backed Securities [Member] | Mortgage-backed Securities [Member] | State and Municipal Securities [Member] | State and Municipal Securities [Member] | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Corporate Notes [Member] | Corporate Notes [Member] | |||||
Security | Security | Security | ||||||||||||||||||||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments with an Unrealized Loss of less than 12 months, Fair Value | $142,581,000 | ' | ' | $213,232,000 | $142,581,000 | ' | ' | $0 | $0 | $8,742,000 | $78,899,000 | $40,988,000 | ' | $157,262,000 | $46,282,000 | $5,179,000 | ' | ' | $0 | $17,353,000 | $946,000 | $162,000 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 1,176,000 | ' | ' | 4,242,000 | 1,176,000 | ' | ' | 0 | 0 | 22,000 | 414,000 | 623,000 | ' | 3,913,000 | 301,000 | 126,000 | ' | ' | 0 | 9,000 | 6,000 | 4,000 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 0 | ' | ' | 156,735,000 | 0 | ' | ' | 0 | 0 | 92,869,000 | 0 | 0 | ' | 42,903,000 | 3,798,000 | 0 | ' | ' | 17,006,000 | 0 | 159,000 | 0 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 0 | ' | ' | 19,100,000 | 0 | ' | ' | 0 | 0 | 13,400,000 | 0 | 0 | ' | 4,889,000 | 555,000 | 0 | ' | ' | 255,000 | 0 | 1,000 | 0 |
Total Investments with an Unrealized Loss, Fair Value | 142,581,000 | ' | ' | 369,967,000 | 142,581,000 | ' | ' | 0 | 0 | 101,611,000 | 78,899,000 | 40,988,000 | ' | 200,165,000 | 50,080,000 | 5,179,000 | ' | ' | 17,006,000 | 17,353,000 | 1,105,000 | 162,000 |
Total Investments with an Unrealized Loss, Unrealized Losses | 1,176,000 | ' | ' | 23,342,000 | 1,176,000 | ' | ' | 0 | 0 | 13,422,000 | 414,000 | 623,000 | ' | 8,802,000 | 856,000 | 126,000 | ' | ' | 255,000 | 9,000 | 7,000 | 4,000 |
Available-for-sale securities, gross realized gain (loss) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net | ' | ' | ' | -1,466,475 | 2,150,605 | 960,763 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other-than-temporary impairment | ' | 57,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized gain on the sale of securities, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,000 | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of securities deemed other-than-temporarily impaired | ' | 1 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 4 | ' | ' | ' | ' | 4 | ' | ' | ' | ' |
Number of bonds sold based on their relative underperformance compared to expectations | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans_and_Allowance_for_Loan_L2
Loans and Allowance for Loan Losses (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Loans and Allowance for Loan Losses [Abstract] | ' | ' | ' | ||
Percentage of loan portfolio as commercial loan (in hundredths) | 74.00% | ' | ' | ||
Risk rated loans | $500,000 | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 4,144,493,486 | 3,712,162,430 | ' | ||
Potential problem loans not included in nonperforming assets | 65,000,000 | 105,400,000 | ' | ||
Principal balance of nonaccrual loans | 18,183,000 | [1] | 22,823,000 | [1] | ' |
Average balance of impaired loans | 21,500,000 | 38,400,000 | ' | ||
Estimated increase in interest income if nonaccrual loans had been on accrual status | 375,000 | 1,400,000 | 5,000,000 | ||
Commercial and Industrial [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 1,605,547,000 | 1,446,578,000 | ' | ||
Principal balance of nonaccrual loans | 2,565,000 | [1] | 3,038,000 | [1] | ' |
Construction and Land Development [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 316,191,000 | 313,552,000 | ' | ||
Principal balance of nonaccrual loans | 1,070,000 | [1] | 4,509,000 | [1] | ' |
Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 695,616,000 | 679,926,000 | ' | ||
Principal balance of nonaccrual loans | 5,289,000 | [1] | 5,906,000 | [1] | ' |
Commercial Real Estate Other [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Principal balance of nonaccrual loans | 1,267,000 | [1] | 1,200,000 | [1] | ' |
Commercial Real Estate Owner Occupied [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Principal balance of nonaccrual loans | 7,750,000 | [1] | 8,091,000 | [1] | ' |
Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 1,383,435,000 | 1,178,196,000 | ' | ||
Consumer and Other [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 143,704,000 | 93,910,000 | ' | ||
Principal balance of nonaccrual loans | 242,000 | [1] | 79,000 | [1] | ' |
Accruing Loans [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 4,106,664,000 | 3,661,887,000 | ' | ||
Accruing Loans [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 1,601,162,000 | 1,442,853,000 | ' | ||
Accruing Loans [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 315,008,000 | 308,972,000 | ' | ||
Accruing Loans [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 686,343,000 | 667,709,000 | ' | ||
Accruing Loans [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 1,360,965,000 | 1,148,641,000 | ' | ||
Accruing Loans [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 143,186,000 | 93,712,000 | ' | ||
Accruing Loans [Member] | Pass [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 3,979,630,000 | 3,486,996,000 | ' | ||
Accruing Loans [Member] | Pass [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 1,557,923,000 | 1,390,207,000 | ' | ||
Accruing Loans [Member] | Pass [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 275,876,000 | 259,878,000 | ' | ||
Accruing Loans [Member] | Pass [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 670,412,000 | 649,571,000 | ' | ||
Accruing Loans [Member] | Pass [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 1,332,387,000 | 1,093,628,000 | ' | ||
Accruing Loans [Member] | Pass [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 143,032,000 | 93,712,000 | ' | ||
Accruing Loans [Member] | Special Mention [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 62,006,000 | 69,517,000 | ' | ||
Accruing Loans [Member] | Special Mention [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 20,065,000 | 23,133,000 | ' | ||
Accruing Loans [Member] | Special Mention [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 31,835,000 | 29,472,000 | ' | ||
Accruing Loans [Member] | Special Mention [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 1,824,000 | 4,242,000 | ' | ||
Accruing Loans [Member] | Special Mention [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 8,282,000 | 12,670,000 | ' | ||
Accruing Loans [Member] | Special Mention [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 0 | 0 | ' | ||
Accruing Loans [Member] | Substandard [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 65,028,000 | [2] | 105,374,000 | [2] | ' |
Accruing Loans [Member] | Substandard [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 23,174,000 | [2] | 29,513,000 | [2] | ' |
Accruing Loans [Member] | Substandard [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 7,297,000 | [2] | 19,622,000 | [2] | ' |
Accruing Loans [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 14,107,000 | [2] | 13,896,000 | [2] | ' |
Accruing Loans [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 20,296,000 | [2] | 42,343,000 | [2] | ' |
Accruing Loans [Member] | Substandard [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 154,000 | [2] | 0 | [2] | ' |
Impaired Loans [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 37,829,000 | 50,275,000 | ' | ||
Impaired Loans [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 4,385,000 | 3,725,000 | ' | ||
Impaired Loans [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 1,183,000 | 4,580,000 | ' | ||
Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 9,273,000 | 12,217,000 | ' | ||
Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 22,470,000 | 29,555,000 | ' | ||
Impaired Loans [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 518,000 | 198,000 | ' | ||
Nonaccrual Loans [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 18,183,000 | 22,823,000 | ' | ||
Nonaccrual Loans [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 2,565,000 | 3,038,000 | ' | ||
Nonaccrual Loans [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 1,070,000 | 4,509,000 | ' | ||
Nonaccrual Loans [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 5,289,000 | 5,906,000 | ' | ||
Nonaccrual Loans [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 9,017,000 | 9,291,000 | ' | ||
Nonaccrual Loans [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 242,000 | 79,000 | ' | ||
Nonaccrual Loans [Member] | Substandard [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 18,183,000 | 22,790,000 | ' | ||
Nonaccrual Loans [Member] | Substandard [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 2,565,000 | 3,035,000 | ' | ||
Nonaccrual Loans [Member] | Substandard [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 1,070,000 | 4,509,000 | ' | ||
Nonaccrual Loans [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 5,289,000 | 5,877,000 | ' | ||
Nonaccrual Loans [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 9,017,000 | 9,290,000 | ' | ||
Nonaccrual Loans [Member] | Substandard [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 242,000 | 79,000 | ' | ||
Nonaccrual Loans [Member] | Doubtful [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 0 | 33,000 | ' | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 0 | 3,000 | ' | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 0 | 0 | ' | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 0 | 29,000 | ' | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 0 | 1,000 | ' | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 0 | 0 | ' | ||
Troubled Debt Restructurings [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 19,646,000 | [3] | 27,452,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 1,820,000 | [3] | 687,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 113,000 | [3] | 71,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 3,984,000 | [3] | 6,311,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 13,453,000 | [3] | 20,264,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 276,000 | [3] | 119,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Pass [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 4,939,000 | [3] | 9,020,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Pass [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 320,000 | [3] | 502,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Pass [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 113,000 | [3] | 71,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Pass [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 1,666,000 | [3] | 3,623,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Pass [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 2,564,000 | [3] | 4,705,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Pass [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 276,000 | [3] | 119,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Special Mention [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 0 | [3] | 0 | [3] | ' |
Troubled Debt Restructurings [Member] | Special Mention [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 0 | [3] | 0 | [3] | ' |
Troubled Debt Restructurings [Member] | Special Mention [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 0 | [3] | 0 | [3] | ' |
Troubled Debt Restructurings [Member] | Special Mention [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 0 | [3] | 0 | [3] | ' |
Troubled Debt Restructurings [Member] | Special Mention [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 0 | [3] | 0 | [3] | ' |
Troubled Debt Restructurings [Member] | Special Mention [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 0 | [3] | 0 | [3] | ' |
Troubled Debt Restructurings [Member] | Substandard [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 14,707,000 | [3] | 18,432,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Substandard [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 1,500,000 | [3] | 185,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Substandard [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 0 | [3] | 0 | [3] | ' |
Troubled Debt Restructurings [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 2,318,000 | [3] | 2,688,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | 10,889,000 | [3] | 15,559,000 | [3] | ' |
Troubled Debt Restructurings [Member] | Substandard [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ||
Loans | $0 | [3] | $0 | [3] | ' |
[1] | Approximately $10.9 million and $9.4 million of nonaccrual loans as of December 31, 2013 and 2012, respectively, are currently performing pursuant to their contractual terms. | ||||
[2] | 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 the impact of substandard nonperforming loans and substandard troubled debt restructurings. Potential problem loans, which are not included in nonperforming assets, amounted to approximately $65.0 million at December 31, 2013, compared to $105.4 million at December 31, 2012. | ||||
[3] | Troubled debt restructurings are presented as an impaired loan; however, they continue to accrue interest at contractual rates. |
Loans_and_Allowance_for_Loan_L3
Loans and Allowance for Loan Losses, Impaired Financing Receivable (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment | $18,183,000 | $22,823,000 | $47,855,000 | |||
Unpaid principal balance | 19,526,000 | 35,057,000 | 58,981,000 | |||
Related allowance | 1,187,000 | [1] | 1,764,000 | [1] | 4,440,000 | [1] |
Average recorded investment | 21,484,000 | 38,413,000 | 60,792,000 | |||
Interest income recognized | 0 | 0 | 42,000 | |||
Interest income from cash payments received | ' | 42,000 | ' | |||
Collateral Dependent Impaired Loans [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment | 11,570,000 | 15,474,000 | 28,546,000 | |||
Unpaid principal balance | 12,136,000 | 21,404,000 | 34,699,000 | |||
Related allowance | 0 | [1] | 0 | [1] | 0 | [1] |
Average recorded investment | 13,605,000 | 21,547,000 | 35,567,000 | |||
Interest income recognized | 0 | 0 | 42,000 | |||
Collateral Dependent Impaired Loans [Member] | Commercial and industrial [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment | 1,828,000 | 1,547,000 | 3,036,000 | |||
Unpaid principal balance | 1,901,000 | 1,761,000 | 3,546,000 | |||
Related allowance | 0 | [1] | 0 | [1] | 0 | [1] |
Average recorded investment | 3,911,000 | 1,896,000 | 3,689,000 | |||
Interest income recognized | 0 | 0 | 0 | |||
Collateral Dependent Impaired Loans [Member] | Construction and Land Development [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment | 545,000 | 1,546,000 | 6,917,000 | |||
Unpaid principal balance | 545,000 | 2,062,000 | 9,093,000 | |||
Related allowance | 0 | [1] | 0 | [1] | 0 | [1] |
Average recorded investment | 938,000 | 2,063,000 | 9,288,000 | |||
Interest income recognized | 0 | 0 | 37,000 | |||
Collateral Dependent Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment | 2,162,000 | 3,641,000 | 9,248,000 | |||
Unpaid principal balance | 2,209,000 | 6,394,000 | 9,961,000 | |||
Related allowance | 0 | [1] | 0 | [1] | 0 | [1] |
Average recorded investment | 2,234,000 | 6,394,000 | 10,140,000 | |||
Interest income recognized | 0 | 0 | 0 | |||
Collateral Dependent Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment | 7,035,000 | 8,740,000 | 9,345,000 | |||
Unpaid principal balance | 7,481,000 | 11,187,000 | 12,099,000 | |||
Related allowance | 0 | [1] | 0 | [1] | 0 | [1] |
Average recorded investment | 6,522,000 | 11,194,000 | 12,450,000 | |||
Interest income recognized | 0 | 0 | 5,000 | |||
Collateral Dependent Impaired Loans [Member] | Consumer and Other [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment | 0 | 0 | 0 | |||
Unpaid principal balance | 0 | 0 | 0 | |||
Related allowance | 0 | [1] | 0 | [1] | 0 | [1] |
Average recorded investment | 0 | 0 | 0 | |||
Interest income recognized | 0 | 0 | 0 | |||
Cash Flow Dependent Impaired Loans [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment | 6,613,000 | 7,349,000 | 19,309,000 | |||
Unpaid principal balance | 7,390,000 | 13,653,000 | 24,282,000 | |||
Related allowance | 1,187,000 | [1] | 1,764,000 | [1] | 4,440,000 | [1] |
Average recorded investment | 7,879,000 | 16,866,000 | 25,225,000 | |||
Interest income recognized | 0 | 0 | 0 | |||
Cash Flow Dependent Impaired Loans [Member] | Commercial and industrial [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment | 737,000 | 1,491,000 | 8,854,000 | |||
Unpaid principal balance | 1,029,000 | 2,459,000 | 11,041,000 | |||
Related allowance | 218,000 | [1] | 814,000 | [1] | 2,767,000 | [1] |
Average recorded investment | 1,216,000 | 2,528,000 | 11,497,000 | |||
Interest income recognized | 0 | 0 | 0 | |||
Cash Flow Dependent Impaired Loans [Member] | Construction and Land Development [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment | 525,000 | 2,963,000 | 6,048,000 | |||
Unpaid principal balance | 609,000 | 4,701,000 | 6,822,000 | |||
Related allowance | 33,000 | [1] | 201,000 | [1] | 1,264,000 | [1] |
Average recorded investment | 568,000 | 5,102,000 | 7,074,000 | |||
Interest income recognized | 0 | 0 | 0 | |||
Cash Flow Dependent Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment | 3,127,000 | 2,265,000 | 3,239,000 | |||
Unpaid principal balance | 3,334,000 | 4,473,000 | 4,902,000 | |||
Related allowance | 722,000 | [1] | 573,000 | [1] | 301,000 | [1] |
Average recorded investment | 3,405,000 | 5,828,000 | 5,005,000 | |||
Interest income recognized | 0 | 0 | 0 | |||
Cash Flow Dependent Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment | 1,982,000 | 551,000 | 617,000 | |||
Unpaid principal balance | 2,166,000 | 1,841,000 | 661,000 | |||
Related allowance | 142,000 | [1] | 154,000 | [1] | 57,000 | [1] |
Average recorded investment | 2,448,000 | 3,228,000 | 792,000 | |||
Interest income recognized | 0 | 0 | 0 | |||
Cash Flow Dependent Impaired Loans [Member] | Consumer and Other [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment | 242,000 | 79,000 | 551,000 | |||
Unpaid principal balance | 252,000 | 179,000 | 856,000 | |||
Related allowance | 72,000 | [1] | 22,000 | [1] | 51,000 | [1] |
Average recorded investment | 242,000 | 180,000 | 857,000 | |||
Interest income recognized | $0 | $0 | $0 | |||
[1] | Collateral dependent loans are typically charged-off to their net realizable value pursuant to requirements of our primary regulators and no specific allowance is carried related to those loans. |
Loans_and_Allowance_for_Loan_L4
Loans and Allowance for Loan Losses, Troubled Debt Restructurings (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Contract | Contract | |
Troubled debt restructuring categorized by loan classification [Abstract] | ' | ' |
Number of contracts | 6 | 9 |
Pre Modification Outstanding Recorded Investment | $2,583,000 | $12,409,000 |
Post Modification Outstanding Recorded Investment net of related allowance | 2,254,000 | 10,771,000 |
Number of Contracts of troubled debt restructurings subsequently defaulted | ' | 8 |
Troubled debt restructurings subsequently defaulted | ' | 476,000 |
Troubled debt restructurings performing as of restructure date | 19,700,000 | 27,500,000 |
Percentage of credit exposure to risk based capital (in hundredths) | 25.00% | ' |
Lessors of Nonresidential Buildings [Member] | ' | ' |
Loan portfolio credit risk exposure [Abstract] | ' | ' |
Financing receivables principal balance | 471,978,000 | ' |
Financing receivables unfunded commitment | 43,262,000 | ' |
Financing receivables exposure | 515,240,000 | 440,237,000 |
Lessors of Residential Buildings [Member] | ' | ' |
Loan portfolio credit risk exposure [Abstract] | ' | ' |
Financing receivables principal balance | 242,029,000 | ' |
Financing receivables unfunded commitment | 28,744,000 | ' |
Financing receivables exposure | 270,773,000 | 215,899,000 |
Land Subdividers [Member] | ' | ' |
Loan portfolio credit risk exposure [Abstract] | ' | ' |
Financing receivables principal balance | 60,415,000 | ' |
Financing receivables unfunded commitment | 10,587,000 | ' |
Financing receivables exposure | 71,002,000 | 108,283,000 |
Commercial and Industrial [Member] | ' | ' |
Troubled debt restructuring categorized by loan classification [Abstract] | ' | ' |
Number of contracts | 2 | 0 |
Pre Modification Outstanding Recorded Investment | 1,750,000 | 0 |
Post Modification Outstanding Recorded Investment net of related allowance | 1,535,000 | 0 |
Construction and Land Development [Member] | ' | ' |
Troubled debt restructuring categorized by loan classification [Abstract] | ' | ' |
Number of contracts | 1 | 0 |
Pre Modification Outstanding Recorded Investment | 56,000 | 0 |
Post Modification Outstanding Recorded Investment net of related allowance | 49,000 | 0 |
Consumer Real Estate - Mortgage [Member] | ' | ' |
Troubled debt restructuring categorized by loan classification [Abstract] | ' | ' |
Number of contracts | 1 | 4 |
Pre Modification Outstanding Recorded Investment | 500,000 | 834,000 |
Post Modification Outstanding Recorded Investment net of related allowance | 427,000 | 718,000 |
Commercial Real Estate - Mortgage [Member] | ' | ' |
Troubled debt restructuring categorized by loan classification [Abstract] | ' | ' |
Number of contracts | 0 | 4 |
Pre Modification Outstanding Recorded Investment | 0 | 11,539,000 |
Post Modification Outstanding Recorded Investment net of related allowance | 0 | 10,022,000 |
Number of Contracts of troubled debt restructurings subsequently defaulted | ' | 2 |
Troubled debt restructurings subsequently defaulted | ' | 3,200,000 |
Consumer and Other [Member] | ' | ' |
Troubled debt restructuring categorized by loan classification [Abstract] | ' | ' |
Number of contracts | 2 | 1 |
Pre Modification Outstanding Recorded Investment | 277,000 | 36,000 |
Post Modification Outstanding Recorded Investment net of related allowance | 243,000 | 31,000 |
Number of Contracts of troubled debt restructurings subsequently defaulted | 1 | 2 |
Troubled debt restructurings subsequently defaulted | $480,000 | $153,000 |
Loans_and_Allowance_for_Loan_L5
Loans and Allowance for Loan Losses, Financing Receivables Past Due (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 To 89 days past due and performing | $12,950,000 | $10,877,000 | ||
90 days or more past due and performing | 3,346,000 | 0 | ||
Total past due and performing | 16,296,000 | 10,877,000 | ||
Nonperforming | 18,183,000 | [1] | 22,823,000 | [1] |
Current and performing | 4,110,014,000 | 3,678,462,000 | ||
Total Loans | 4,144,493,000 | 3,712,162,000 | ||
Currently performing impaired loans | 10,900,000 | 9,400,000 | ||
Commercial and Industrial [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 To 89 days past due and performing | 1,847,000 | 2,549,000 | ||
90 days or more past due and performing | 825,000 | 0 | ||
Total past due and performing | 2,672,000 | 2,549,000 | ||
Nonperforming | 2,565,000 | [1] | 3,038,000 | [1] |
Current and performing | 1,600,310,000 | 1,440,991,000 | ||
Total Loans | 1,605,547,000 | 1,446,578,000 | ||
Construction and Land Development [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 To 89 days past due and performing | 4,839,000 | 3,511,000 | ||
90 days or more past due and performing | 0 | 0 | ||
Total past due and performing | 4,839,000 | 3,511,000 | ||
Nonperforming | 1,070,000 | [1] | 4,509,000 | [1] |
Current and performing | 310,282,000 | 305,532,000 | ||
Total Loans | 316,191,000 | 313,552,000 | ||
Consumer Real Estate - Mortgage [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 To 89 days past due and performing | 2,215,000 | 3,870,000 | ||
90 days or more past due and performing | 0 | 0 | ||
Total past due and performing | 2,215,000 | 3,870,000 | ||
Nonperforming | 5,289,000 | [1] | 5,906,000 | [1] |
Current and performing | 688,112,000 | 670,150,000 | ||
Total Loans | 695,616,000 | 679,926,000 | ||
Commercial Real Estate Other [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 To 89 days past due and performing | 27,000 | 41,000 | ||
90 days or more past due and performing | 2,232,000 | 0 | ||
Total past due and performing | 2,259,000 | 41,000 | ||
Nonperforming | 1,267,000 | [1] | 1,200,000 | [1] |
Current and performing | 700,611,000 | 582,554,000 | ||
Total Loans | 704,137,000 | 583,795,000 | ||
Commercial Real Estate Owner Occupied [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 To 89 days past due and performing | 2,534,000 | 462,000 | ||
90 days or more past due and performing | 0 | 0 | ||
Total past due and performing | 2,534,000 | 462,000 | ||
Nonperforming | 7,750,000 | [1] | 8,091,000 | [1] |
Current and performing | 669,014,000 | 585,848,000 | ||
Total Loans | 679,298,000 | 594,401,000 | ||
Consumer and Other [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 To 89 days past due and performing | 1,488,000 | 444,000 | ||
90 days or more past due and performing | 289,000 | 0 | ||
Total past due and performing | 1,777,000 | 444,000 | ||
Nonperforming | 242,000 | [1] | 79,000 | [1] |
Current and performing | 141,685,000 | 93,387,000 | ||
Total Loans | $143,704,000 | $93,910,000 | ||
[1] | Approximately $10.9 million and $9.4 million of nonaccrual loans as of December 31, 2013 and 2012, respectively, are currently performing pursuant to their contractual terms. |
Loans_and_Allowance_for_Loan_L6
Loans and Allowance for Loan Losses, Allowance for Credit Losses (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Loans | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | $67,969,693 | $69,417,437 | ' | ||
Troubled debt restructurings classified as impaired loans | 19,600,000 | 27,500,000 | ' | ||
Changes in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning Balance | 69,417,000 | 73,975,000 | 82,575,000 | ||
Charged-off loans | -17,252,736 | -19,657,061 | -34,849,910 | ||
Recovery of previously charged-off loans | 7,948,000 | 9,530,000 | 4,452,000 | ||
Provision for loan losses | 7,857,000 | 5,569,000 | 21,798,000 | ||
Ending Balance | 67,970,000 | 69,417,000 | 73,975,000 | ||
Recovery of a loan previously charged off | 5,600,000 | ' | ' | ||
Loans and other extensions of credit granted to directors, executive officers, and their related entities | 11,200,000 | 8,800,000 | ' | ||
Amount drawn from loans and other extensions of credit granted | 8,900,000 | 8,100,000 | ' | ||
Mortgage loans held-for-sale | 12,850,339 | 41,194,639 | ' | ||
Gain loss on sale of loans held for sale | 6,200,000 | 6,700,000 | 4,200,000 | ||
Number of mortgage loans sold to third party | 15,000 | ' | ' | ||
Mortgage loans sold | 3,200,000,000 | ' | ' | ||
Number of conventional loans underwritten | 4,000 | ' | ' | ||
Percentage of loan to value (in hundredths) | 80.00% | ' | ' | ||
Number of loans underwritten | 3,000 | ' | ' | ||
Home equity and consumer mortgage loans | 681,300,000 | ' | ' | ||
Commercial and Industrial [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 25,134,000 | 24,738,000 | ' | ||
Changes in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning Balance | 24,738,000 | 20,789,000 | 21,426,000 | ||
Charged-off loans | -8,159,000 | -4,612,000 | -15,360,000 | ||
Recovery of previously charged-off loans | 4,531,000 | 7,175,000 | 2,167,000 | ||
Provision for loan losses | 4,024,000 | 1,386,000 | 12,556,000 | ||
Ending Balance | 25,134,000 | 24,738,000 | 20,789,000 | ||
Construction and Land Development [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 7,235,000 | 9,164,000 | ' | ||
Changes in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning Balance | 9,164,000 | 12,040,000 | 19,122,000 | ||
Charged-off loans | -1,351,000 | -2,530,000 | -10,157,000 | ||
Recovery of previously charged-off loans | 1,464,000 | 1,155,000 | 1,530,000 | ||
Provision for loan losses | -2,042,000 | -1,501,000 | 1,545,000 | ||
Ending Balance | 7,235,000 | 9,164,000 | 12,040,000 | ||
Unallocated [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 4,242,000 | 6,025,000 | ' | ||
Changes in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning Balance | 6,025,000 | 6,322,000 | 11,003,000 | ||
Charged-off loans | 0 | 0 | 0 | ||
Recovery of previously charged-off loans | 0 | 0 | 0 | ||
Provision for loan losses | -1,783,000 | -297,000 | -4,681,000 | ||
Ending Balance | 4,242,000 | 6,025,000 | 6,322,000 | ||
Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 8,355,000 | 8,762,000 | ' | ||
Changes in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning Balance | 8,762,000 | 10,302,000 | 9,898,000 | ||
Charged-off loans | -2,250,000 | -6,731,000 | -5,076,000 | ||
Recovery of previously charged-off loans | 1,209,000 | 818,000 | 495,000 | ||
Provision for loan losses | 634,000 | 4,373,000 | 4,985,000 | ||
Ending Balance | 8,355,000 | 8,762,000 | 10,302,000 | ||
Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 21,372,000 | 19,634,000 | ' | ||
Changes in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning Balance | 19,634,000 | 23,397,000 | 19,252,000 | ||
Charged-off loans | -4,123,000 | -4,667,000 | -3,044,000 | ||
Recovery of previously charged-off loans | 500,000 | 285,000 | 116,000 | ||
Provision for loan losses | 5,361,000 | 619,000 | 7,073,000 | ||
Ending Balance | 21,372,000 | 19,634,000 | 23,397,000 | ||
Consumer and Other [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 1,632,000 | 1,094,000 | ' | ||
Changes in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning Balance | 1,094,000 | 1,125,000 | 1,874,000 | ||
Charged-off loans | -1,369,000 | -1,117,000 | -1,213,000 | ||
Recovery of previously charged-off loans | 244,000 | 97,000 | 144,000 | ||
Provision for loan losses | 1,663,000 | 989,000 | 320,000 | ||
Ending Balance | 1,632,000 | 1,094,000 | 1,125,000 | ||
Accruing Loans [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 59,755,000 | 57,815,000 | ' | ||
Accruing Loans [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 24,660,000 | 23,829,000 | ' | ||
Accruing Loans [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 7,186,000 | 8,953,000 | ' | ||
Accruing Loans [Member] | Unallocated [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 0 | 0 | ' | ||
Accruing Loans [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 7,090,000 | 7,336,000 | ' | ||
Accruing Loans [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 19,298,000 | 16,642,000 | ' | ||
Accruing Loans [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 1,521,000 | 1,055,000 | ' | ||
Nonaccrual Loans [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 1,187,000 | 1,764,000 | ' | ||
Nonaccrual Loans [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 218,000 | 814,000 | ' | ||
Nonaccrual Loans [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 33,000 | 201,000 | ' | ||
Nonaccrual Loans [Member] | Unallocated [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 0 | 0 | ' | ||
Nonaccrual Loans [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 722,000 | 573,000 | ' | ||
Nonaccrual Loans [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 142,000 | 154,000 | ' | ||
Nonaccrual Loans [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 72,000 | 22,000 | ' | ||
Troubled Debt Restructurings [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 2,786,000 | [1] | 3,813,000 | [1] | ' |
Troubled Debt Restructurings [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 256,000 | [1] | 95,000 | [1] | ' |
Troubled Debt Restructurings [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 16,000 | [1] | 10,000 | [1] | ' |
Troubled Debt Restructurings [Member] | Unallocated [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 0 | [1] | 0 | [1] | ' |
Troubled Debt Restructurings [Member] | Consumer Real Estate - Mortgage [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 543,000 | [1] | 853,000 | [1] | ' |
Troubled Debt Restructurings [Member] | Commercial Real Estate - Mortgage [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | 1,932,000 | [1] | 2,838,000 | [1] | ' |
Troubled Debt Restructurings [Member] | Consumer and Other [Member] | ' | ' | ' | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ' | ' | ' | ||
Total Allowance for Loan Losses | $39,000 | [1] | $17,000 | [1] | ' |
[1] | Troubled debt restructurings of $19.6 million and $27.5 million as of December 31, 2013 and 2012, respectively, are classified as impaired loans pursuant to U.S. GAAP; however, these loans continue to accrue interest at contractual rates. |
Premises_and_Equipment_and_Lea2
Premises and Equipment and Lease Commitments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, Gross | $139,795,000 | $136,916,000 | ' |
Accumulated depreciation and amortization | -67,145,000 | -61,111,000 | ' |
Premises and equipment, net | 72,649,574 | 75,804,895 | ' |
Depreciation and amortization expense | 6,000,000 | 6,600,000 | 6,600,000 |
Rent expense | 4,400,000 | 4,100,000 | 3,800,000 |
Future minimum lease payments due under operating leases [Abstract] | ' | ' | ' |
2013 | 4,202,000 | ' | ' |
2014 | 4,093,000 | ' | ' |
2015 | 4,189,000 | ' | ' |
2016 | 4,042,000 | ' | ' |
2017 | 3,829,000 | ' | ' |
Thereafter | 29,017,000 | ' | ' |
Total | 49,372,000 | ' | ' |
Land [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, Gross | 19,281,000 | 19,256,000 | ' |
Buildings [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, Gross | 48,558,000 | 47,918,000 | ' |
Buildings [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Range of Useful Lives | '15 years | ' | ' |
Buildings [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Range of Useful Lives | '30 years | ' | ' |
Leasehold Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, Gross | 20,283,000 | 19,031,000 | ' |
Leasehold Improvements [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Range of Useful Lives | '15 years | ' | ' |
Leasehold Improvements [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Range of Useful Lives | '20 years | ' | ' |
Furniture and Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, Gross | $51,673,000 | $50,711,000 | ' |
Furniture and Equipment [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Range of Useful Lives | '3 years | ' | ' |
Furniture and Equipment [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Range of Useful Lives | '15 years | ' | ' |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Scheduled maturities of time deposits [Abstract] | ' | ' |
2013 | $370,295,000 | ' |
2014 | 91,743,000 | ' |
2015 | 32,931,000 | ' |
2016 | 22,186,000 | ' |
2017 | 1,858,000 | ' |
Thereafter | 36,000 | ' |
Time deposits, Total | 519,049,037 | 606,455,873 |
Time Deposits, $250,000 or greater | 77,800,000 | 87,200,000 |
Deposit accounts in overdraft status | $828,000 | $1,000,000 |
Federal_Home_Loan_Bank_Advance2
Federal Home Loan Bank Advances (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2013 | |
Federal Home Loan Bank Advances [Abstract] | ' | ' |
Collateral under borrowing agreements with FHLB | ' | $1,100,000 |
Federal home loan bank advances | 75,609,000 | 90,479,000 |
Remaining discount on Federal home loan bank advances | 241,000 | 158,000 |
Scheduled Maturities [Abstract] | ' | ' |
2013 | ' | 75,000,000 |
2014 | ' | 0 |
2015 | ' | 15,000,000 |
2016 | ' | 0 |
2017 | ' | 12,000 |
Thereafter | ' | 467,000 |
Federal home loan bank advances, Total | ' | 90,479,000 |
Weighted average interest rates [Abstract] | ' | ' |
2013 (in hundredths) | ' | 0.12% |
2014 (in hundredths) | ' | 0.00% |
2015 (in hundredths) | ' | 2.39% |
2016 (in hundredths) | ' | 0.00% |
2017 (in hundredths) | ' | 2.00% |
Thereafter (in hundredths) | ' | 2.45% |
Weighted average interest rate (in hundredths) | ' | 0.51% |
Amount of advances of FHLB | ' | 35,000,000 |
Restructuring of one-time charge | 877,000 | ' |
Weighted average interest rate of advances of FHLB (in hundredths) | ' | 1.79% |
Borrowing availability with FHLB, federal reserve bank discount window and other correspondent banks | ' | $2,000,000,000 |
Investments_in_Affiliated_Comp2
Investments in Affiliated Companies and Subordinated Debt (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Investments in and Advances to Affiliates [Line Items] | ' | ' |
Subordinated term loan with regional bank | $98,658,292 | $106,158,292 |
Maturity | 15-Jun-17 | ' |
Trust I [Member] | ' | ' |
Investments in and Advances to Affiliates [Line Items] | ' | ' |
Date Established | 29-Dec-03 | ' |
Maturity | 30-Dec-33 | ' |
Common Securities | 310,000 | ' |
Trust Preferred Securities | 10,000,000 | ' |
Floating Interest Rate | 'Libor + 2.80% | ' |
Interest Rate at end of period (in hundredths) | 3.04% | ' |
Trust II [Member] | ' | ' |
Investments in and Advances to Affiliates [Line Items] | ' | ' |
Date Established | 15-Sep-05 | ' |
Maturity | 30-Sep-35 | ' |
Common Securities | 619,000 | ' |
Trust Preferred Securities | 20,000,000 | ' |
Floating Interest Rate | 'Libor + 1.40% | ' |
Interest Rate at end of period (in hundredths) | 1.65% | ' |
Trust III [Member] | ' | ' |
Investments in and Advances to Affiliates [Line Items] | ' | ' |
Date Established | 7-Sep-06 | ' |
Maturity | 30-Sep-36 | ' |
Common Securities | 619,000 | ' |
Trust Preferred Securities | 20,000,000 | ' |
Floating Interest Rate | 'Libor + 1.65% | ' |
Interest Rate at end of period (in hundredths) | 1.90% | ' |
Trust IV [Member] | ' | ' |
Investments in and Advances to Affiliates [Line Items] | ' | ' |
Date Established | 31-Oct-07 | ' |
Maturity | 30-Sep-37 | ' |
Common Securities | 928,000 | ' |
Trust Preferred Securities | $30,000,000 | ' |
Floating Interest Rate | 'Libor + 2.85% | ' |
Interest Rate at end of period (in hundredths) | 3.09% | ' |
Investments_in_Affiliated_Comp3
Investments in Affiliated Companies and Subordinated Debt, Part 2 (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Combined Summary Balance Sheets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities | $4,840,068,196 | ' | ' | ' | $4,361,477,257 | ' | ' | ' | ' | ' | ' | ' | $4,840,068,196 | $4,361,477,257 | ' |
Total stockholders' equity | 723,707,661 | ' | ' | ' | 679,071,359 | ' | ' | ' | 710,144,568 | ' | ' | ' | 723,707,661 | 679,071,359 | 710,144,568 |
Total liabilities and stockholders' equity | 5,563,775,857 | ' | ' | ' | 5,040,548,616 | ' | ' | ' | ' | ' | ' | ' | 5,563,775,857 | 5,040,548,616 | ' |
Percentage of common security owned by parent (in hundredths) | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Combined Summary Income Statements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 15,321,000 | 14,647,000 | 14,311,000 | 13,448,000 | 11,730,000 | 11,349,000 | 10,440,000 | 8,365,000 | 7,760,000 | 26,101,000 | 6,372,000 | 3,505,000 | 57,726,201 | 41,883,881 | 43,737,367 |
Combined Summary Statements of Stockholder's Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balances | ' | ' | ' | 679,071,359 | ' | ' | ' | 710,144,568 | ' | ' | ' | 677,457,285 | 679,071,359 | 710,144,568 | 677,457,285 |
Net income (loss) | 15,321,000 | 14,647,000 | 14,311,000 | 13,448,000 | 11,730,000 | 11,349,000 | 10,440,000 | 8,365,000 | 7,760,000 | 26,101,000 | 6,372,000 | 3,505,000 | 57,726,201 | 41,883,881 | 43,737,367 |
Dividends [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,814,691 | 0 | 0 |
Stockholders' equity | 723,707,661 | ' | ' | ' | 679,071,359 | ' | ' | ' | 710,144,568 | ' | ' | ' | 723,707,661 | 679,071,359 | 710,144,568 |
Common Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Combined Summary Balance Sheets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total stockholders' equity | 35,221,941 | ' | ' | ' | ' | ' | ' | ' | 34,354,960 | ' | ' | ' | 35,221,941 | ' | 34,354,960 |
Combined Summary Income Statements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Combined Summary Statements of Stockholder's Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balances | ' | ' | ' | 34,696,597 | ' | ' | ' | ' | ' | ' | ' | 33,870,380 | 34,696,597 | ' | 33,870,380 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Dividends [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Stockholders' equity | 35,221,941 | ' | ' | ' | ' | ' | ' | ' | 34,354,960 | ' | ' | ' | 35,221,941 | ' | 34,354,960 |
Retained Earnings [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Combined Summary Balance Sheets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total stockholders' equity | 142,298,199 | ' | ' | ' | 87,386,689 | ' | ' | ' | 49,783,584 | ' | ' | ' | 142,298,199 | 87,386,689 | 49,783,584 |
Combined Summary Income Statements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57,726,201 | 41,883,881 | 43,737,367 |
Combined Summary Statements of Stockholder's Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balances | ' | ' | ' | 87,386,689 | ' | ' | ' | 49,783,584 | ' | ' | ' | 12,996,202 | 87,386,689 | 49,783,584 | 12,996,202 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57,726,201 | 41,883,881 | 43,737,367 |
Dividends [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,814,691 | ' | ' |
Stockholders' equity | 142,298,199 | ' | ' | ' | 87,386,689 | ' | ' | ' | 49,783,584 | ' | ' | ' | 142,298,199 | 87,386,689 | 49,783,584 |
Trust [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Combined Summary Balance Sheets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset - Investment in subordinated debentures issued by Pinnacle Financial | 82,476,000 | ' | ' | ' | 82,476,000 | ' | ' | ' | ' | ' | ' | ' | 82,476,000 | 82,476,000 | ' |
Liabilities | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Stockholder's equity - Trust preferred securities | 80,000,000 | ' | ' | ' | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | 80,000,000 | 80,000,000 | ' |
Common securities (100% owned by Pinnacle Financial) | 2,476,000 | ' | ' | ' | 2,476,000 | ' | ' | ' | ' | ' | ' | ' | 2,476,000 | 2,476,000 | ' |
Total stockholders' equity | 82,476,000 | ' | ' | ' | 82,476,000 | ' | ' | ' | 82,476,000 | ' | ' | ' | 82,476,000 | 82,476,000 | 82,476,000 |
Total liabilities and stockholders' equity | 82,476,000 | ' | ' | ' | 82,476,000 | ' | ' | ' | ' | ' | ' | ' | 82,476,000 | 82,476,000 | ' |
Combined Summary Income Statements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income - Interest income from subordinated debentures issued by Pinnacle Financial | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,057,000 | 2,218,000 | 2,082,000 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,057,000 | 2,218,000 | 2,082,000 |
Combined Summary Statements of Stockholder's Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balances | ' | ' | ' | 82,476,000 | ' | ' | ' | 82,476,000 | ' | ' | ' | 82,476,000 | 82,476,000 | 82,476,000 | 82,476,000 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,057,000 | 2,218,000 | 2,082,000 |
Issuance of trust preferred securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Dividends [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trust preferred securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,995,000 | -2,151,000 | -2,017,000 |
Common dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -62,000 | -67,000 | -65,000 |
Stockholders' equity | 82,476,000 | ' | ' | ' | 82,476,000 | ' | ' | ' | 82,476,000 | ' | ' | ' | 82,476,000 | 82,476,000 | 82,476,000 |
Trust [Member] | Trust Preferred Securities [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Combined Summary Balance Sheets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total stockholders' equity | 80,000,000 | ' | ' | ' | 80,000,000 | ' | ' | ' | 80,000,000 | ' | ' | ' | 80,000,000 | 80,000,000 | 80,000,000 |
Combined Summary Income Statements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Combined Summary Statements of Stockholder's Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balances | ' | ' | ' | 80,000,000 | ' | ' | ' | 80,000,000 | ' | ' | ' | 80,000,000 | 80,000,000 | 80,000,000 | 80,000,000 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Issuance of trust preferred securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Dividends [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trust preferred securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Common dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Stockholders' equity | 80,000,000 | ' | ' | ' | 80,000,000 | ' | ' | ' | 80,000,000 | ' | ' | ' | 80,000,000 | 80,000,000 | 80,000,000 |
Trust [Member] | Common Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Combined Summary Balance Sheets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total stockholders' equity | 2,476,000 | ' | ' | ' | 2,476,000 | ' | ' | ' | 2,476,000 | ' | ' | ' | 2,476,000 | 2,476,000 | 2,476,000 |
Combined Summary Income Statements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Combined Summary Statements of Stockholder's Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balances | ' | ' | ' | 2,476,000 | ' | ' | ' | 2,476,000 | ' | ' | ' | 2,476,000 | 2,476,000 | 2,476,000 | 2,476,000 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Issuance of trust preferred securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Dividends [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trust preferred securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Common dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Stockholders' equity | 2,476,000 | ' | ' | ' | 2,476,000 | ' | ' | ' | 2,476,000 | ' | ' | ' | 2,476,000 | 2,476,000 | 2,476,000 |
Trust [Member] | Retained Earnings [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Combined Summary Balance Sheets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total stockholders' equity | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 0 |
Combined Summary Income Statements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,057,000 | 2,218,000 | 2,082,000 |
Combined Summary Statements of Stockholder's Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balances | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 0 | 0 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,057,000 | 2,218,000 | 2,082,000 |
Issuance of trust preferred securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Dividends [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trust preferred securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,995,000 | -2,151,000 | -2,017,000 |
Common dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -62,000 | -67,000 | -65,000 |
Stockholders' equity | $0 | ' | ' | ' | $0 | ' | ' | ' | $0 | ' | ' | ' | $0 | $0 | $0 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Abstract] | ' | ' | ' |
Unrecognized tax benefits | $0 | ' | ' |
Accrued interest | 0 | ' | ' |
Accrued penalties | 0 | ' | ' |
Current tax expense (benefit) [Abstract] | ' | ' | ' |
Federal | 26,317,000 | 19,096,000 | 8,157,000 |
State | 0 | 0 | 0 |
Total current tax expense (benefit) | 26,317,000 | 19,096,000 | 8,157,000 |
Deferred tax expense (benefit) [Abstract] | ' | ' | ' |
Federal | 240,000 | 485,000 | -19,646,000 |
State | 1,601,000 | 1,063,000 | -3,749,000 |
Total deferred tax expense (benefit) | 1,841,044 | 1,547,626 | -23,395,052 |
Income tax expense (benefit) | 28,158,277 | 20,643,517 | -15,237,687 |
Federal income tax statutory rate (in hundredths) | 35.00% | ' | ' |
Reconciliation of the differences in income tax (benefit) expense [Abstract] | ' | ' | ' |
Income tax expense (benefit) at statutory rate | 30,059,000 | 21,885,000 | 9,975,000 |
State excise tax expense (benefit), net of federal tax effect | 1,601,000 | 1,063,000 | -255,000 |
Tax-exempt securities | -2,603,000 | -2,517,000 | -2,655,000 |
Federal tax credits | 0 | 0 | 0 |
Bank owned life insurance | -740,000 | -322,000 | -406,000 |
Insurance premiums | -349,000 | -243,000 | -151,000 |
Other items | 190,000 | 778,000 | 734,000 |
Deferred tax valuation allowance | 0 | 0 | -22,480,000 |
Income tax expense (benefit) | 28,158,277 | 20,643,517 | -15,237,687 |
Deferred tax assets [Abstract] | ' | ' | ' |
Loan loss allowance | 26,134,000 | 26,777,000 | ' |
Loans | 914,000 | 423,000 | ' |
Insurance | 732,000 | 691,000 | ' |
Accrued liability for supplemental retirement agreements | 538,000 | 510,000 | ' |
Restricted stock and stock options | 4,100,000 | 3,777,000 | ' |
Net operating loss carryforward | 1,914,000 | 3,593,000 | ' |
Alternative minimum tax carryforward | 0 | 0 | ' |
Other real estate owned | 2,231,000 | 3,222,000 | ' |
Other deferred tax assets | 1,177,000 | 1,430,000 | ' |
Total deferred tax assets | 37,740,000 | 40,423,000 | ' |
Deferred tax liabilities [Abstract] | ' | ' | ' |
Depreciation and amortization | 6,145,000 | 7,110,000 | ' |
Core deposit intangible asset | 1,242,000 | 1,700,000 | ' |
Securities | -1,704,000 | 12,024,000 | ' |
Cash flow hedge | 2,591,000 | 0 | ' |
REIT dividends | 1,393,000 | 371,000 | ' |
FHLB related liabilities | 1,316,000 | 1,724,000 | ' |
Other deferred tax liabilities | 521,000 | 554,000 | ' |
Total deferred tax liabilities | 11,504,000 | 23,483,000 | ' |
Net deferred tax assets | $26,236,000 | $16,940,000 | ' |
Cumulative pre-tax loss position period (in years) | '3 years | ' | ' |
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Loss Contingencies [Line Items] | ' |
Inherent risks associated with off balance sheet commitments | $1,371,000 |
Commitments to Extend Credit [Member] | ' |
Loss Contingencies [Line Items] | ' |
Amount of commitment | 1,210,000,000 |
Commitments to Extend Credit [Member] | Home equity [Member] | ' |
Loss Contingencies [Line Items] | ' |
Amount of commitment | 183,000,000 |
Standby Letters of Credit [Member] | ' |
Loss Contingencies [Line Items] | ' |
Amount of commitment | $69,200,000 |
Maximum [Member] | ' |
Loss Contingencies [Line Items] | ' |
Expiry period of standby letter of credit, maximum (in years) | '2 years |
Salary_Deferral_Plans_Details
Salary Deferral Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Salary Deferral Plan [Abstract] | ' | ' | ' |
Employees contributions (in hundredths) | 50.00% | ' | ' |
Employer matching contribution to first 4% (in hundredths) | 100.00% | ' | ' |
Percentage of employee self-directed contributions matched by employer (in hundredths) | 4.00% | ' | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' | ' |
Compensation expense | $2,241,000 | $2,185,000 | $1,887,000 |
Other liabilities | 46,041,823 | 48,252,519 | ' |
Cavalry ESOP [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' | ' |
Compensation expense | 178,000 | 220,000 | 330,000 |
Period to distribute accumulated gains to participant | '15 years | ' | ' |
Number of participant accepting the settlement | 11 | ' | ' |
Number of remaining participant in agreements | 2 | ' | ' |
Other liabilities | $1,373,000 | $1,301,000 | $1,200,000 |
Discount rate of fair value of future obligation owed to remaining participants (in hundredths) | 5.00% | 5.00% | 5.00% |
Stock_Options_Stock_Appreciati2
Stock Options, Stock Appreciation Rights, Restricted Shares and Salary Stock Units (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Stock Options, Stock Appreciation Rights, Restricted Shares and Salary Stock Units [Abstract] | ' | ' | ' | ' | |||
Number of equity incentive plan | ' | 2 | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |||
Shares available for issuances (in shares) | ' | 476,000 | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Granted (in shares) | ' | ' | 225,228 | ' | |||
Restricted Stock Units [Abstract] | ' | ' | ' | ' | |||
Compensation costs attributable to the SSUs | ' | $4,082,132 | $4,414,452 | $5,018,294 | |||
Stock Options [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Exercised (in shares) | ' | -279,534 | -245,201 | -163,829 | |||
Outstanding, Ending Balance (in shares) | ' | 997,000 | ' | ' | |||
Weighted average exercise price [Abstract] | ' | ' | ' | ' | |||
Exercised (in dollars per share) | ' | $14.07 | $6.78 | $6.20 | |||
Aggregate intrisic value [Abstract] | ' | ' | ' | ' | |||
Number of award option vested with no intrinsic value (in shares) | ' | 32,671 | ' | ' | |||
Stock Appreciation Rights (SARs) [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Exercised (in shares) | ' | -1,732 | [1] | -348 | [1] | 0 | [1] |
Outstanding, Ending Balance (in shares) | ' | 5,500 | ' | ' | |||
Weighted average exercise price [Abstract] | ' | ' | ' | ' | |||
Exercised (in dollars per share) | ' | $15.60 | [1] | $15.60 | [1] | $15.60 | [1] |
Aggregate intrisic value [Abstract] | ' | ' | ' | ' | |||
Number of shares settled for exercise of stock appreciation rights (in shares) | ' | 471 | 28 | 0 | |||
Common Stock Options and Stock Appreciation Rights [Member] | ' | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |||
Vesting period (in years) | ' | '5 years | ' | ' | |||
Exercisable period | ' | '10 years | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Outstanding, Beginning Balance (in shares) | 1,581,038 | 1,318,381 | 1,581,038 | 1,795,785 | |||
Granted (in shares) | ' | 0 | 0 | 0 | |||
Forfeited (in shares) | ' | -34,615 | -17,108 | -50,918 | |||
Outstanding, Ending Balance (in shares) | ' | 1,002,500 | 1,318,381 | 1,581,038 | |||
Outstanding and expected to vest (in shares) | ' | 1,002,500 | ' | ' | |||
Options exercisable (in shares) | ' | 1,002,500 | ' | ' | |||
Weighted average exercise price [Abstract] | ' | ' | ' | ' | |||
Outstanding, Beginning Balance (in dollars per share) | $20.81 | $23.36 | $20.81 | $19.49 | |||
Granted (in dollars per share) | ' | ' | $0 | $0 | |||
Exercised (in dollars per share) | ' | $0 | ' | ' | |||
Forfeited (in dollars per share) | ' | $29.31 | $25.90 | $23.44 | |||
Outstanding, Ending Balance (in dollars per share) | ' | $25.77 | $23.36 | $20.81 | |||
Outstanding and expected to vest (in dollars per share) | ' | $25.77 | ' | ' | |||
Options exercisable (in dollars per share) | ' | $25.77 | ' | ' | |||
Weighted average contractual remaining term [Abstract] | ' | ' | ' | ' | |||
Outstanding | ' | '2 years 5 months 23 days | ' | ' | |||
Outstanding and expected to vest | ' | '2 years 5 months 23 days | ' | ' | |||
Options exercisable | ' | '2 years 5 months 23 days | ' | ' | |||
Aggregate intrisic value [Abstract] | ' | ' | ' | ' | |||
Outstanding | ' | 7,097,000 | [2] | ' | ' | ||
Outstanding and expected to vest | ' | 7,097,000 | [2] | ' | ' | ||
Options exercisable | ' | 7,097,000 | [2] | ' | ' | ||
Quoted closing price of common stock (in dollars per share) | ' | $32.53 | ' | ' | |||
Number of awards used in aggregate intrinsic value (in shares) | ' | 931,425 | ' | ' | |||
Average exercise price of option awards with no intrinsic value (in dollars per share) | ' | $21.51 | ' | ' | |||
Exercises in period total intrinsic value | ' | 3,622,000 | 2,501,000 | 1,330,000 | |||
Unrecognized compensation cost related to unvested stock options granted | ' | 0 | ' | ' | |||
Weighted average recognition period of unrecognized compensation cost | ' | '3 months | ' | ' | |||
Incentive Stock Options [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Granted (in shares) | ' | 246,000 | ' | ' | |||
Non Qualified Stock Option Awards [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Granted (in shares) | ' | 757,000 | ' | ' | |||
Share-based compensation [Abstract] | ' | ' | ' | ' | |||
Share based compensation expense | ' | 12,470 | 394,466 | 1,196,059 | |||
Deferred income tax benefit | ' | 4,892 | 154,749 | 469,214 | |||
Share based compensation expense after deferred income tax benefit | ' | 7,578 | 239,717 | 726,845 | |||
Impact on per share results from stock based compensation [Abstract] | ' | ' | ' | ' | |||
Basic (in dollars per share) | ' | $0 | $0.01 | $0.02 | |||
Diluted (in dollars per share) | ' | $0 | $0.01 | $0.02 | |||
Restricted Share [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Granted (in shares) | 186,943 | ' | ' | ' | |||
Share-based compensation [Abstract] | ' | ' | ' | ' | |||
Share based compensation expense | ' | 4,069,661 | [3] | 3,270,028 | [3] | 3,239,677 | [3] |
Deferred income tax benefit | ' | 1,596,528 | 1,282,832 | 1,270,925 | |||
Share based compensation expense after deferred income tax benefit | ' | 2,473,133 | 1,987,196 | 1,968,752 | |||
Impact on per share results from stock based compensation [Abstract] | ' | ' | ' | ' | |||
Basic (in dollars per share) | ' | $0.07 | $0.06 | $0.06 | |||
Diluted (in dollars per share) | ' | $0.07 | $0.06 | $0.06 | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Unvested, Beginning of period (in shares) | 849,703 | 739,909 | 849,703 | 640,394 | |||
Shares awarded (in shares) | ' | 164,602 | 156,645 | 361,966 | |||
Conversion of restricted share units to restricted share awards | ' | 193,189 | ' | ' | |||
Restrictions lapsed and shares released to associates/directors (in shares) | ' | -221,325 | -211,913 | -90,406 | |||
Shares forfeited (in shares) | ' | -54,680 | -54,526 | -62,251 | |||
Unvested, Ending period (in shares) | ' | 821,695 | 739,909 | 849,703 | |||
Grant date weighted average cost [Roll Forward] | ' | ' | ' | ' | |||
Unvested (in dollars per share) | $15.61 | $15.45 | $15.61 | $17.63 | |||
Shares awarded (in dollars per share) | ' | $21.78 | $16.48 | $13.38 | |||
Conversion of restricted share units to restricted share awards (in dollars per share) | ' | $21.51 | ' | ' | |||
Restrictions lapsed and shares released to associates/directors (in dollars per share) | ' | $15.97 | $16.28 | $17.62 | |||
Shares forfeited (in dollars per share) | ' | $15.30 | $18.23 | $20.66 | |||
Unvested (in dollars per share) | ' | $19.18 | $15.45 | $15.61 | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ' | ' | ' | ' | |||
Shares awarded (in shares) | ' | 164,602 | 156,645 | 361,966 | |||
Shares forfeited by participants (in shares) | ' | 54,680 | 54,526 | 62,251 | |||
Shares Unvested (in shares) | ' | 821,695 | 739,909 | 849,703 | |||
Share based compensation reversed | ' | ' | $149,000 | ' | |||
Restricted Stock Units [Abstract] | ' | ' | ' | ' | |||
Number of restricted shares to be converted from restricted share units (in shares) | 186,943 | ' | ' | ' | |||
Percentage of restricted shares lapse per year (in hundredths) | ' | 20.00% | ' | ' | |||
Period over which restricted shares lapse (in years) | ' | '5 years | ' | ' | |||
Restricted Share [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Restricted Stock Units [Abstract] | ' | ' | ' | ' | |||
Percentage of restricted shares issuable (in hundredths) | ' | 0.00% | ' | ' | |||
Restricted Share [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Restricted Stock Units [Abstract] | ' | ' | ' | ' | |||
Percentage of restricted shares issuable (in hundredths) | ' | 100.00% | ' | ' | |||
Time Based Awards 2010 [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Shares awarded (in shares) | ' | 144,145 | [4] | ' | ' | ||
Shares forfeited (in shares) | ' | -14,442 | [4] | ' | ' | ||
Unvested, Ending period (in shares) | ' | 75,319 | [4] | ' | ' | ||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ' | ' | ' | ' | |||
Vesting Period in years | ' | '5 years | [4] | ' | ' | ||
Shares awarded (in shares) | ' | 144,145 | [4] | ' | ' | ||
Restrictions lapsed and shares released to participants (in shares) | ' | 40,988 | [4],[5] | ' | ' | ||
Shares withheld for taxes by participants (in shares) | ' | 13,396 | [4],[5] | ' | ' | ||
Shares forfeited by participants (in shares) | ' | 14,442 | [4] | ' | ' | ||
Shares Unvested (in shares) | ' | 75,319 | [4] | ' | ' | ||
Time Based Awards 2011 [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Shares awarded (in shares) | ' | 141,665 | [4] | ' | ' | ||
Shares forfeited (in shares) | ' | -11,200 | [4] | ' | ' | ||
Unvested, Ending period (in shares) | ' | 103,692 | [4] | ' | ' | ||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ' | ' | ' | ' | |||
Vesting Period in years | ' | '5 years | [4] | ' | ' | ||
Shares awarded (in shares) | ' | 141,665 | [4] | ' | ' | ||
Restrictions lapsed and shares released to participants (in shares) | ' | 19,617 | [4],[5] | ' | ' | ||
Shares withheld for taxes by participants (in shares) | ' | 7,156 | [4],[5] | ' | ' | ||
Shares forfeited by participants (in shares) | ' | 11,200 | [4] | ' | ' | ||
Shares Unvested (in shares) | ' | 103,692 | [4] | ' | ' | ||
Time Based Awards 2012 [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Shares awarded (in shares) | ' | 150,125 | [4] | ' | ' | ||
Shares forfeited (in shares) | ' | -3,675 | [4] | ' | ' | ||
Unvested, Ending period (in shares) | ' | 146,450 | [4] | ' | ' | ||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ' | ' | ' | ' | |||
Vesting Period in years | ' | '5 years | [4] | ' | ' | ||
Shares awarded (in shares) | ' | 150,125 | [4] | ' | ' | ||
Restrictions lapsed and shares released to participants (in shares) | ' | 0 | [4],[5] | ' | ' | ||
Shares withheld for taxes by participants (in shares) | ' | 0 | [4],[5] | ' | ' | ||
Shares forfeited by participants (in shares) | ' | 3,675 | [4] | ' | ' | ||
Shares Unvested (in shares) | ' | 146,450 | [4] | ' | ' | ||
Performance Based Awards [Member] | ' | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |||
Vesting period (in years) | ' | '10 years | ' | ' | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ' | ' | ' | ' | |||
Age of option holder considered for vesting of individual awards | ' | '65 years | ' | ' | |||
Performance Based Awards 2010 One [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Shares awarded (in shares) | ' | 152,093 | [6],[7] | ' | ' | ||
Shares forfeited (in shares) | ' | -5,173 | [6],[7] | ' | ' | ||
Unvested, Ending period (in shares) | ' | 102,467 | [6],[7] | ' | ' | ||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ' | ' | ' | ' | |||
Vesting Period in years | ' | '10 years | [6],[7] | ' | ' | ||
Shares awarded (in shares) | ' | 152,093 | [6],[7] | ' | ' | ||
Restrictions lapsed and shares released to participants (in shares) | ' | 32,679 | [5],[6],[7] | ' | ' | ||
Shares withheld for taxes by participants (in shares) | ' | 11,774 | [5],[6],[7] | ' | ' | ||
Shares forfeited by participants (in shares) | ' | 5,173 | [6],[7] | ' | ' | ||
Shares Unvested (in shares) | ' | 102,467 | [6],[7] | ' | ' | ||
Installment of forfeitures restrictions that lapse on second anniversary (in hundredths) | ' | 66.60% | ' | ' | |||
Installment of forfeitures restrictions that lapse on third anniversary (in hundredths) | ' | 33.40% | ' | ' | |||
Performance Based Awards 2010 Two [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Shares awarded (in shares) | ' | 29,595 | [6],[8] | ' | ' | ||
Shares forfeited (in shares) | ' | 0 | [6],[8] | ' | ' | ||
Unvested, Ending period (in shares) | ' | 19,732 | [6],[8] | ' | ' | ||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ' | ' | ' | ' | |||
Vesting Period in years | ' | '3 years | [6],[8] | ' | ' | ||
Shares awarded (in shares) | ' | 29,595 | [6],[8] | ' | ' | ||
Restrictions lapsed and shares released to participants (in shares) | ' | 7,162 | [5],[6],[8] | ' | ' | ||
Shares withheld for taxes by participants (in shares) | ' | 2,701 | [5],[6],[8] | ' | ' | ||
Shares forfeited by participants (in shares) | ' | 0 | [6],[8] | ' | ' | ||
Shares Unvested (in shares) | ' | 19,732 | [6],[8] | ' | ' | ||
Performance Based Awards 2010 Three [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Shares awarded (in shares) | ' | 21,097 | [6],[9] | ' | ' | ||
Shares forfeited (in shares) | ' | -1,883 | [6],[9] | ' | ' | ||
Unvested, Ending period (in shares) | ' | 6,183 | [6],[9] | ' | ' | ||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ' | ' | ' | ' | |||
Vesting Period in years | ' | '3 years | [6],[9] | ' | ' | ||
Shares awarded (in shares) | ' | 21,097 | [6],[9] | ' | ' | ||
Restrictions lapsed and shares released to participants (in shares) | ' | 9,746 | [5],[6],[9] | ' | ' | ||
Shares withheld for taxes by participants (in shares) | ' | 3,285 | [5],[6],[9] | ' | ' | ||
Shares forfeited by participants (in shares) | ' | 1,883 | [6],[9] | ' | ' | ||
Shares Unvested (in shares) | ' | 6,183 | [6],[9] | ' | ' | ||
Performance Based Awards 2011 One [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Shares awarded (in shares) | ' | 193,189 | [6],[7] | ' | ' | ||
Shares forfeited (in shares) | ' | 0 | [6],[7] | ' | ' | ||
Unvested, Ending period (in shares) | ' | 193,189 | [6],[7] | ' | ' | ||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ' | ' | ' | ' | |||
Vesting Period in years | ' | '5 years | [6],[7] | ' | ' | ||
Shares awarded (in shares) | ' | 193,189 | [6],[7] | ' | ' | ||
Restrictions lapsed and shares released to participants (in shares) | ' | 0 | [5],[6],[7] | ' | ' | ||
Shares withheld for taxes by participants (in shares) | ' | 0 | [5],[6],[7] | ' | ' | ||
Shares forfeited by participants (in shares) | ' | 0 | [6],[7] | ' | ' | ||
Shares Unvested (in shares) | ' | 193,189 | [6],[7] | ' | ' | ||
Outside Director Awards [Member] | ' | ' | ' | ' | |||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ' | ' | ' | ' | |||
Number of board members that resigned during period | ' | 2 | ' | ' | |||
Shares forfeited related to directors who resigned their board seats (in shares) | ' | 1,253 | ' | ' | |||
Outside Director Awards 2010 [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Shares awarded (in shares) | ' | 15,036 | [10] | ' | ' | ||
Shares forfeited (in shares) | ' | -2,506 | [10] | ' | ' | ||
Unvested, Ending period (in shares) | ' | 0 | [10] | ' | ' | ||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ' | ' | ' | ' | |||
Vesting Period in years | ' | '1 year | [10] | ' | ' | ||
Shares awarded (in shares) | ' | 15,036 | [10] | ' | ' | ||
Restrictions lapsed and shares released to participants (in shares) | ' | 10,339 | [10],[5] | ' | ' | ||
Shares withheld for taxes by participants (in shares) | ' | 2,191 | [10],[5] | ' | ' | ||
Shares forfeited by participants (in shares) | ' | 2,506 | [10] | ' | ' | ||
Shares Unvested (in shares) | ' | 0 | [10] | ' | ' | ||
Outside Director Awards 2011 [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Shares awarded (in shares) | ' | 14,980 | [10] | ' | ' | ||
Shares forfeited (in shares) | ' | 0 | [10] | ' | ' | ||
Unvested, Ending period (in shares) | ' | 0 | [10] | ' | ' | ||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ' | ' | ' | ' | |||
Vesting Period in years | ' | '1 year | [10] | ' | ' | ||
Shares awarded (in shares) | ' | 14,980 | [10] | ' | ' | ||
Restrictions lapsed and shares released to participants (in shares) | ' | 12,730 | [10],[5] | ' | ' | ||
Shares withheld for taxes by participants (in shares) | ' | 2,250 | [10],[5] | ' | ' | ||
Shares forfeited by participants (in shares) | ' | 0 | [10] | ' | ' | ||
Shares Unvested (in shares) | ' | 0 | [10] | ' | ' | ||
Outside Director Awards 2012 [Member] | ' | ' | ' | ' | |||
Number [Roll Forward] | ' | ' | ' | ' | |||
Shares awarded (in shares) | ' | 14,477 | [10] | ' | ' | ||
Shares forfeited (in shares) | ' | 0 | [10] | ' | ' | ||
Unvested, Ending period (in shares) | ' | 13,348 | [10] | ' | ' | ||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ' | ' | ' | ' | |||
Vesting Period in years | ' | '1 year | [10] | ' | ' | ||
Shares awarded (in shares) | ' | 14,477 | [10] | ' | ' | ||
Restrictions lapsed and shares released to participants (in shares) | ' | 1,129 | [10],[5] | ' | ' | ||
Shares withheld for taxes by participants (in shares) | ' | 0 | [10],[5] | ' | ' | ||
Shares forfeited by participants (in shares) | ' | 0 | [10] | ' | ' | ||
Shares Unvested (in shares) | ' | 13,348 | [10] | ' | ' | ||
The Mid America Plans [Member] | ' | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |||
Shares available for issuances (in shares) | ' | 73,000 | ' | ' | |||
Common stock exchange ratio (in hundredths) | ' | 46.55% | ' | ' | |||
Reduction in exercise price (in dollars per share) | ' | $1.50 | ' | ' | |||
Common stock to be acquired by participants (in shares) | ' | 58,013 | ' | ' | |||
The Mid America Plans [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |||
Award expiry period | ' | 30-Jun-11 | ' | ' | |||
Exercise price (in dollars per share) | ' | $12.89 | ' | ' | |||
The Mid America Plans [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |||
Award expiry period | ' | 31-Jul-17 | ' | ' | |||
Exercise price (in dollars per share) | ' | $20.41 | ' | ' | |||
[1] | The 348 stock appreciation rights exercised during 2012 settled in 28 shares of Pinnacle Financial common stock. The 1,732 stock appreciation rights exercised during 2013 settled in 471 shares of Pinnacle Financial common stock. | ||||||
[2] | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of Pinnacle Financial common stock of $32.53 per common share at December 31, 2013 for the 931,425 options and stock appreciation rights that were in-the-money at December 31, 2013. | ||||||
[3] | During the year ended December 31, 2011, $149,000 in previously expensed compensation associated with certain tranches of performance-based restricted share awards was reversed when Pinnacle Financial determined that the performance targets required to vest the awards, which were previously expected to be met, were unlikely to be achieved. | ||||||
[4] | These shares vest in equal annual installments on the first five anniversary dates of the grant. | ||||||
[5] | Groups include our employees (referred to as associates above), our executive managers (referred to as our Leadership Team above) and our outside directors. Included in the Leadership Team awards noted above are awards to our named executive officers. When the restricted shares are awarded, a participant receives voting rights with respect to the shares, but is not able to transfer the shares other than to Pinnacle Financial in satisfaction of withholding tax obligations until the later of the date that the forfeiture restrictions have lapsed and, for awards issued prior to the redemption of the preferred stock issued under the CPP, the later of the date that the forfeiture restrictions lapse and the date we redeemed the remaining outstanding shares of Series A preferred stock issued to the US Treasury pursuant to the CPP, which was completed on June 21, 2012. Once the forfeiture restrictions lapse, the participant is taxed on the value of the award and may elect to sell shares to pay the applicable income taxes associated with the award or have these shares remitted to Pinnacle Financial. | ||||||
[6] | The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain earnings and soundness targets over each year of the subsequent vesting period (or alternatively, the cumulative vesting period), excluding the impact of any merger related expenses. For those grants with a 10 year vesting period, the vesting period for an individual award is equal to ten years or the number of years remaining before an associate reaches the age of 65, whichever is less. | ||||||
[7] | These awards include a provision that the shares do not vest if Pinnacle Financial is not profitable for the fiscal year immediately preceding the vesting date. | ||||||
[8] | The forfeiture restrictions on these restricted share awards lapse in installments as follows: 66.6% on the second anniversary date should Pinnacle Financial achieve certain earnings and soundness targets, and 33.4% on the third anniversary date should Pinnacle Financial achieve certain earnings and soundness targets in each of these periods (or, alternatively, the cumulative three-year period). | ||||||
[9] | The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve soundness targets over each year of the subsequent vesting period. | ||||||
[10] | Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapsed on the one year anniversary date of the award based on each individual board member meeting his/her attendance goals for the various board and board committee meetings to which each member was scheduled to attend. |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Forward Cash Flow Hedge Relationship [Abstract] | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss), Description | $4,013,570 | $0 | $0 |
Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Interest rate swap agreements [Abstract] | ' | ' | ' |
Notional Amount of Interest rate swap | 588,972,000 | 472,754,000 | ' |
Estimated Fair Value of Interest rate swap | -374,000 | -234,000 | ' |
Forward Cash Flow Hedge Relationship [Abstract] | ' | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 6,604,000 | ' | ' |
Forecasted Notional Amount | 198,000,000 | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 6,604,000 | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss), Description | 4,013,057 | ' | ' |
Pay Fixed / Receive Variable Swaps [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Interest rate swap agreements [Abstract] | ' | ' | ' |
Notional Amount of Interest rate swap | 294,486,000 | 236,377,000 | ' |
Estimated Fair Value of Interest rate swap | 13,296,000 | 16,132,000 | ' |
Pay Variable / Receive Fixed Swaps [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Interest rate swap agreements [Abstract] | ' | ' | ' |
Notional Amount of Interest rate swap | 294,486,000 | 236,377,000 | ' |
Estimated Fair Value of Interest rate swap | -13,670,000 | -16,366,000 | ' |
Interest Rate Swap April2015 April2018 [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Forward Cash Flow Hedge Relationship [Abstract] | ' | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 463,000 | ' | ' |
Forecasted Notional Amount | 33,000,000 | ' | ' |
Fixed Interest Rate | 1.43% | ' | ' |
Term, Lower Maturity Range Date | 30-Apr-15 | ' | ' |
Term, Higher Maturity Range Date | 30-Apr-18 | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 463,000 | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss), Description | 281,000 | ' | ' |
Interest Rate Swap October2015 April 2019 [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Forward Cash Flow Hedge Relationship [Abstract] | ' | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 837,000 | ' | ' |
Forecasted Notional Amount | 33,000,000 | ' | ' |
Fixed Interest Rate | 1.86% | ' | ' |
Term, Lower Maturity Range Date | 31-Oct-15 | ' | ' |
Term, Higher Maturity Range Date | 30-Apr-19 | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 837,000 | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss), Description | 509,000 | ' | ' |
Interest Rate Swap October 2015 October 2019 [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Forward Cash Flow Hedge Relationship [Abstract] | ' | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 1,007,000 | ' | ' |
Forecasted Notional Amount | 33,000,000 | ' | ' |
Fixed Interest Rate | 2.00% | ' | ' |
Term, Lower Maturity Range Date | 31-Oct-15 | ' | ' |
Term, Higher Maturity Range Date | 31-Oct-19 | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 1,007,000 | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss), Description | 612,000 | ' | ' |
Interest Rate Swap April 2016 April 2020 [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Forward Cash Flow Hedge Relationship [Abstract] | ' | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 1,172,000 | ' | ' |
Forecasted Notional Amount | 33,000,000 | ' | ' |
Fixed Interest Rate | 2.27% | ' | ' |
Term, Lower Maturity Range Date | 30-Apr-16 | ' | ' |
Term, Higher Maturity Range Date | 30-Apr-20 | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 1,172,000 | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss), Description | 712,000 | ' | ' |
Interest Rate Swap April 2016 April 2022 [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Forward Cash Flow Hedge Relationship [Abstract] | ' | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 1,818,000 | ' | ' |
Forecasted Notional Amount | 33,000,000 | ' | ' |
Fixed Interest Rate | 2.65% | ' | ' |
Term, Lower Maturity Range Date | 30-Apr-16 | ' | ' |
Term, Higher Maturity Range Date | 30-Apr-22 | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 1,818,000 | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss), Description | 1,105,000 | ' | ' |
Interest Rate Swap October 2016 October 2020 [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Forward Cash Flow Hedge Relationship [Abstract] | ' | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 1,307,000 | ' | ' |
Forecasted Notional Amount | 33,000,000 | ' | ' |
Fixed Interest Rate | 2.52% | ' | ' |
Term, Lower Maturity Range Date | 31-Oct-16 | ' | ' |
Term, Higher Maturity Range Date | 31-Oct-20 | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 1,307,000 | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss), Description | $795,000 | ' | ' |
Employment_Contracts_Details
Employment Contracts (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Executive | |
Agreement | |
Employment Contracts [Abstract] | ' |
Number of continuously automatic renewing employment agreements amended | 4 |
Term of automatic renewing employment agreements (in years) | '3 years |
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 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Related Party Transaction [Line Items] | ' | ' | ' |
Number of directors regarding supplemental retirement agreement obligations | 2 | ' | ' |
Director [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Public relations expenses | $72,000 | $78,000 | $242,000 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Investment securities available for sale [Abstract] | ' | ' | ||
Alternative investments | $6,701,000 | $4,214,000 | ||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | ' | ' | ||
Valuation allowance of impaired loans | 1,200,000 | 1,800,000 | ||
Other Liabilities [Member] | ' | ' | ||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | ' | ' | ||
Fair value, January 1 | 0 | 0 | ||
Total net realized (losses) gains included in income | 0 | 0 | ||
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at December 31 | 0 | 0 | ||
Purchases | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair value, December 31 | 0 | 0 | ||
Total realized (losses) gains included in income related to financial assets and liabilities still on the consolidated balance sheet at December 31 | 0 | 0 | ||
Other Assets [Member] | ' | ' | ||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | ' | ' | ||
Fair value, January 1 | 4,681,000 | 3,899,000 | ||
Total net realized (losses) gains included in income | -344,000 | -102,000 | ||
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at December 31 | 0 | 0 | ||
Purchases | 2,517,000 | 1,287,000 | ||
Issuances | 0 | 0 | ||
Settlements | -153,000 | -403,000 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair value, December 31 | 6,701,000 | 4,681,000 | ||
Total realized (losses) gains included in income related to financial assets and liabilities still on the consolidated balance sheet at December 31 | -344,000 | -102,000 | ||
Recurring [Member] | ' | ' | ||
Investment securities available for sale [Abstract] | ' | ' | ||
U.S. government agency securities | 103,873,000 | 110,452,000 | ||
Mortgage-backed securities | 412,936,000 | 375,651,000 | ||
State and municipal securities | 148,411,000 | 191,727,000 | ||
Agency- backed securities | 17,007,000 | 17,352,000 | ||
Corporate notes and other | 11,229,000 | 11,396,000 | ||
Total investment securities available-for-sale | 693,456,000 | 706,578,000 | ||
Alternative investments | 6,701,000 | 4,214,000 | ||
Other assets | 19,900,000 | 16,599,000 | ||
Total assets at fair value | 720,057,000 | 727,391,000 | ||
Liabilities at fair value [Abstract] | ' | ' | ||
Other liabilities | 13,670,000 | 16,366,000 | ||
Total liabilities at fair value | 13,670,000 | 16,366,000 | ||
Recurring [Member] | Quoted Market Prices in an Active Market (Level 1) [Member] | ' | ' | ||
Investment securities available for sale [Abstract] | ' | ' | ||
U.S. government agency securities | 0 | 0 | ||
Mortgage-backed securities | 0 | 0 | ||
State and municipal securities | 0 | 0 | ||
Agency- backed securities | ' | 0 | ||
Corporate notes and other | 0 | 0 | ||
Total investment securities available-for-sale | 0 | 0 | ||
Alternative investments | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets at fair value | 0 | 0 | ||
Liabilities at fair value [Abstract] | ' | ' | ||
Other liabilities | 0 | 0 | ||
Total liabilities at fair value | 0 | 0 | ||
Recurring [Member] | Models with Significant Observable Market Parameters (Level 2) [Member] | ' | ' | ||
Investment securities available for sale [Abstract] | ' | ' | ||
U.S. government agency securities | 103,873,000 | 110,452,000 | ||
Mortgage-backed securities | 412,936,000 | 375,651,000 | ||
State and municipal securities | 148,411,000 | 191,727,000 | ||
Agency- backed securities | 17,007,000 | 17,352,000 | ||
Corporate notes and other | 11,229,000 | 11,396,000 | ||
Total investment securities available-for-sale | 693,456,000 | 706,578,000 | ||
Alternative investments | 0 | 0 | ||
Other assets | 19,900,000 | 16,132,000 | ||
Total assets at fair value | 713,356,000 | 722,710,000 | ||
Liabilities at fair value [Abstract] | ' | ' | ||
Other liabilities | 13,670,000 | 16,366,000 | ||
Total liabilities at fair value | 13,670,000 | 16,366,000 | ||
Recurring [Member] | Models with Significant Unobservable Market Parameters (Level 3) [Member] | ' | ' | ||
Investment securities available for sale [Abstract] | ' | ' | ||
U.S. government agency securities | 0 | 0 | ||
Mortgage-backed securities | 0 | 0 | ||
State and municipal securities | 0 | 0 | ||
Agency- backed securities | ' | 0 | ||
Corporate notes and other | 0 | 0 | ||
Total investment securities available-for-sale | 0 | 0 | ||
Alternative investments | 6,701,000 | 4,214,000 | ||
Other assets | 0 | 467,000 | ||
Total assets at fair value | 6,701,000 | 4,681,000 | ||
Liabilities at fair value [Abstract] | ' | ' | ||
Other liabilities | 0 | 0 | ||
Total liabilities at fair value | 0 | 0 | ||
Nonrecurring [Member] | ' | ' | ||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | ' | ' | ||
Other real estate owned | 15,226,000 | 18,580,000 | ||
Nonperforming loans, net | 16,996,000 | [1] | 21,059,000 | [1] |
Total | 32,222,000 | 39,639,000 | ||
Gain (losses) on Other real estate owned | -2,258,000 | -5,428,000 | ||
Gain (losses) on Impaired loans, net | -2,921,000 | [1] | -4,745,000 | [1] |
Total gains (losses) | -5,179,000 | -10,173,000 | ||
Nonrecurring [Member] | Quoted Market Prices in an Active Market (Level 1) [Member] | ' | ' | ||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | ' | ' | ||
Other real estate owned | 0 | 0 | ||
Nonperforming loans, net | 0 | [1] | 0 | [1] |
Total | 0 | 0 | ||
Nonrecurring [Member] | Models with Significant Observable Market Parameters (Level 2) [Member] | ' | ' | ||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | ' | ' | ||
Other real estate owned | 0 | 0 | ||
Nonperforming loans, net | 0 | [1] | 0 | [1] |
Total | 0 | 0 | ||
Nonrecurring [Member] | Models with Significant Unobservable Market Parameters (Level 3) [Member] | ' | ' | ||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | ' | ' | ||
Other real estate owned | 15,226,000 | 18,580,000 | ||
Nonperforming loans, net | 16,996,000 | [1] | 21,059,000 | [1] |
Total | $32,222,000 | $39,639,000 | ||
[1] | Amount is net of a valuation allowance of $1.2 million and $1.8 million at December 31, 2013 and 2012, respectively, as required by ASC 310-10, "Receivables." |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments, Part 2 (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Financial assets [Abstract] | ' | ' | ||
Securities available-for-sale | $693,456,314 | $706,577,806 | ||
Securities held-to-maturity | 38,817,467 | 583,212 | ||
Alternative investments | 6,701,000 | 4,214,000 | ||
Off-balance sheet instruments [Abstract] | ' | ' | ||
Standby letters of credit | 46,041,823 | 48,252,519 | ||
Quoted Market Prices in an Active Market (Level 1) [Member] | ' | ' | ||
Financial assets [Abstract] | ' | ' | ||
Securities held-to-maturity | 0 | 0 | ||
Loans, net | 0 | 0 | ||
Mortgage loans held-for-sale | 0 | 0 | ||
Financial liabilities [Abstract] | ' | ' | ||
Deposits and securities sold under agreements to repurchase | 0 | 0 | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Subordinated debt and other borrowings | 0 | 0 | ||
Off-balance sheet instruments [Abstract] | ' | ' | ||
Commitments to extend credit | 0 | [1] | 0 | [1] |
Standby letters of credit | 0 | [2] | 0 | [2] |
Models with Significant Observable Market Parameters (Level 2) [Member] | ' | ' | ||
Financial assets [Abstract] | ' | ' | ||
Securities held-to-maturity | 38,817,000 | 583,000 | ||
Loans, net | 0 | 0 | ||
Mortgage loans held-for-sale | 12,999,000 | 42,425,000 | ||
Financial liabilities [Abstract] | ' | ' | ||
Deposits and securities sold under agreements to repurchase | 0 | 0 | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Subordinated debt and other borrowings | 0 | 0 | ||
Off-balance sheet instruments [Abstract] | ' | ' | ||
Commitments to extend credit | 0 | [1] | 0 | [1] |
Standby letters of credit | 0 | [2] | 0 | [2] |
Models with Significant Unobservable Market Parameters (Level 3) [Member] | ' | ' | ||
Financial assets [Abstract] | ' | ' | ||
Securities held-to-maturity | 0 | 0 | ||
Loans, net | 4,021,675,000 | 3,358,435,000 | ||
Mortgage loans held-for-sale | 0 | 0 | ||
Financial liabilities [Abstract] | ' | ' | ||
Deposits and securities sold under agreements to repurchase | 4,378,805,000 | 4,084,314,000 | ||
Federal Home Loan Bank advances | 90,652,000 | 76,350,000 | ||
Subordinated debt and other borrowings | 73,083,000 | 83,862,000 | ||
Off-balance sheet instruments [Abstract] | ' | ' | ||
Commitments to extend credit | 1,040,000 | [1] | 1,594,000 | [1] |
Standby letters of credit | 331,000 | [2] | 304,000 | [2] |
Carrying Amount / Notional Amount [Member] | ' | ' | ||
Financial assets [Abstract] | ' | ' | ||
Securities held-to-maturity | 39,796,000 | 575,000 | ||
Loans, net | 4,076,524,000 | 3,642,745,000 | ||
Mortgage loans held-for-sale | 12,850,000 | 41,195,000 | ||
Financial liabilities [Abstract] | ' | ' | ||
Deposits and securities sold under agreements to repurchase | 4,603,938,000 | 4,129,855,000 | ||
Federal Home Loan Bank advances | 90,637,000 | 75,850,000 | ||
Subordinated debt and other borrowings | 98,658,000 | 106,158,000 | ||
Off-balance sheet instruments [Abstract] | ' | ' | ||
Commitments to extend credit | 1,206,528,000 | [1] | 1,030,723,000 | [1] |
Standby letters of credit | 69,231,000 | [2] | 74,679,000 | [2] |
Estimated Fair Value [Member] | ' | ' | ||
Financial assets [Abstract] | ' | ' | ||
Securities held-to-maturity | 38,817,000 | [3] | 583,000 | [3] |
Loans, net | 4,021,675,000 | [3] | 3,358,435,000 | [3] |
Mortgage loans held-for-sale | 12,999,000 | [3] | 42,425,000 | [3] |
Financial liabilities [Abstract] | ' | ' | ||
Deposits and securities sold under agreements to repurchase | 4,378,805,000 | [3] | 4,084,314,000 | [3] |
Federal Home Loan Bank advances | 90,652,000 | [3] | 76,350,000 | [3] |
Subordinated debt and other borrowings | 73,083,000 | [3] | 83,862,000 | [3] |
Off-balance sheet instruments [Abstract] | ' | ' | ||
Commitments to extend credit | 1,040,000 | [1],[3] | 1,594,000 | [1],[3] |
Standby letters of credit | $331,000 | [2],[3] | $304,000 | [2],[3] |
[1] | At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at December 31, 2013 and 2012, Pinnacle Financial included in other liabilities $1.0 million and $1.6 million, respectively, representing the inherent risks associated with these off-balance sheet commitments. | |||
[2] | At December 31, 2013 and 2012, the fair value of Pinnacle Financial's standby letters of credit was $331,000 and $304,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit, which were priced at market when issued, and is included in the consolidated balance sheet of Pinnacle Financial and is believed to approximate fair value. This fair value will decrease over time as the existing standby letters of credit approach their expiration dates. | |||
[3] | Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. |
Other_borrowings_Details
Other borrowings (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Debt Instrument [Line Items] | ' |
Face amount | $25,000,000 |
Interest rate paid | 3.00% |
Frequency of periodic payment | 'quarterly |
Quarterly principal payments | 625,000 |
Date of first required payment | 30-Sep-12 |
Maturity date | 15-Jun-17 |
Minimum prepayment amount | 100,000 |
Annual principal amortization | 2,500,000 |
Fixed charge coverage ratio required, minimum (in hundredths) | 125.00% |
Debt issuance costs associated with Loan Agreement | $162,000 |
Amortization period of debt issuance costs (in years) | '3 years |
Minimum [Member] | ' |
Debt Instrument [Line Items] | ' |
Applicable margin (in hundredths) | 2.25% |
Maximum [Member] | ' |
Debt Instrument [Line Items] | ' |
Applicable margin (in hundredths) | 3.00% |
Base Rate [Member] | ' |
Debt Instrument [Line Items] | ' |
Description of interest rate terms | 'A base rate generally defined as the sum of (i) the highest of (x) the lender's "base" or "prime" rate, (y) the average overnight federal funds effective rate plus one-half percent (0.50%) per annum or (z) one-month LIBOR plus one percent (1%) per annum and (ii) an applicable margin as noted below; or |
Applicable margin (in hundredths) | 3.00% |
LIBOR Rate [Member] | ' |
Debt Instrument [Line Items] | ' |
Description of interest rate terms | 'A LIBOR rate generally defined as the sum of (i) the average of the offered rates of interest quoted in the London Inter-Bank Eurodollar Market for U.S. Dollar deposits with prime banks (as published by Reuters or other commercially available source) for one, two or three months (all as selected by the Company), and (ii) an applicable margin. |
Applicable margin (in hundredths) | 3.00% |
Preferred Stock [Member] | ' |
Debt Instrument [Line Items] | ' |
Number of shares of preferred stock redeemed with borrowings under Loan Agreement (in shares) | 71,250 |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Classification of carrying amount of assets and liabilities of VIE [Abstract] | ' | ' |
Proceeds from issuance of subordinated debt | $82,500,000 | ' |
Maximum Loss Exposure | ' | ' |
Liability Recognized | ' | ' |
Low Income Housing Partnerships [Member] | Other Assets [Member] | ' | ' |
Classification of carrying amount of assets and liabilities of VIE [Abstract] | ' | ' |
Maximum Loss Exposure | 7,945,000 | 6,096,000 |
Liability Recognized | 0 | 0 |
Trust Preferred Issuances [Member] | Subordinated Debt [Member] | ' | ' |
Classification of carrying amount of assets and liabilities of VIE [Abstract] | ' | ' |
Maximum Loss Exposure | ' | ' |
Liability Recognized | 82,476,000 | 82,476,000 |
Commercial Troubled Debt Restructurings [Member] | Loans [Member] | ' | ' |
Classification of carrying amount of assets and liabilities of VIE [Abstract] | ' | ' |
Maximum Loss Exposure | 15,273,000 | 20,951,000 |
Liability Recognized | $0 | $0 |
Regulatory_Matters_Details
Regulatory Matters (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
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 | $142,298,199 | $87,386,689 | ||
Pinnacle Financial [Member] | ' | ' | ||
Actual Amount [Abstract] | ' | ' | ||
Total capital to risk weighted assets: | 621,683,000 | 552,021,000 | ||
Tier I capital to risk weighted assets: | 561,847,000 | 498,802,000 | ||
Tier I capital to average assets (*): | 561,847,000 | [1] | 498,802,000 | [1] |
Actual Ratio [Abstract] | ' | ' | ||
Total capital to risk weighted assets: (in hundredths) | 13.00% | 13.00% | ||
Tier I capital to risk weighted assets: (in hundredths) | 11.80% | 11.80% | ||
Tier I capital to average assets (*): (in hundredths) | 10.90% | [1] | 10.60% | [1] |
Regulatory Minimum Capital Requirement Amount [Abstract] | ' | ' | ||
Total capital to risk weighted assets: | 382,190,000 | 339,151,000 | ||
Tier I capital to risk weighted assets: | 191,095,000 | 169,575,000 | ||
Tier I capital to average assets (*): | 205,695,000 | [1] | 188,695,000 | [1] |
Regulatory Minimum Capital Requirement Ratio [Abstract] | ' | ' | ||
Total capital to risk weighted assets: (in hundredths) | 8.00% | 8.00% | ||
Tier I capital to risk weighted assets: (in hundredths) | 4.00% | 4.00% | ||
Tier I capital to average assets (*): (in hundredths) | 4.00% | [1] | 4.00% | [1] |
Regulatory Minimum To Be Well Capitalized Amount [Abstract] | ' | ' | ||
Total capital to risk weighted assets: | 478,688,000 | 425,748,000 | ||
Tier I capital to risk weighted assets: | 287,213,000 | 255,449,000 | ||
Tier I capital to average assets (*): | ' | [1] | ' | [1] |
Regulatory Minimum To Be Well Capitalized Ratio [Abstract] | ' | ' | ||
Total capital to risk weighted assets: (in hundredths) | 10.00% | 10.00% | ||
Tier I capital to risk weighted assets: (in hundredths) | 6.00% | 6.00% | ||
Tier I capital to average assets (*): (in hundredths) | ' | [1] | ' | [1] |
Pinnacle Bank [Member] | ' | ' | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ||
Retained earnings | 105,800,000 | ' | ||
Actual Amount [Abstract] | ' | ' | ||
Total capital to risk weighted assets: | 599,028,000 | 545,615,000 | ||
Tier I capital to risk weighted assets: | 539,309,000 | 492,489,000 | ||
Tier I capital to average assets (*): | 539,309,000 | [1] | 492,489,000 | [1] |
Actual Ratio [Abstract] | ' | ' | ||
Total capital to risk weighted assets: (in hundredths) | 12.60% | 12.90% | ||
Tier I capital to risk weighted assets: (in hundredths) | 11.30% | 11.60% | ||
Tier I capital to average assets (*): (in hundredths) | 10.50% | [1] | 10.50% | [1] |
Regulatory Minimum Capital Requirement Amount [Abstract] | ' | ' | ||
Total capital to risk weighted assets: | 381,439,000 | 338,548,000 | ||
Tier I capital to risk weighted assets: | 190,720,000 | 169,274,000 | ||
Tier I capital to average assets (*): | 204,977,000 | [1] | 187,981,000 | [1] |
Regulatory Minimum Capital Requirement Ratio [Abstract] | ' | ' | ||
Total capital to risk weighted assets: (in hundredths) | 8.00% | 8.00% | ||
Tier I capital to risk weighted assets: (in hundredths) | 4.00% | 4.00% | ||
Tier I capital to average assets (*): (in hundredths) | 4.00% | [1] | 4.00% | [1] |
Regulatory Minimum To Be Well Capitalized Amount [Abstract] | ' | ' | ||
Total capital to risk weighted assets: | 477,761,000 | 425,005,000 | ||
Tier I capital to risk weighted assets: | 286,657,000 | 255,003,000 | ||
Tier I capital to average assets (*): | $256,221,000 | [1] | $234,976,000 | [1] |
Regulatory Minimum To Be Well Capitalized Ratio [Abstract] | ' | ' | ||
Total capital to risk weighted assets: (in hundredths) | 10.00% | 10.00% | ||
Tier I capital to risk weighted assets: (in hundredths) | 6.00% | 6.00% | ||
Tier I capital to average assets (*): (in hundredths) | 5.00% | [1] | 5.00% | [1] |
[1] | Average assets for the above calculations were based on the most recent quarter. |
Parent_Company_Only_Financial_2
Parent Company Only Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Investment in unconsolidated subsidiaries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | $148,210,975 | ' | ' | ' | $98,819,455 | ' | ' | ' | ' | ' | ' | ' | $148,210,975 | $98,819,455 | ' | ' |
Total assets | 5,563,775,857 | ' | ' | ' | 5,040,548,616 | ' | ' | ' | ' | ' | ' | ' | 5,563,775,857 | 5,040,548,616 | ' | ' |
Liabilities and stockholders' equity: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subordinated debt and other borrowings | 98,658,292 | ' | ' | ' | 106,158,292 | ' | ' | ' | ' | ' | ' | ' | 98,658,292 | 106,158,292 | ' | ' |
Other liabilities | 46,041,823 | ' | ' | ' | 48,252,519 | ' | ' | ' | ' | ' | ' | ' | 46,041,823 | 48,252,519 | ' | ' |
Stockholders' equity | 723,707,661 | ' | ' | ' | 679,071,359 | ' | ' | ' | 710,144,568 | ' | ' | ' | 723,707,661 | 679,071,359 | 710,144,568 | 677,457,285 |
Total liabilities and stockholders' equity | 5,563,775,857 | ' | ' | ' | 5,040,548,616 | ' | ' | ' | ' | ' | ' | ' | 5,563,775,857 | 5,040,548,616 | ' | ' |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense - subordinated debentures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,383,779 | 22,557,100 | 36,882,424 | ' |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,158,277 | 20,643,517 | -15,237,687 | ' |
Net income (loss) | 15,321,000 | 14,647,000 | 14,311,000 | 13,448,000 | 11,730,000 | 11,349,000 | 10,440,000 | 8,365,000 | 7,760,000 | 26,101,000 | 6,372,000 | 3,505,000 | 57,726,201 | 41,883,881 | 43,737,367 | ' |
Accretion on preferred stock discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Net income (loss) available to common stockholders | 15,321,000 | 14,647,000 | 14,311,000 | 13,448,000 | 11,730,000 | 11,349,000 | 7,785,000 | 7,206,000 | 5,681,000 | 24,537,000 | 4,844,000 | 2,011,000 | 57,726,201 | 38,069,841 | 37,072,728 | ' |
CONDENSED STATEMENTS OF CASH FLOWS [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 15,321,000 | 14,647,000 | 14,311,000 | 13,448,000 | 11,730,000 | 11,349,000 | 10,440,000 | 8,365,000 | 7,760,000 | 26,101,000 | 6,372,000 | 3,505,000 | 57,726,201 | 41,883,881 | 43,737,367 | ' |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,082,132 | 4,414,452 | 5,018,294 | ' |
(Increase) decrease in other assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,567,952 | 36,400,237 | 42,346,579 | ' |
Excess tax benefit from stock compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 389,415 | 36,071 | 13,819 | ' |
Deferred tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,841,044 | 1,547,626 | -23,395,052 | ' |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 126,435,352 | 114,277,665 | 113,089,755 | ' |
Investment in consolidated subsidiaries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash (used in) provided by investing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -564,692,904 | -250,387,452 | -13,149,288 | ' |
Financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of common stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,894,908 | 866,683 | 864,805 | ' |
Preferred dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -2,127,604 | -4,891,839 | ' |
Common dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,814,691 | 0 | 0 | ' |
Excess tax benefit from stock compensation arrangements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -389,415 | -36,071 | -13,819 | ' |
Repurchase of preferred shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -71,250,000 | -23,750,000 | ' |
Net cash provided by (used in) financing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 481,907,620 | 129,235,416 | -116,363,608 | ' |
Net decrease in cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,650,068 | -6,874,371 | -16,423,141 | ' |
Dividends paid to Pinnacle Financial | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 21,095,990,000 | ' | ' | ' | 13,657,278,000 | ' | ' | ' | 36,496,508,000 | ' | ' | ' | 21,095,990,000 | 13,657,278,000 | 36,496,508,000 | ' |
Investments in consolidated subsidiaries | 788,522,316,000 | ' | ' | ' | 758,512,213,000 | ' | ' | ' | ' | ' | ' | ' | 788,522,316,000 | 758,512,213,000 | ' | ' |
Investment in unconsolidated subsidiaries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other investments | 4,146,126,000 | ' | ' | ' | 3,214,358,000 | ' | ' | ' | ' | ' | ' | ' | 4,146,126,000 | 3,214,358,000 | ' | ' |
Current income tax receivable | 553,401,000 | ' | ' | ' | 472,869,000 | ' | ' | ' | ' | ' | ' | ' | 553,401,000 | 472,869,000 | ' | ' |
Other assets | 5,638,884,000 | ' | ' | ' | 6,954,411,000 | ' | ' | ' | ' | ' | ' | ' | 5,638,884,000 | 6,954,411,000 | ' | ' |
Total assets | 822,432,717,000 | ' | ' | ' | 785,287,129,000 | ' | ' | ' | ' | ' | ' | ' | 822,432,717,000 | 785,287,129,000 | ' | ' |
Liabilities and stockholders' equity: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income taxes payable to subsidiaries | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' |
Subordinated debt and other borrowings | 98,658,292,000 | ' | ' | ' | 106,158,292,000 | ' | ' | ' | ' | ' | ' | ' | 98,658,292,000 | 106,158,292,000 | ' | ' |
Other liabilities | 66,764,000 | ' | ' | ' | 57,478,000 | ' | ' | ' | ' | ' | ' | ' | 66,764,000 | 57,478,000 | ' | ' |
Stockholders' equity | 723,707,661,000 | ' | ' | ' | 679,071,359,000 | ' | ' | ' | ' | ' | ' | ' | 723,707,661,000 | 679,071,359,000 | ' | ' |
Total liabilities and stockholders' equity | 822,432,717,000 | ' | ' | ' | 785,287,129,000 | ' | ' | ' | ' | ' | ' | ' | 822,432,717,000 | 785,287,129,000 | ' | ' |
CONDENSED STATEMENTS OF OPERATIONS [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 266,472,000 | 157,443,000 | 1,228,999,000 | ' |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense - subordinated debentures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,729,843,000 | 2,689,197,000 | 2,082,836,000 | ' |
Share based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,082,132,000 | 3,664,494,000 | 4,435,739,000 | ' |
Other expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 770,252,000 | 778,947,000 | 669,560,000 | ' |
Loss before income taxes and equity in undistributed income (loss) of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7,315,755,000 | -6,975,195,000 | -5,959,136,000 | ' |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,869,605,000 | -2,736,020,000 | -7,641,435,000 | ' |
(Loss) income before equity in undistributed income of subsidiaries and accretion on preferred stock discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,446,150,000 | -4,239,175,000 | 1,682,299,000 | ' |
Equity in undistributed income (loss) of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62,172,351,000 | 46,123,056,000 | 42,055,068,000 | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57,726,201,000 | 41,883,881,000 | 43,737,367,000 | ' |
Preferred stock dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,660,868,000 | 4,606,493,000 | ' |
Accretion on preferred stock discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 2,153,172,000 | 2,058,146,000 | ' |
Net income (loss) available to common stockholders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57,726,201,000 | 38,069,841,000 | 37,072,728,000 | ' |
CONDENSED STATEMENTS OF CASH FLOWS [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57,726,201,000 | 41,883,881,000 | 43,737,367,000 | ' |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,082,132,000 | 3,664,494,000 | 4,435,739,000 | ' |
Loss (gain) on other investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,484,000 | 138,020,000 | -313,562,000 | ' |
Increase (decrease) in income tax payable, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,532,000 | 169,016,000 | -5,351,564,000 | ' |
(Increase) decrease in other assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,608,121,000 | -912,116,000 | 124,239,000 | ' |
Decrease in other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,286,000 | -8,176,000 | -1,040,000 | ' |
Excess tax benefit from stock compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -389,415,000 | -36,071,000 | -13,819,000 | ' |
Deferred tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -453,661,000 | -75,427,000 | -636,040,000 | ' |
Equity in undistributed (income) loss of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -62,172,351,000 | -46,123,056,000 | -42,055,068,000 | ' |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 513,329,000 | -1,299,435,000 | -73,748,000 | ' |
Investment in consolidated subsidiaries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Banking subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,910,000,000 | 27,210,000,000 | 0 | ' |
Other subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' |
Investments in other entities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -954,249,000 | 47,804,000 | -393,304,000 | ' |
Net cash (used in) provided by investing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,955,751,000 | 27,257,804,000 | -393,304,000 | ' |
Financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net increase in borrowings from line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7,500,000,000 | 23,682,291,000 | 0 | ' |
(Repurchase) exercise of common stock warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -755,000,000 | 0 | ' |
Exercise of common stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,894,908,000 | 1,616,643,000 | 1,447,362,000 | ' |
Preferred dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -2,127,604,000 | -4,891,840,000 | ' |
Common dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,814,691,000 | 0 | 0 | ' |
Excess tax benefit from stock compensation arrangements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 389,415,000 | 36,071,000 | 13,819,000 | ' |
Repurchase of preferred shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -71,250,000,000 | -23,750,000,000 | ' |
Net cash provided by (used in) financing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7,030,368,000 | -48,797,599,000 | -27,180,659,000 | ' |
Net decrease in cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,438,712,000 | -22,839,230,000 | -27,647,711,000 | ' |
Cash and cash equivalents, beginning of year | ' | ' | ' | 13,657,278,000 | ' | ' | ' | 36,496,508,000 | ' | ' | ' | 64,144,219,000 | 13,657,278,000 | 36,496,508,000 | 64,144,219,000 | ' |
Cash and cash equivalents, end of year | 21,095,990,000 | ' | ' | ' | 13,657,278,000 | ' | ' | ' | 36,496,508,000 | ' | ' | ' | 21,095,990,000 | 13,657,278,000 | 36,496,508,000 | ' |
Dividend received from subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,910,000 | 27,210,000 | 0 | ' |
Parent Company [Member] | Pnfp Statutory Trust I [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in unconsolidated subsidiaries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unconsolidated subsidiaries | 310,000,000 | ' | ' | ' | 310,000,000 | ' | ' | ' | ' | ' | ' | ' | 310,000,000 | 310,000,000 | ' | ' |
Parent Company [Member] | Pnfp Statutory Trust II [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in unconsolidated subsidiaries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unconsolidated subsidiaries | 619,000,000 | ' | ' | ' | 619,000,000 | ' | ' | ' | ' | ' | ' | ' | 619,000,000 | 619,000,000 | ' | ' |
Parent Company [Member] | Pnfp Statutory Trust III [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in unconsolidated subsidiaries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unconsolidated subsidiaries | 619,000,000 | ' | ' | ' | 619,000,000 | ' | ' | ' | ' | ' | ' | ' | 619,000,000 | 619,000,000 | ' | ' |
Parent Company [Member] | Pnfp Statutory Trust VI [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in unconsolidated subsidiaries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unconsolidated subsidiaries | $928,000,000 | ' | ' | ' | $928,000,000 | ' | ' | ' | ' | ' | ' | ' | $928,000,000 | $928,000,000 | ' | ' |
Quarterly_Financial_Results_un2
Quarterly Financial Results (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Quarterly Financial Results (unaudited) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | $48,405,000 | $48,177,000 | $47,544,000 | $47,156,000 | $47,203,000 | $46,441,000 | $45,953,000 | $45,824,000 | $46,446,000 | $46,888,000 | $47,789,000 | $47,224,000 | $191,282,415 | $185,421,558 | $188,346,835 |
Net interest income | 44,969,000 | 44,573,000 | 43,599,000 | 42,758,000 | 42,243,000 | 40,932,000 | 40,185,000 | 39,504,000 | 33,854,000 | 34,723,000 | 31,208,000 | 29,882,000 | 168,042,114 | 157,295,628 | 129,666,798 |
Provision for loan losses | 2,225,000 | 685,000 | 2,774,000 | 2,172,000 | 2,488,000 | 1,413,000 | 634,000 | 1,034,000 | 5,439,000 | 3,632,000 | 6,587,000 | 6,139,000 | 7,856,522 | 5,568,830 | 21,797,613 |
Net income before taxes | 22,597,000 | 21,952,000 | 21,289,000 | 20,048,000 | 18,012,000 | 16,371,000 | 15,545,000 | 12,599,000 | 9,207,000 | 9,128,000 | 6,660,000 | 3,505,000 | 85,884,478 | 62,527,398 | 28,499,680 |
Net income (loss) | 15,321,000 | 14,647,000 | 14,311,000 | 13,448,000 | 11,730,000 | 11,349,000 | 10,440,000 | 8,365,000 | 7,760,000 | 26,101,000 | 6,372,000 | 3,505,000 | 57,726,201 | 41,883,881 | 43,737,367 |
Net income available to common stockholders | $15,321,000 | $14,647,000 | $14,311,000 | $13,448,000 | $11,730,000 | $11,349,000 | $7,785,000 | $7,206,000 | $5,681,000 | $24,537,000 | $4,844,000 | $2,011,000 | $57,726,201 | $38,069,841 | $37,072,728 |
Basic net income per share available to common stockholders (in dollars per share) | $0.45 | $0.43 | $0.42 | $0.40 | $0.35 | $0.33 | $0.23 | $0.21 | $0.17 | $0.74 | $0.14 | $0.06 | $1.69 | $1.12 | $1.11 |
Diluted net income per share per share available to common stockholders (in dollars per share) | $0.44 | $0.42 | $0.42 | $0.39 | $0.34 | $0.33 | $0.23 | $0.21 | $0.17 | $0.72 | $0.14 | $0.06 | $1.67 | $1.10 | $1.09 |